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EPS was -7.9c vs estimates of -6.8c; The revenue base remains minimal. Cash flow last year was negative $38.4M, a bit better than expected. The stock is really not trading on current earnings/revenue, however. It is hard to analyze on regular fundamentals with no sales. It surged on Monday as it said it was engaging with the NRC in a pre-application readiness assessment. Trump policies should be good to reduce red tape in the nuclear sector. The company has $275M cash. It has good backing, and there is certainly potential here. We would of course prefer to see actual revenue and positive cash flow. Insiders own 19%. The stock has done very well, up 36% YTD and 162% in a year. We would consider it a bit more than 'somewhat' speculative, and high Beta. But if the market does well, we would expect good things here.
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We would be comfortable with ZFH. Floating rate bonds, of course, may see lower distributions if rates fall, but do offer protection in the opposite scenario. Indicated yield is 5.64% and one year return +8.48%. We would consider it a solid, fairly conservative ETF for income. Fees are 0.45%.
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The fund owns a mix of global bonds and stocks, with 57% equity exposure and 40% US exposure. It also owns 10% cash. While certainly not risk free, it is a well-balanced ETF paying a 4.75% dividend and we would consider it fairly conservative.
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Losing Money in the Stock Market: Buying companies that are constantly issuing shares
Some companies use their stock like an ATM machine, continually issuing shares to raise capital and diluting existing shareholders at the same time. Yes, we know that’s the main reason for the stock market. But, companies need to be self-sufficient at some point. A company that issues new shares year after year will find it hard to grow per-share earnings, even if the top line growth looks good. Sometimes companies will need to issue shares in order to acquire another company and we would consider that different. It is the companies that issue shares all the time and then either do nothing with the capital or, worse, use it to fund ongoing negative cash flow that we caution against. For example, we will pick on one company, the one we found in Canada with the most shares outstanding. You can connect the dots. IAnthus Capital Holdings Inc. has 6.7 billion shares outstanding and its 10-year stock performance is minus 99.3 per cent, according to Bloomberg.
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It IPOs on March 28. In 2025: $1.91 billion in revenues, $15.1 billion RPO and 96% revenue come from contracts that last 4 years. Not yet profitable, but moving in the right direction. Great growth, but what are previous generation GPUs worth, how concentrated are its customers and will demand for computer continue? He thinks demand for AI infrastructure will stay strong for a long time, so he's interedsted in CRWV. The IPO price if $47-55, but it lacks profits. Grew 700% last year, and projects 200% in 2025. So considering enterprise value, you can buy this in the $50s, but not $60s.
It IPOs on March 28. In 2025: $1.91 billion in revenues, $15.1 billion RPO and 96% revenue come from contracts that last 4 years. Not yet profitable, but moving in the right direction. Great growth, but what are previous generation GPUs worth, how concentrated are its customers and will demand for computer continue? He thinks demand for AI infrastructure will stay strong for a long time, so he's interedsted in CRWV. The IPO price if $47-55, but it lacks profits. Grew 700% last year, and projects 200% in 2025. So considering enterprise value, you can buy this in the $50s, but not $60s.
The PE is now below Walmart's. They have so much data and are developing agentic AI, the next wave in tech. He targets $255.
(Analysts’ price target is $267.87)