Jason Donville Zedcor Energy ZDC-X PAST TOP PICK Jan 06, 2025

Likes it a lot, everything's going well. Continuing to expand. Hopefully, share price can double in the next 2 years.

Only $100M market cap, but good liquidity. Doesn't think it will be at $100M for too long. Sophisticated cameras and monitoring systems for parking lots. Really high margins. Will probably grow at 75% a year, this year and next. Should be $3 in 2 years' time. No dividend.

Towers with cameras for security surveillance. Really ramped up production. Management is executing quite well. Market's excited, great momentum, may have room to go. 

Sold early, so you may not want his opinion on this one ;) Now valuation compared to its financial profile is keeping him out. If you're comfortable with the valuation, you could continue to hold.

They have security towers which saves companies security labour costs. Are very profitable that they reinvest in the business, because demand is outpacing supply. It may look expensive, but 80% of their costs is power-coated steel which last forever. So look at their cash flow and not net income. He expects them growing 85% revenue this year and 100% earnings. Their 28x PE looks expensive, but they're growing fast so future earnings looks cheaper. They have 1,300 towers and one day will have 12,000.

ZDC is a high risk but high growth company with analysts expecting the top-line to grow by 73% in 2025. At 6X forward sales, some of this growth is priced in but regardless, the company has some tailwinds behind it. The company does have negative operating cash flows currently but recently announced a $25 mln offering which will extend their runway. 
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