FormerXBC Inc XEBEQ

Remember this from a week ago?

[tamaracktop]

Moving averages

"The 20-day M/A is now $0.79 and the 50-day is $0.84. While not critical to hold $.79, it would be desirable. Holding the old low at $73 is far more importantl. We don't want this showing up on the daily reports of stocks making new lows. Meanwhile the stock trends sideways. A cOffers For Youlose well above the 50-day M/A , or at new 2 1/2 month highs at $.90 or better on volume would be the best possible scenario. Not necessarily today, any time in the next week."

We all know what's happened since then.

It broke to new lows and promptly dropped another 20%.

That's the sad history, but what's next?

Some people get it, some don't.

THE BAD NEWS IS IN THE REAR VIEW MIRROR AND IS OVER-COOKED IN THE STOCK PRICE.

This company has no problem with revenue growth, they have and will continue to improve
margins, the backlog is very strong, but the balance sheet needs work.

Very doable work.

Asset sales and convertible debentures aside, remember the CDPQ?

The Caisse de dpt et placement du Qubec.

When Xebec did their big financing in December 2020 to fund the purchase of HyGear, they announced a concurrent private placement,

The Caisse excercised their full over-allotment and invested $63 million in Xebec at $5.80.

I'm not suggesting this will definitely happen, but what do you think the stock would do literally overnight in the company were to announce a cash infusion via another private placement with the Caisse?

Remember, a private placement is far different than a secondary offering.

The Caisse's holdings are not considered part of the float because they are traditionally very long term investors.

The stock would gap sharply higher because the balance sheet would be markedly improved.

The Caisse would benefit because the value of their existing holdings would increase, as would the of their new investment.

Whatever price the Caisse paid for the shares would likely establish a new "floor" for the shares.

It's a win-win.

The number of alternative financing options Xebec has is hard to figure out.

I can assure you this one isn't as far-fetched as some here might think.



 

[whognu1]

TT's new tag line............ "THE BAD NEWS IS IN THE REAR VIEW MIRROR AND IS OVER-COOKED IN THE STOCK PRICE" you've been ridiculously wrong since $14.00 the good news tho, is eventually you will be right.................just like a stopped clock good luck the buffoon ps. was that another new low today? asking for a friend.........