Quick Value #279 - New Management
Small-cap Canadian technology biz with a new management team quietly turning the corner... Phase 1 complete (fix) and moving onto Phase 2 (growth and capital allocation).
Today’s post:
Way overpaid for “bet the company” acquisition in 2021
New external hire CEO joined in 2023
Turnaround phase completed
Moving into capital allocation inflection / growth mode
Shares trading at 5.5x EBITDA and 7x FCF with <1x leverage
This idea came from the April 2025 Planet MicroCap conference in Vegas. It had a good story and good valuation, but I backburnered it for a while… finally got around to taking a look and liking what I’m seeing.
Quick reminder — For newer subscribers, my write-ups are meant to be a “jumping off point” for the idea generation process (i.e. a surface level review). Check out past write-ups here and my home base page here.
Recent write-ups include:
08/04/25 — My sourcing list and watchlist process
07/21/25 — ATN International high-quality small-cap telco ($)
07/14/25 — Babcock & Wilcox (BW) option-like upside
06/23/25 — Reviewing RAL spin-off and FTV RemainCo
06/16/25 — Deep dive into AIRT public HoldCo model ($)
06/10/25 — A “way too early” look at CMCSA and WBD cable spins
06/02/25 — Mid-year review of recommended ideas ($)
05/24/25 — Guide to reviewing a 10-K