Investment Q&A

Q: What does 5i thinks about this news with giant Dow Chemical and little EcoSynthetix?

MIDLAND, Mich., / USA – June 6, 2022 – Dow (NYSE: Dow) today announced an exclusive engagement with EcoSynthetix Inc. (TSX: ECO) to bring innovative bio-based, biodegradable and low-carbon solutions to the personal care industry. The engagement initially targets the hairstyling market, providing unmatched benefits for consumers. The engagement will enable both companies to leverage their key expertise by meeting the growing consumer demand for bio-based and biodegradable technologies that provide unique and high-performance benefits.

Q: For a very un-promotional Company, EcoSynthetix stock continues to climb now trading at 10-year highs with increasing daily volumes. With revenues rising, it seems the potential for their green adhesive products is real given they have commercial accounts with major companies. Your thoughts?

Q: I have always got the impression you have nothing against ECO besides always being a bit pricey.

ECO has really run up the past two weeks, with no news (that I have seen anyways), any idea why? If you thought it was pricier prior to this run-up I guess your concerns would be even more so now?

Q: Is it unique that Bank-owned TD Securities investment firm is the first house to pick up coverage (Buy - $8.50 target )on a small cap like ECO given that the Company is cash rich and requires no capital raise in the foreseeable future. Or is it that green products at ECO are just too interesting here?

Q: ECO Management stated that they will become a "climate positive" Company in 2022 given the commercial uptake of their green products. Will this attract institutional investors with the mandate to invest in green companies and allow for the higher valuation?

Q: What is your opinion on Q4 and FY2021 results. It seems its green products are gaining traction and the Company is cash flow positive. I believe it is a beat on TD Securities' revenue estimates based on their new research report.

Q: What is 5i thoughts about Q2 results. It seems revenue growth is here and sustainable derived from a more diverse customer base (according to CEO comments) and take-up from a major retailer (believed to be IKEA) is moving forward.

Q: Despite being one of the top performing stocks on the TSX over the past 12 months there seems to be no mention about this Green Company by anybody on the street. Is this strange? In the last Q investor call the very conservative Management team even stepped outside their comfort zone indicating that revenue growth is coming very soon as big multinational companies are becoming their customers. When do you think the real attention from the investment community will come, despite that the company is flush with cash?

Q: Could you comment on ECO's earnings? Thanks.

Q: Hi team,

No questions on NEXE Innovations so here is the first.
Saw a clip on BNN a few days ago and did a little research on the company. It seems to fall in the ESG realm. Can you please give a brief note on whether it is investable based on current finance metrics? Looks like a recent IPO.
How might it compare to GDNP or ECO?
Note, I have held ECO for approx 3 years patiently waiting for them to get more traction on their key products but it is slow adoption. Thought they might do something more with the introduction of the plastics ban.
Can you rate the 3 (best first) or could one simply buy a basket of the 3 to play the small cap ESG theme? Is there a better preference?

Thanks very much for the past years advice!!
Steve

Q: Could you comment on third quarter earnings and provide a quick take of your thoughts on this company?

Q: Your thoughts on ECO and recent financial results.
Thanks
John

Q: ECO has been buying back stock this year and has been doing very well lately. What are your views of the latest quarter?

Q: What 4 Canadian stocks would you buy that have the potential to appreciate quickly for a short term hold? Risk not an issue. Well balanced portfolio.

Q: With an impending one use plastic ban what small cap stocks in Canada that you follow would possibly benefit ? I am wondering if Eco.T could be one of them?

Q: It seemed like ECO had a good quarter, but the stock retreated. Would you please give your opinion on the year end numbers, and future prospects? Thanks

Q: What do you think about ECO as a small cap investment opportunity? Growth looks good to me and their cash balance is almost half the market cap. I'm sure there are more things to consider though.

Q: Could you please provide your assessment on their Q2 and YTD results that were released last night?

Keep up the excellent work.

Q: Regarding Doug's question I would note that James Hodgins made some very positive comments on Friday about it on BNN.

Q: What is causing the recent activity in EcoSynthetics ?