Q: What is your opinion of Q2 results and the current valuation of the stock given its revenue growth. They have about 59.2 million shares out fully diluted and converted and they report results in $US while stock trades in $C.
5i Research Answer:
Sales of $11.0M grew 49% year-over-year and EBITDA of $0.8M grew significantly for the year. Its margins expanded in the quarter, and production grew multiple-fold. It's broadening its offerings, and overall, most metrics improved at a fast rate. Momentum is improving; it trades at a fairly cheap valuation of 1X trailing sales, and if it can continue to expand its profit margins, we think this name could sustain its momentum.