Opinions
Varun Anand
Greenlane Renewables Inc.
GRN-T
WEAK BUY
Apr 27, 2021
Stock price when the opinion was issued
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. At 4x sales, it is more expensive than peers. Down 40% year to date, but still largely up compared to 1 year ago. Balance sheet is strong and growth rate is higher than average. Unlock Premium - Try 5i Free
A past top pick. It's a smaller version of Xebec, both in renewable natural gas, but got dragged down by Xebec's woes and Covid. He got stopped out of this, but is happy to reconsider it. There's a 5-15-year tailwind for this sector as governments legislate for more energy.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their latest earnings matched EPS estimates. Revenues increased by 107% and the company has cited a growing sales pipeline. Should be profitable next fiscal year and it has demonstrated good revenue growth. Valuation is decent with no debt. If EV and green energy picks up momentum again, there can be a rotation back into this space. Unlock Premium - Try 5i Free
A small cap, too small for him, but it's one of the leaders in renewable natural gas. They have three technologies to process nat gas, which puts them in an ideal, unique position to serve customers. RNG is in the early stages so there could be a lot of momentum if governments adopt RNG. This isn't a cheap stock, because it prices in many years of growth, which is partly justified. He likes GRN, but expects some volatility. But the independent Canadian power producers offer more stability and a lower valuation.