FormerXBC Inc XEBEQ

XBC vs GRN

[AnthonyGuilbert]

Hi all,

I've been always bullish on both companies but after the NR yesterday I had to redo the research and came to the following:

XBC

Met the revenue guidance? No

Q4 EBITDA: most likely negative 

PE ratio: 122

Location: Quebec (badly hit by COVID-19 but was not in lockdown during Q4. Now, it's in lockdown with a curfew from 8 pm which will negatively impact Q1 results of 2021)
 

GRN

Met the revenue guidance? Yes

Q4 EBITDA: positive  

PE ratio: 62

Location: British Columbia (the company is running its operations without travel ban or curfew)

I've been in both since they were being traded at the venture market and I have to say that the graduation to the TSX took XBC decades to make it to the big leagues unlike GRN which made it in less than two years. The PE ratio shows an over-valuation of XBC compared to GRN.

We're all here to make money so we shouldn't let our emotions guide us. I'm thinking of investing in my highest conviction company which lately has been GRN in the renewables sector. I'd love to hear the counter argument to make sure I'm not making any emotional decisions.

[SORNG1]

Emotion plays a big part in both stocks.  I know little about GRN but have owned XBC since stock price was 55 cents.  Friday was a difficult day.  I'm hoping the stock price in 2030 will have little aftershock from March 12, 2021.  Whatever financial difficulties brought on this price drop will hopefully be handled and Xebec will continue to develop on site RNG, on site

[Tan4646]

This from directly above your post, am I missing something? re: Quebec lockdowns. "Geographically, it derives majority revenue from the United States and also has an operation in Canada, France, Italy, China, and Other Countries"

[AnthonyGuilbert]

It matters where the companies headquarters are and they mentioned the negative impact of COVID-19 on the NR yesterday.

[filoux004]

Great followup thank you Antony

[filoux004]

Great post Antony thank you

[Tan4646]

How? it is entirely backward looking, XBC share price has been reset lower with reset targets (with caveats for revision),, not choosing one over the other, I am in both. not comparable based on such backward, limited metrics.

[AnthonyGuilbert]

I appreciate your reply but I just need to clarify few things. The overvaluation comparison is based on the current prices and I looked at all the metrics I had access to. The stability of the management team and the insiders trading volume should always be part of the research. The CFO departure from XBC concerns me in addition to the 3 million shares sold by five insiders including the CEO in

[newcoin]

Anthony, just go invest in GRN and be done with it. Simple.

[Resilience19]

@Anthony, a clarification to your statement that "Location: Quebec (badly hit by COVID-19 but was not in lockdown during Q4. Now, it's in lockdown with a curfew from 8 pm which will negatively impact Q1 results of 2021)". Note that Xebec has been deemed an essential service provider - last year. As such, as far as I know, they are not affected by the ongoing curfew.  Being

[BCdude]

Great question, Anthony. I've been an owner of both GRN and XBC over the last year. Personally, I find their current multiples a little rich for me, but RNG and hydrogen are massively growing sectors so some would feel these high premiums are justified. Zouz brought up some intersting points of comparison beyond the current profit/loss and guidance, as he always does with his quality posts

[AnthonyGuilbert]

Thanks BCdude for your reply! I'll definitely look into the two ESG stock picks. I respect Zouz's comments but my interpretation to the answers're quite different and what matters are the numbers. Why did Kurt Sorschak (the CEO of XBC) sell 2 MILLION shares for 3.6 CAD per share? Why there's so much instability at the management level? I'm not worried about my investment in

[GGreen]

Interesting question. Unlike some others I don't think they need to be identical in order to be comparable. I think XBC is much more comparable to GRN than many references to cos like PLUG, FCEL or BLDP. I have BEEN in both and although initially I had XBC ahead of GRN for reasons I've listed in previous posts but have found that (with the exception of the HyGear and Inmatec acquisitions