Thanks Matt! Actually, CNO was up 60%+ YTD and I wanted to include it in the list, but it was the only one that didn't exactly fit in any of the categories. But yes, I agree it's a good one to watch! I've also been following PYR for a long time, but the lack of consistent revenue growth and profitability is keeping me on the sidelines for now. Thanks for your comment!
On the 3D Printing/Additive Manufacturing side, have you looked at Tekna? They're based in Sherbrooke (QC) but listed on the Oslo stock exchange. I'm not sure if this is similar but perhaps you'd want to compare.
I have looked at Tekna. With PyroGenesis, they are the inventors of Plasma Atomization. GE Additive uses the legacy technology that PyroGenesis created (and sold years ago to Arcam/AP&C). With PyroGenesis' NexGen Plasma Atomization System, it has a 2-wire feedstock (ie. 2 rolls of titanium wire fed simultaneously into the NexGen system's Reactor). This wire is electrically charged first, leading to high production rates, less waste, and uniform particle sizes. I believe once PYR's NexGen system is qualified, it will lead to an increase in powder orders (leading to recurring revenue). Very interesting the history of PyroGenesis and their 3D Powders/Additive Manufacturing division.
backed by vrg capital (the family office behind clarus). Its main product trubar has grown from 1m in sales per year in 2021, to $45m forecasted in 2024.
I looked at it recently as I was considering participating in the financing. It's still somewhat in turnaround mode (closing a legacy business, recap of the balance sheet), so I couldn't gain enough conviction yet. But Trubar definitely looks like it has potential. I'm watching it but no position yet!
Could OneSoft Solutions (OSS:CVE) be close to fit in the first group? Their market cap is approaching the critical 100M level and ajusted EBITDA 0 (today's info).
In terms of business quality I would say yes for sure. The ''issue'' (which isn't really one in my opinion) is that they don't need to raise capital, so it's unlikely that investment banks will help the discovery process with analyst coverage, investor introductions, etc.
Have you looked into any of the companies listed in the Mars incubation hub in Toronto? Would they meet your criteria for investment? How would an investor be able to invest in those companies? Is there an ETF of those companies? Thanks.
Hi Ishwar, unless I'm mistaken, these companies are probably all private? I only invest in the public market, so these companies would be off limits for my fund's mandate. As far as I know, there is no ETF to invest in a basket of private startups. You'd have to contact MaRS directly to inquire about investing in these companies.
Great article Mathieu. 2 other companies to add to one's watchlist are California Nanotechnologies Corp. (V.CNO) and PyroGenesis Canada Inc. (T.PYR).
Thanks Matt! Actually, CNO was up 60%+ YTD and I wanted to include it in the list, but it was the only one that didn't exactly fit in any of the categories. But yes, I agree it's a good one to watch! I've also been following PYR for a long time, but the lack of consistent revenue growth and profitability is keeping me on the sidelines for now. Thanks for your comment!
You're welcome. Definitely keep an eye out on PyroGenesis. Upcoming catalysts include the qualification of PYR Additive (the 3D Printing/Additive Manufacturing business division) and the work that PyroGenesis is doing with Constellium. There is definitely lots going on at PYR. https://www.constellium.com/news/constellium-and-pyrogenesis-partner-to-advance-plasma-burner-technology
On the 3D Printing/Additive Manufacturing side, have you looked at Tekna? They're based in Sherbrooke (QC) but listed on the Oslo stock exchange. I'm not sure if this is similar but perhaps you'd want to compare.
I have looked at Tekna. With PyroGenesis, they are the inventors of Plasma Atomization. GE Additive uses the legacy technology that PyroGenesis created (and sold years ago to Arcam/AP&C). With PyroGenesis' NexGen Plasma Atomization System, it has a 2-wire feedstock (ie. 2 rolls of titanium wire fed simultaneously into the NexGen system's Reactor). This wire is electrically charged first, leading to high production rates, less waste, and uniform particle sizes. I believe once PYR's NexGen system is qualified, it will lead to an increase in powder orders (leading to recurring revenue). Very interesting the history of PyroGenesis and their 3D Powders/Additive Manufacturing division.
what do you think of Simply Better Brands (TSX-V: SBBC)?
backed by vrg capital (the family office behind clarus). Its main product trubar has grown from 1m in sales per year in 2021, to $45m forecasted in 2024.
I looked at it recently as I was considering participating in the financing. It's still somewhat in turnaround mode (closing a legacy business, recap of the balance sheet), so I couldn't gain enough conviction yet. But Trubar definitely looks like it has potential. I'm watching it but no position yet!
Could OneSoft Solutions (OSS:CVE) be close to fit in the first group? Their market cap is approaching the critical 100M level and ajusted EBITDA 0 (today's info).
In terms of business quality I would say yes for sure. The ''issue'' (which isn't really one in my opinion) is that they don't need to raise capital, so it's unlikely that investment banks will help the discovery process with analyst coverage, investor introductions, etc.
One other company that comes to mind is Firan Technology Group (T.FTG). In the aerospace and defense sectors.
Yes good one. It could still probably qualify as deep value even after the 150%+ move since 2023. It looks like it's still trading at only ~6x EBITDA?
Hi Mathieu,
Have you looked into any of the companies listed in the Mars incubation hub in Toronto? Would they meet your criteria for investment? How would an investor be able to invest in those companies? Is there an ETF of those companies? Thanks.
Hi Ishwar, unless I'm mistaken, these companies are probably all private? I only invest in the public market, so these companies would be off limits for my fund's mandate. As far as I know, there is no ETF to invest in a basket of private startups. You'd have to contact MaRS directly to inquire about investing in these companies.
Thanks Mathieu. I did try contacting them but got no reply, so I wondered if you had any more information than I did. Thanks again.