I like to compare Pyro to Aecon. Yes Pyro has a tech aspect to it but its also construction / engineering.
Aecon: - Has backlog of signed contracts (pyro as well)
- Delivers the projects, gets paid (same for pyro).
-Possibility of getting sued by whale clients who love to sue and have lawyers on payroll.
Reality is: there's often disputes over big projects. City of Ottawa and Rideau Transit Group (RTG) for example for the train no one cares about.
Have a look at the stock price. It's been speculating down HARD.
Aecon just recently announced another whale is fighting them during their 3rd quarter results:
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Aecon has disclosed that a partnership in which it holds a 50 per cent interest, SA Energy Group, has commenced an arbitration to resolve matters including, but not limited to, significant scope changes, delays, and COVID-19 impacts on the Coastal GasLink Pipeline project, which could result in a material impact to Aecon's earnings, cash flow, and financial position if not resolved favourably in a timely manner.
https://www.aecon.com/press-room/news/2021/10/28/aecon-reports-third-quarter-2021-results
Aecon is trading at about $17-18. It pays a decent dividend that is about 4% that I am happy to collect until it speculates back up.
Pyro: -Seems to have better profit margins than Aecon at least.
- No proven record of delivering = risk which means
risks of getting sued by clients for late delivery of projects or technology not meeting expectations. At the end of the day, signed contracts are 1 thing, but can Pyro actually deliver???? My strategy (i'll be blunt): I'm waiting for investors to get excited and i'm abandonning ship (many will do the same). We just aren't willing to swallow the risks.
As soon as this happens, you get rid of me :) Give us contracts Peter. Don't care if you deliver or not. Don't care about the technology. Just want the news.
I'll maybe join back if pyro doesn't get sued by big whales after delivering succesful big projects but i'm sure they will have disputes and want to impose their size.
Anyone want to get rid of me and pay $8 for my shares of pyro? Got about 1,600.
Thanks,
Dividends