Happy Sunday to everyone. Matthew and I hope you are having a great weekend.
After some feedback and thought, I am going to change the format of the "Week in Review" to make it a bit more consistent week to week. I have come up with the model below and we will roll with it unless members have any comments about it. From week to week there may be additional sections when justified, such as a general market overview, a comment or two on a major development with a company on our watch list, etc.
Without further ado, here we go...
Portfolio Positions Update
Kelso Technologies (KIQ, KLS.TO): On Wednesday Kelso made public in a press release that their KKM adaptor has been approved for commercial use in the Bakken oil operations. The significance of this announcement was stated well by the CEO (James Bond...yes that's really his name!)
Also important to note is the October 1st deadline for OEMs (manufacturers) to start adopting to the new regulations that have been promulgated recently. This means that many of the players in the railroad industry will opt for Kelso's various products since they comply with such regulations and are safer and only slightly more expensive than current options. All of this could lead to a nice bump in Q4 numbers.
Finally, on Friday I sent out a note that I added to my position in Kelso; in fact, I averaged up. The decision was based on several factors, the most important being that Matthew and I feel that the back half of this year will result in strong performance for the company. I wanted to make Kelso a little larger of a position in my portfolio, which I have now accomplished. It represents about 25% currently.
Ackroo (AKR.V): Matthew posted an excellent recap of his conversations with CEO Steve Levely from early in the week at an investor meet-up. Steve holds this meet-up quarterly at different locations in Canada. He communicates very well with shareholders which is one reason we like him so much. Matthew's notes provide many nuggets of great information, including a potential acquisition soon of which terms would be very favorable and extended out long-term with no dilution to shareholders. Ackroo is intent on continuing with their acquisition strategy, and we like it. It was also nice to hear that Steve has absolutely no plans to raise equity while shares are around these levels. We suspect he may do so around $.50-.60/share, which is a level that Matthew and I (and Steve) think the stock will return to in the coming months. However, as Matthew noted in his article this week, October could bring some weakness to Ackroo and there may be some great opportunities to buy/add to existing position on any dips from here.
Brekford (BFDI): Quiet week for Brekford. Nothing of significance to report.
Beam Interactive (BZIC): I will have my research piece on Beamz out on Monday morning. Stay tuned!
Microbix (MBX.TO): Pretty quiet week for Microbix as well. Each week that passes without news on Lumisort and/or Kinlytic commercialization is another frustrating week for me, to be honest. I am only going to tie my money up in Microbix for so long as promises of commercialization deals have been made by management for some time now. I will exercise some additional patience, but it has been somewhat frustrating to be honest.
Biosyent (RX.V): A quiet week for this one. Nothing to report of significance.
OneSoft Solutions (OSS.V): Matthew posted his article to several other outlets to try to garner some investor interest in this one. It's an exciting little company in its very early stages, but certainly one with some risks.
Ackroo (AKR.V): See above.
XPEL Technologies (DAP.U): Very attractive at current price of $2.30. Trading at 1.4x annualized Q2 sales and growing between 35-50%.
Kelso Technologies (KLS.TO): See above.
After publishing the article on Beamz (BZIC) tomorrow, Matthew and I are going to focus on some of our Watch List companies. We have some companies with great potential that we are keeping our eyes on, and we will be publishing some of our due diligence on these companies in the weeks ahead.
As always, if you have any companies you want us to consider for the Watch List, please let us know.
Any questions/comments/feedback...please let us know!
Thanks for being a member-- we really appreciate it and are enjoying this very much!