Post by
93Darkhorse93 on Jun 09, 2016 8:33pm
Good Q - Getting Ever Closer to EBITDA Positive and EPS...
This could be one of the best turnaround stories out of Calgary as a derivative to the oil and gas sector over the next six months bar none.
Operationally management continues to deliver on its promise of streamlining operations by reducing EBITDA Loss by 1.1M (93%), reducing Net Loss 1.06M (74%) and finally a continued reduction of SG&A of another 1.3M (43%).
On the demand side yes revenue was down, but that was to be expected. I would just point out that total buyers continues to increase, as more and more buyers are on the platform the supplier growth will follow as management stated the supply side usually lags buyers slightly. As the number of buyers increases this just creates more torque to the upside as the price of oil and the fundamentals of their clients continues to improve.
We are finally out of the woods when it comes to the seasonally weak Q2 and Q3 periods into the stronger time of the year for Cortex. I believe that this Q could be the inflection point for the business as positive EBITDA and cashflow (maybe even positive EPS!!!) could be generated in the next two Qs.
I will say with confidence I believe the darkest days are behind this company and its time to get long so you don’t have to chase the stock into the 3s when the positive EBITDA and eventually positive EPS print crosses the tape in a return of growth and profitability to Cortex Business Solutions.
A special thanks to whoever at CIBC World Markets knocked the stock down 9% at 3pm today on only 500 shares as this gives me a great entry point for tomorrow.