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Independent Reviews for Venture Investors

IBT.V - Accumulation.


IBEX Technologies Inc. (IBT.V) manufactures and market enzymes for biomedical use internationally. Clients include manufacturers of medical devices, quality control labs and academic research institutions.


The company offers high purity enzymes for in-vitro diagnostics and ELISA kits for osteoarthritis research. In addition, IBT.V also provides lyophilization services, custom fermentation services, and has a few patents.


Coverage started November 2018 with notes on June 2019, April 2020, November 2020, August 2021 and April 2022.


News Releases


June 10 - Reports Results for the Third Quarter and the Nine Months Ended April 30, 2022:


Aug. 2 - Announces Normal Course Issuer Bid: TSX Venture Exchange (“TSXV”) has approved IBEX’s normal course issuer bid (“NCIB”). Under the NCIB, IBEX may purchase for cancellation a maximum of 1,800,000 common shares, representing approximately 9.9% of the 18,198,067 shares forming IBEX’s public float. The NCIB will commence on August 5, 2022 and end on the earlier of August 4, 2023 and the date on which the Issuer completes the purchase of the maximum number of 1,800,000 common shares pursuant to the NCIB.


As of July 21, 2022, IBEX had 24,823,244 common shares issued and outstanding. The Board of Directors of IBEX believes that, at appropriate times, repurchasing its shares through the NCIB represents a good use of the Company’s financial resources, as such action can protect and enhance shareholder value. In connection with the NCIB, IBEX has entered into an automatic share purchase plan with Leede Jones Gable Inc. in order to allow for purchases under the NCIB during IBEX’s “black-out” periods, as permitted by the Securities Act (Québec). Leede Jones Gable Inc. will also effect purchases under the NCIB on behalf of the Company during non-“black-out” periods.


Nov. 10 - Report Results for the Year Ended July 31, 2022:


Dec. 15 - Report Results for the First Quarter Ended October 31, 2022:


Summary

During the period, IBEX's (IBT.V) valuation fluctuated between $0.28 and $0.85 cents.

FY21-22 revenues were up by 49% and net earning by 120% from FY20-21. IBEX also ended FY21-22 with 72% more cash. In addition, Q1 22-23 revenue were flat from Q1 21-22 along with net earning but cash went up to $8.15M.


As for the Normal Course Issue Bid, the most recent MD&A stated: After year-end and as of the date of the financial statements, 39,000 shares were repurchased and cancelled for a total of $17,568. A far cry from the possible 1.8M.


In short

IBEX (IBT.V) continue to deliver strong revenues, net earnings and build its cash position (>$8M) with no debt.


A day after the Q1 22-23 Earnings release, valuation jumped from mid-fifties to mid-eighties. Of note, the average daily volume has been much more higher since. And this occurred despite continued lower revenue guidance.


F2023 revenues are expected to be lower than Fiscal 2022 since the Company received higher than usual purchases from our customers in F2022 as they hedged against COVID-19 related supply chain disruptions. Additionally, the consumption of hemostasis tests is likely to reduce as the number of COVID-related hospitalizations decreases. Notwithstanding these factors, the underlying demand for our enzymes continues to grow.”


How does one explain the recent surge in valuation?


A Net House report suggests that Laurentian Bank Securities has been doing the bulk (83%) of the buying since the Q1 22-23 earning release. All other brokerages are net sellers but Laurentian has a sell volume of 0.

Looking at the prior year (excluding Anonymous) shows that this entity (048 Laurentian) had not purchased.

Even from December 2017 (again excluding Anonymous), it suggest that Laurentian is relatively a "newer entry". However, it is doing so at a much higher VWAP (0.69). This seems odds compared to other brokerage.

Yesterday and today were the only two consecutive day of a closing price decline. Is this trend reverting? .


Overall, there seems to be a consensus among market participants (no challengers) to let Laurentian Bank Securities accumulate at this level. One can speculate multiple outcomes but it appears to be an unusual accumulation.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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