FormerXBC Inc XEBEQ

Short position to April 30.

[Ciao]

The short position on TSX increased another 267K for the 2 week period ending. For this period the short was responsible for 13% of the total volume and the increase in short position represente 28% of the short volume. Unlike previous times, where they covered back on avg. 88% ofthe shares, they only covered back 72%.

The SHORT is caught between a rock and a hard place and needs to quell any rallies in the stock in light of the improving fundamentals of the company such as the $143M SCS contract. Any efforts by themselves to cover in the open markets will in itself create a squeeze.

Don't be fooled by the share price, it doesn't reflect the true value of the company.

[kulewater]

Quite a precarious position for shorts to be in.. especially with the inflection point on the horizon. There is a few big bets on both sides that will be interesting to watch. Looking forward to the Q1 release and subsequent developments. Have a great weekend all.

[Ciao]

The SHORT is betting on a financing (to cover) vs. others betting on the fundamentals of the company and that at a valuation of 1XBV and 1.5X forward P/S, it's undervalued.

[kulewater]

From latest filing:  As at December 31, 2021 the company had $51.1 million of cash and restricted cash  A decent amount of cash and a credit facility close to another $50M.  Not sure what the financing or PP would be for. I suspect if they do get another massive conversion from pipeline to order they may need more slack in the operating capital but the share price and revenue

[Ciao]

XBC have agressive plans to grow it's eco system in part by acquistions. So as noted by management, they are paring down their service flow purchases, looking for partners on their H2 hubs to help finance them,and managing cash flow with customers and vendors to minimize the need to hit the capital markets at "current market" conditions. The SHORT has been doing this since mid Sept

[kulewater]

i dont disagree with the narrative of short scenario. And I concur on the roadmap they have put forth. I do however remember them saying acquisitions will not be a priority this year as they work to optimize and integrate existing units across the organization. They could still do one or two I suppose.  The question remains.. what would they need to happen for $100M in capital to not be

[Ciao]

Agreed. They'll do what they can with any sort of creative financing as needed vs. an equity raise at current market conditions.

[whognu1]

well, i don't get it (this should not be seen as surprising) on one hand, XBC has truly been holding up very well v/v its contemporaries ICLN, PLUG, FCEL, GRN, BLDP, which are all plumbing the 52 week lows are we to beleive that all the others (including the etf) are in fact, not viable businesses and only XBC has a worthwhile business model? perplexing either way, i suspect this non

[ZouZS3]

Finally a smart comment by Whognu. Sounds pretty bullish to me!