illumin Holdings Inc T.ILLM

Multiple Responses

[retiredcf]

Q: These companies (EGLX, WELL and AT) are getting killed on no news. I understand the environment with tax loss, covid, backdrop etc. What I don't understand is why the shorts aren't covering or appear to be. Also are these companies prime candidate's for a takeover?
 

Short-sellers may continue to view the selling as not done and would not want to exit too early. Essentially they are riding the negative momentum. Buyers are also not yet showing strength, but we think this will change in the new year.  Of the three, we think AT is most likely to be acquired, then EGLX, then WELL. However, the management for all three has expressed that they will not sell easily. 

What are your top 3 choices of Canadian small cap value stocks today for a 5 year hold?

It is tough to pick three, but if we had to choose we would go with: AT, CTS, and ANRG

And later......... AT now has 40% of its market cap as cash. It is profitable and has positive cash flow. Its US IPO was in June at US$10.15 and the stock is $3.23. Insiders own 16%. The stock has of course been a pig, but we think selling today would be closer to an eventual bottom. Things are not as bad as the stock price might indicate, in our view. 

Lots of questions for 5iResearch yesterday. GLTA

[Dunworkin2]

I concur. (Disclaimer: I own at least one of the stocks mentioned in the report). :))

[tinkvid]

Cash flow positive and in these inflationary times(transitory or not) is it not better to own names like AT? Could the recent weakness be due to the transition of CFO's? Either way I am in...

[Torontojay]

I can think of a number of reasons why the big sell off for the year.  1) The company was overpriced back in Feb. Now the opposite has occurred where investors have become over bearish.  2) Google 3rd party cookies going away which has now been pushed back to late 2023.  3) Insider selling that occurred in late 2020 and at the beginning of the year. The shorts love this kind

[Benoityaz]

And the biggest reason of all is that after one year of operations, their trade desk alternative illumin is not really doing that great (they are good at upgrading existing customers to it, which isn't hard to do) but they have failed getting the actual big guys.

[Torontojay]

  This is a false statement. Stick to the facts.  67 % of Illumin's revenue can be attributed to new clients. They are in discussion with 8 auto companies. Many of their clients in the past have come from the auto sector.  Let's go back to what you said. In Q4 2020 Illumin achieved $1.5 m. Q1,2021 they did $3.2 m. Q2 they achieved $5.2 million and Q3 with $7.4m

[Benoityaz]

. Illumin is just the new flavor of their UI. You can't even request the old platform if you are a new user. It's just a name change (from acuity to illumin). Key thing that illumin wasn't supposed to do is bring big boys. It is not.

[Benoityaz]

*Was (not wasn't), in my previous response (typo).