FormerXBC Inc XEBEQ

TD Comments You won't believe it

[savyinvestor333]

Event Xebec signed a Master Service Agreement with a U.S.-based RNG dairy farm project developer that includes an initial order of 18 BGX Biostream units, a list price of US $1.5 million/unit, and deliveries expected in early 2022.
Impact: MIXED TD View: Large Opportunity: This is the largest single order in the company's history. Recently, Xebec moved away from custom biogas upgrading systems to a standardized product offering and this announcement, in our view, is indicative that the company's strategy is paying off.
Limited Manufacturing Capacity: Xebec has productive capacity of 30 to 40 BGX Biostream units/year, putting a governor on near-term growth potential. However, management is actively evaluating acquisition opportunities to significantly expand its manufacturing capability.
We Expect That Near-term Margin Pressures Will Persist: Early BGX Biostream deliveries featured continued cost pressures (COVID-19-related labour hour & cost inflation) and we are now conservatively forecasting that the 18 unit sale will also feature gross margins that are below its targeted 30% to 35% range.
Estimate Changes: We view this announcement as validation of our 2022 revenue estimate rather than incremental and are not making any material changes to our 2021 and 2022 revenue forecasts. However, we are making downward revisions to our margin expectations based on the commentary above, as well as changes to our Q2/21 forecast.
As a result, our 2021 and 2022 EBITDAS estimates decrease to a loss of $2.7 million and positive $15.2 million, respectively. Details on page 2. TD Investment Conclusion We believe that Xebec remains in "show-me" territory with institutional investors and that the financial performance of its core Cleantech Systems segment will be the primary driver of near-term share price performance.
In this context, we view today's announcement as MIXED, balancing both a very robust order with continued conservatism on margin expectations. As a result, we are maintaining our SPECULATIVE BUY rating with a reduced $6.00 target price ($7.50 previously).

[newcoin]

I CAN'T BELIEVE IT??? WTF???

[iknowsmthing]

Today's Volume  and  price increase says otherwise!   Great NR today Xebec Mangement, keep it coming. I'm staying long. GLTAL

[ferret_ca]

td's comments are very reasonable imho, the plus is the contract, which the market obviously likes the show me is a fact. we won't know for at least a few q's just how much margin xbc makes on these contracts, fact is nobody knows until we see the results. what they have proven is that in the past they made SFA on projects everyone thought they were making good money on, hence the show

[HonestAl]

Personally ferret, I like to call people out for excessive cheerleading.  I believe this is a great long term stock but to pat ourselves on the back today makes me shake my head.  Be happy for today, but nothing more if you're a long.  If you're hanging on to every word a person who has no skin in the game says, you're gonna end up disappointed. And broke. 

[Zipolitemexico]

I really don't understand why you can't get through a day with out tossing out an insult or two to your fellow posters. 

[Ciao]

LOL, MIXED impact then downgrades share price target.  This must be the same analyst that gave the $17.50 share price. "We Expect That Near-term Margin Pressures Will Persist: Early BGX Biostream deliveries featured continued cost pressures (COVID-19-related labour hour &cost inflation) and we are now conservatively forecasting that the 18 unit sale willalso feature gross

[Gasmonkey]

TD doesn't know S**T.  $17.50 they say..... That about sums up what they know !!!!  Bunch of Idiots !!!!