FormerXBC Inc XEBEQ

Acquisitions

[Newtrader1982]

Any opinions on whether acquisitions are positive for current shareholders or just creates further dilution? As they plan to probably do several this year.

[tamaracktop]

  Every acquisition Xebec has made in the service sector has been accretive, as oppose to dilutive. I believe HyGear was accretive as well, as HyGear is ebitda positive, Inmatec? not so much.   As their stated intention is to pursue acquisitions in the service field going forward, we can expect more of the same.   Both the stock and this board are acting as though we are

[tamaracktop]

As a partial answer to your question about whether Xebec's acquisitions are accretive or dilutive, here is an excerpt from TD's December 31st report, regarding the acquisition of HyGear. Transaction Size and Multiples: Based on HyGear’s 2019 revenue of ~$17.7 million (€11.4 million) and EBITDA of ~$5.3 million (€3.4 million), multiples paid for HyGear are 8.8x revenue and 29.3x EBITDA. On

[Newtrader1982]

forgive me if this sounds like a stupid question but is it still considered accretive considering where we are currently trading? Didn't they issue new shares as part of the deal around 6 dollars a share?

[tamaracktop]

Not a stupid question. Yes it is still considered to have been an accretive acquisition, as the terms of the acquisition are "grandfathered" so to speak. They were established by the price of Xebec shares at the time, which was in turn established by the rolling average price over 15 days  prior to Decenber 8th. If memory serves me correctly, that price was $6.03.

[Greenkathleen]

Hi TT, I look forward to your input on XBC. You seem so knowlegeable about the markets and trading. I am a beginner, though learning a lot. What are your views on a coming market correction (of about 10%) or a crash? I'm learning to deal psychologically with pullbacks, but I don't know that I have the fortitude to deal with a big correctiion, let alone a crash. (I guess I would have to

[tamaracktop]

The way things have gone in the last few months, you'd probably be better off asking several others on this board.     I 'm pretty open with my thoughts here on this board anyway. I call it like I see it, and I post it.    Personally, I think this board is getting quite emotional these days. In my experience, the word "emotional" is often synonymous with