Dennis da Silva
Storm Resources Ltd.
SRX-T
HOLD
Jan 30, 2014
Still very early stage. A long lead cycle. They are trying to get over the hump. They are de-risking assets. They are trying to maintain a nice clean balance sheet. They have easy access to capital so the market is willing to finance the project. There are companies further along the process, though.
Acquired Netro, which gave them $100 million in cash. The remote wireless telephone access space still has not recovered. Improved management. Treat as a trading stock.
Didn't have a great first quarter. Long-term, the fundamentals are good. They've been putting up new orders and the backlog is good. A year from now they should have a good amount of earnings. Have to refinance their debt which is due next April.
Still very early stage. A long lead cycle. They are trying to get over the hump. They are de-risking assets. They are trying to maintain a nice clean balance sheet. They have easy access to capital so the market is willing to finance the project. There are companies further along the process, though.