FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:the pipe dream is done

[tony08]

Ciao wrote: Unlike some other companies, XBC is not trying to buy revenue growth.  They are building the company by purchasing service centers to service the products they sell, purchasing companies with complimentary tech so they can produce green (cyan) hydrogen from RNG, adding complimentary business in profitable niche areas (Gaas), etc.

Organic growth will come largely from BGX RNG system sales. Analysts need to do some homework as they should recognize that in 2021 XBC sold a lmited number of BGX systems in H1 and a trickle in H2. These were sold at zero or negative margins. Obviously if they were quoted correctly, the margins would be there and there would be a much higher revenue contribution (thus organic growth). Let's see how BGX sales are for 2022. 

As for the share price not reacting to Q4 (let's see the shorting activity that occurred to suppress teh share price, the report should be out in 2 weeks) and for the stagnant share price, where would the share price have been if there wasn't a 10M short position on the stock. Or where would the share price be if the SHORT started to cover say 8M shares.

If analysts were doing their homework they should be commenting on valuations, such as book value and how the short position has distorted the share price. If they're not aware of the short position, then they are blindly accepting the valuation that the market is assigned to the company without questioning it or investigating. I can see why they are fraught with fear now that XBC is no longer giving guidance and they may need to start thinking for themselves.





First thankyou Ciao for the info about the margins....I did'nt know they sold their BGX then at zero or negative margins....

I mostly agree with what you're saying there, except for the reason why the stock fell the day after Q4....

I agree that the shorts influence the stock in general but despite the activities of the shorts, on March 17th the stock had passed from a low of $1.60 to a high of $2.09 in just one day.
 

Subsequently, as analysts set their valuations, the stock fell from $2.09 to a low of $1.76 the next day.

 

Yes the shorts influence the share price, but specifically in relation to March 17 and the 2 to 3 days that followed, the analysts influenced the price as well.