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Firan Technology Group Corporation (FTG $11.74)
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Stingray Group Inc. Subordinate Voting Shares (RAY.A $9.82)
FTG EPS of 14c beat estimates of 11c; revenue of $48.7M slightly beat estimates. EBITDA of $8.7 beat by more than 10%. Bookings were $45.8M. Earnings rose 36.5%. Sales rose 26%. EPS rose 31%. The FLYHT acquisition is working and the division achieved profitability. Margins improved more than five percentage points and the outlook commentary was generally positive. Momentum is very solid here and the company is putting things together nicely. We would be more interested at $11 but it is looking better than it has for a while, even at its higher price.
RAY.A shares have finally woken up, up 34% YTD. RAY reported last month, here are comments. It is more leveraged than FTG and we would prefer FTG for growth. RAY is very cheap and we would be OK with it below $10. Both are small caps and risks need to be considered here.