BSM Technologies Inc BSMZF

tough times for BSM ahead

[ddun]

The firing/retiring of Larry Juba (COO) and the firing of Peter Callaghan (CSO) is the start of the 'Blame' game. The poor Q4 and 2017 results will be blamed on the outgoing COO/CSO. The severance for these guys was huge as is disclosed in their Annual Report. The truth is the company has done poorly and the 'activitist shareholders who make up most of the board of directors have done nothing to intervine. This company should be growing at 15-20% annually but in fact it is at breakeven or even negative growth. The 5 acquisitions in last 3 years have made the top line 'bulk up' but the business is not growing. No expansion in Europe, Middle east or Asia and the churn is keeping the company stagnant.That is why the stock is down from $1.70 to $1.22 in one month or so. Look at the chart; the price is below the 30 day, 50 day and 100 day moving averages. We need some shakedown and changes and all of this will take time.
The only positive outcome would be if someone bought BSM for a stupid premium. For Calamp or other such companies these Canadian assets are very valuable and complementary. Just my humble opinion.

[Kdawg51]

5i Research recently (as of mid-Dec 2017) did a report on BSM Technologies giving it a very high rating for growth and consider it a buy at its current price. I would suspect that despite its challenges in the near term, their future still looks bright. I'm patient on this one. Now that thye are debt free i would consider it to be a safe stock, the challenge is whether the company can obtain