Q: Hi Peter, I have introduced some exposure in my portfolio to Maxim. I like the small cap exposure to power and electricity. The balance sheet looks pristine. Can you give me your thoughts on the latest quarter.
Thank you
Thank you
5i Research Answer:
MXG has no analysts, and thus no estimates. Revenue dropped sharply to $20.2M from $34.7M. EPS was 5c vs 21c. EBITDA $5.2M vs $15.9M. Power prices were much lower as were generated volumes. Capital spending increased and interest income was lower. Cash flow was OK, and the balance sheet is net debt free with $30M cash. Certainly not a good quarter, though. The stock is expensive on valuation, and its small size and lack of coverage make it difficult to attract new investors. Insiders own 78.5% which is good but bad for liquidity and to attract new buyers. The stock is down 33% YTD. The stock is up about 34% in the past 10 years. With no dividend, and its size and liquidity risky, we do not find it that compelling.