FormerXBC Inc XEBEQ

What irritates me more than anything

[tamaracktop]

What bothers me the most about this is that I can't figure it out

I have busloads of people asking me why this is what it is, and I don't have an explanation that is even plausible to me.

Market distortions happen all the time, but are usually very brief.

I remember in the '80s when Loblaw's shares were beaten down to a point that they didn't even reflect the value of the company's real estate.

That didn't last long.

I contrast, this situation has been persistent, and is becoming increasingly difficult to attribute to nothing more than undue pessimism.

Consider these comparisons:

Greenlane has $54.8 million in equity and is capitalized at $115.74 million

Cielo has $33.7 million in equity and is capitalized at $119.2 million

Xebec has $289.7 million in equity and is capitalized at $ 137.7 million.

This is becoming increasingly difficult to explain.

I'll point out some more outstanding facts to underline what I see as a bizarre inequity in the market.

Greenlane has $23 million in cash, $11 million in receivables, $21 million in payables, and is trading at 2.167 times book value.

Cielo has $2.54 million in cash, $461,000 in receivables, $1.49 million in payables, and is trading at 3.6 times book value.

Xebec has $24 million in cash, $52 million in receivables, $36 million in payables, and is trading at 0.47 times book value.

Now take a look at the price-to-sales multiples, on a trailing basis...

Greenlane is trading at 1.97 times sales.

Cielo has no sales.

Xebec is trading at 0.93 times sales.

I probably shouldn't have included Cielo in these comparisons because while its tenure here is short-lived, in my opinion, I did so for amusement and to at least partially explain my difficulty in rationalizing what's going on.

I'm experienced enough in the markets to understand that they sometimes go to extreme extremes, but attributing the persistence of Xebec's weakness to bad sentiment is wearing thin amongst the people I answer to.

It seems to me that there's a contingent of people making a very big bet against Xebec's management.

If I was in management, I'd take it very personally.

It certainly isn't going unnoticed.

I keep waiting for the market to correct what I see as a major imbalance, and I'll breathe a huge sigh of relief when it does.

In the meantime, least I can take some small solace in the fact that the Chairman of TD bank remains on the board.

[tamaracktop]

Maybe Cielo trades at 3.6 X book because the market can't complain about their margins.

[Winston1]

Well said TT. The share price for XBC has been distorted beyond any reasonable measure. This is a result of unadulterated fear and negativity by retail investors. The good thing is that fear brings opportunity and those who've been in the market long enough will be able to identify that and capitalize on it by buying shares. The extremely high volume every single trading day tells me that this

[AlwaysLong683]

Higher daily trading volume is good if the share price is rising as lots of shares are being bid up in price. Higher daily trading volume is bad if the share price is falling as lots of shares are being sold at lower and lower ask prices. Last Friday May 27, XBC closed down 9.28% on volume of 1.81M shares. XBC's 30-day average trading volume is 1.03M shares. Thus, Friday = Bad.

[tamaracktop]

Couldn't agree more with your overall premise. Higher volumes have occurred daily since May 13. The stock closed at 99 cents on May 13th. Millions of shares have changed hands since then, and thestock price hasn't moved significantly.  The mid-point between the May 19th low at $0.76 and Thursday's high at $1.12 is $0.94 It seems to have found an equilibrium of sorts

[tamaracktop]

Posted pre-open on May 30th. Stock at 88 cents. Unfortunately seems to have been quite prescient. This won't last much longer. Today marks 3 weeks of consolidating 15% above the low at 76 cents. That ought to be enough. It's been painful.

[motivator2]

Can't believe u have the balls to show your face here. The stock is .88 cents. Everyone has lost. Do u still look at that ticker tape in your bedroom?? Move on my erstwhile friend. 

[tony08]

[/quote Hey motivator A little frustrated maybe.....takes a breath of fresh air.   You can't blame anyone but yourself if you're unhappy with the performance of a stock YOU bought.   As far as I'm concerned, I'm very happy to have these same stocks in my portfolio and I'm still convinced that I will be greatly rewarded in three to five years.

[Gann999]

actual total assets for xebec is 140m the majority of the rest is intangible, goodwill and a few others under non current assets.

[tamaracktop]

No

[Ciao]

We've gone through that before. Most of goodwill came from HyGear purchase. Did they overpay for any acquisitions? No. Can they sell HyGear for the same or more than they paid? Yes.

[Gann999]

Yes I understand that I am just saying that the market is giving a zero dollar value to xebecs non current assets as the market cap is roughly the same as total current assets not saying it's a logical valuation.

[tamaracktop]

I thought about re-posting that to the Cielo board, but decided against it. I've been accused of promoting Xebec there despite repeatedly stating that wasn't my intention, and despite my suggestion shareholders there would be better off owning anything at all other than Cielo. Many of those there remain victims of an obvious pump and dump. It seems quite clear looking a Cielo's