Xebec Adsorption (XBC-T)

Believes that renewable natural gas demand will increase. Latest investor day outlined 40% compounded growth the next three years. Recently signed a contract that was bigger than expected.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a very nice contract. There was a MOU that was announced in March though, so investors had a heads up. The time frame was not disclosed. Sales estimates for 2022 were just under $200M, though there was some impact from previous announcements in the forecast. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock has sold off dramatically and likely has good potential from current levels. Management is still in the penalty box due to the reporting issue but this is priced in already. ESG is a tailwind. Investors seem to be liking the 3 year strategic plan that management announced. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The quarter showed improvement with revenues beating estimates at $46M. EPS was 2 cents, which was also better than expected. Net losses and gross margins also improved. Good results overall that will reassure investors. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The estimates for the next report is $43.7M in sales. They need to show improving margins and more contracts for the momentum to turn. Cash has gone down, so cash flow is important. Capital raise would be a worry. Needs a strategic review to turn it around probably. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Certainly lower risk now at these prices. However, would wait for better news and improvements on fundamentals. Hard to call the bottom and sentiment could continue to be negative. Trading at 1.7x sales, which is below pandemic pows. Would wait for more positive momentum. Unlock Premium - Try 5i Free