FormerXBC Inc XEBEQ

Tough Q3? .... probably

[ZouZS3]

Canaccord Genuity analyst Yuri Lynk has reaffirmed his "buy" recommendation for Xebec Adsorption. The Globe's David Leeder writes in the Eye On Equities column that Mr. Lynk trimmed his share target by 50 cents to $4.50. Analysts on average target the shares at $4.54. Mr. Lynk says in a note: "In hindsight, our upgrade of Xebec on July 6, 2021, was premature. ... We expect another tough quarter in Q3/2021 as inflationary pressures and logistical issues could pressure margins on the legacy contracts. However, as we move into 2022, these contracts should be well into the start-up and commissioning phase and, therefore, less of a drag. At the same time, the company is beginning production of 30 BGX-Biostream RNG upgrading units, which are standardized modular units that are built in a plant and shipped in a container. This should improve execution (and margin) in 2022. Meanwhile, Inmatec is experiencing STRONG demand for its onsite nitrogen and oxygen generation products such that management aims to DOUBLE this business over 2 years. The service business is up on acquisitions while Hygear is slightly down."

[tamaracktop]

Pardon me? "As we move into 2022"? We move in to 2022 in 2 months. The market looks far down the road. Way further than 2 months. Way way further. Look at Ballard and FuelCell and Plug. The market has been looking years down the road for years. I think this analyst is out-to-lunch. After all, it's lunchtime.

[filoux004]

TT with all due respect have you ever looked at a 20 years chart of BLD. The adoption cycle for renewables and green technologies is going to be a very very long walk through the desert. God forbid the financials are weak. Anyways we will answers very shortly. All said Politely lo g 1000 shares at 3.37

[Mick67]

At the sake of being repetitive.  Q3 expectations should be simply looking for improvement so that the picture that they are relaying to the market is  that the company has gotten through its legacy contracts and is ramping up a profitable BGX business.  ANd that you'll see more progress in Q4 and a very promising profitable outlook for 2022. Regardless of Q3, if that is the

[tamaracktop]

That highlighted statement is debatable. Very debatable. Have you noticed that virtually every analyst covering all the companies in this space has cited inflation and supply chain disruptions a concern? Legacy contracts are a wildcard. Is it not possible that the diminishing negative influence of legacy contracts more than offset inflation's cost on the bottom line? You bet it is. Look

[catchascatchcan]

What's not debatable is that we are tanking going into the quarter.  And we still have almost two full trading days before the news hits the wire.  It is not bullish, irrespective of weak attempts to spin the current action.  I hope we see a late day reversal, and are mid 3s to better absorbe a blow come game time.  GL

[tamaracktop]

Well you might be right, but we're all entitled to our opinion and I remain completely bullish. In fact, I don't think there will be any "blow" at all. I think this will be the "show-me" quarter. As for your comment about  "tanking going into the quarter", I think that's a bit extreme. We've lost 39 cents in the last 3 sessions after gaining $1

[catchascatchcan]

You're most definitely entitiled to your opinion.  I do desperately hope you're correct, and this turns out to be the 'show me' quarter.  As half-empty as I am, I would take no greater pleasure than watching this turn.  XBC and LSPD have both taken it in the plums for me, but TSLA and SHOP have shone.  Balance in all things.  There was a time when all 4 of

[Ciao]

You can see where XBC is in on this cycle with BGX. https://corporatefinanceinstitute.com/resources/knowledge/finance/business-life-cycle/ All the other cleantech names are highly UNPROFITABLE.  Why XBC is put to a much higher standard is beyond me. IMHO it was more the revision in guidance due to these startup costs than its impact on EBITDA. They should just say it aloud then take XBC