Carfinco Adds $25 Million And ATB Financial To Its Syndicate

TSX: CFN

Shares outstanding: 26.4 million

Shares fully diluted: 26.4 million

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Carfinco has just announced that Alberta based ATB Financial has joined the company’s banking syndicate. Carfinco’s credit facility has also been increased to $205 million from $180 million.  ATB is the largest Alberta-based deposit-taking financial institution with assets of $33 billion.

There have been no other changes to the facility’s financial covenants. ATB joins existing members, Bank of America, N.A., Bank of Montreal and Wells Fargo.

The addition of ATB to the syndicate has allowed Carfinco the ability to issue 72 month contracts for clients with higher credit scores and effectively compete in a lower interest market.  Until now, the Company could only issue a 60 month contract.

Carfinco’s CEO, Tracy Graf was quoted: 

"We are very pleased to add such a strong Alberta institution to our banking syndicate. The $25 million increase in the facility gives us the flexibility to fund our various financing programs and will assist in achieving our targeted organic growth rate of 15% to 20% per year on the finance receivable portfolio."

Below is a history of the increases in facility size:

•      February 2008: Increased facility from $65mm to $85mm and added Bank of Montreal to syndicate

•      December 2008: Wells Fargo Financial Corporation Canada added to syndicate

•      June 2010: Increased facility from $85mm to $105mm

•      April 2011: Increased facility from $105mm to $130mm

•      October 2012: Increased facility from $130mm to $180mm

See full news release here...

CEMATRIX Confirms Record First Quarter Sales

CEMATRIX Corporation

CVX – TSX Venture
Shares Issued: 33.4 million
Fully Diluted: 36.7 million

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After achieving an annual sales record last year, CEMATRIX surged into 2013 setting a company record for Q1 sales which reached $1.998 million, a significant increase from the $336,991 achieved during the same timeframe last year. This jump in revenues is of particular note considering the company’s industry is seasonal in nature with most activity typically occurring from May through October.

Additional highlights from the Q1 financial results include:

• $1.2 million of sales orders were added during Q1, totaling $5.1 million in contracted projects so far for 2013, all of which are expected to be completed this year.
• Continued industry diversification with $4.1 million in infrastructure and $1 million in the Alberta oil and gas industry.
• An agreement with the Business Development Bank of Canada provides an additional $530,000 of capital expenditure financing and the company’s financing loans will be superseded into a new loan, totaling $1,406,000. $1,137,000 of this loan is available and will support equipment additions.

To view the news release, please click here....

Neptune: Class Action Dismissed & US Patent Update

Neptune Technologies and Biorresources

TSX: NTB – NASDAQ: NEPT

Basic Shares: 60.0 million

Fully Diluted: 67.5 million

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Earlier today, Neptune issued two news releases, the first was titled “Class Action Lawsuit Against Neptune Dismissed”, which announced that the Class Action Lawsuit filed against Neptune in December 2012 by Robbins Geller Rudman & Dowd LLP (RGRD) was voluntarily dismissed by the plaintiffs.

 

According to management, even though there were a number of other law firms that announced intention to investigate and/or pursue class action lawsuits, RGRD was the only one that served the company.

 

Click here to view the news release.

 

The second release today was titled “Neptune Responds to Aker’s Continued Attempts to Deflect Attention From Its Sustained Patent Infringement.”

 

The news release provides an update on the United States Patent and Trademark Office’s (USPTO) re-examination of Neptune’s Patent No. 8,030,348. It states that the USPTO issued Neptune a NON-FINAL Action Closing Prosecution (ACP).  Therefore, according to management, Neptune has one month to submit additional arguments stating its position before the USPTO renders a final decision.

 

"There are unresolved issues still outstanding, including new information filed by Aker, that Neptune has not had the procedural opportunity to rebut", highlighted Benoit Huart, Director of Legal Affairs at Neptune. "We strongly believe that once this information is rebutted, the USPTO will be better placed to confirm our position."

 

To view the patent news release, please click here.

 

FLYHT Announces Half Million Dollar Contract With A Maldivian Airline

FLYHT Aerospace Solutions Ltd.
TSX Venture: FLY
Shares Issued: 140,386,166
Fully Diluted: 179,132,626
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Today FLYHT announced that it has signed a contract with a scheduled Maldivian airline that provides service to the Republic of the Maldives, an island nation in the Indian Ocean. The contract requires FLYHT to install the AFIRS 220 on one Boeing 757 and AFIRS 228B on two Boeing 767 aircraft (all necessary Supplemental Type Certificates are already in place). The total value of the contract will be approximately $480 thousand USD.

 

According to the news release, “The customer will benefit from all AFIRS 220 features including automated Out, Off, On and In times, airframe and engine exceedances, flight tracking and satellite voice communications.” This is significant because each feature that a customer chooses adds to the amount of monthly service fees FLYHT charges. Traditionally those fees range from $500 - $2,000/month/aircraft.

To view the news release, please click here....

CEMATRIX Lands New Business In The Seven Figures

CEMATRIX Corporation CVX - TSX Venture

Shares issued: 33.4 million

Fully diluted: 36.7 million

With expected strong first quarter sales, CEMATRIX has maintained the momentum with today’s announcement that the company has secured $1.2 million in new contracts for oil sands and infrastructure projects.

The new deals bring this year’s total contracted work to $5.1 million with management in hot pursuit of a number of other projects. According to CEMATRIX President and CEO, Jeff Kendrick, a significant portion of the contracts are expected to be completed in the first half of 2013.

To view the news release, please click here...

FLYHT Conference Call Now Available Online

FLYHT Aerospace Solutions Ltd.

TSX Venture: FLY

Shares Issued: 140,386,166

Fully Diluted: 179,132,626

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For those who missed FLYHT’s first quarter conference call, it is now available on FLYHT’s website.

Here are some key highlights from the conference call:

• FLY is pleased that revenue continues to grow while R&D expenses are tracking down as planned.

• Overall revenue increased 54% to $1,717,136 compared to Q1 last year.

• Sales revenue increased 317% and services revenue increased 320% compared to the same period last year.

• Net loss for the 1^st quarter fell by $1.2 million compared to last year.

• AGM was yesterday and it was recorded. Expect to see it on FLYHT’s website tomorrow (Thursday May 9^th).

• Final tranche of financing is expected to close in the next week or two.

• Still on track to be cash flow positive by the end of this year.

• Aireon (Iridium and NAV CANADA) will be flight tracking using the new Iridium system, which is to be launched in 2015 -2016. FLY is working with them to be part of that solution.

• 228S is currently being certified by Airbus to be a component of FANS (Future Air Navigation System.)

• Pilots are starting to use iPads as electronic flight bags in the cockpit and FLYHT is selling data connectivity to them.  

• NetJets has gone live with three AFIRS units. 10 in total are expected to be activated in the next three or four weeks.

• Four major opportunities for FLYHT:

1.       L-3 contract to supply Airbus;

2.      Mandate in China to have sat-com on all aircraft by the end of 2016;

3.      C-130 upgrade program and  working with four integrators;

4.      Business aircraft market, primarily with NetJets.

To listen to the archive of the conference call, please click here.

Carfinco Notches Strong Start To 2013

TSX: CFN

Shares outstanding: 26.4 million

Shares fully diluted: 26.4 million
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With yesterday’s release of record first quarter results, Carfinco has once again proven its ability to deliver on its business model.  Net earnings were $5 million, an 8.5% increase from the $4.6 million for Q1 2012, and finance receivables were at $187.1 million, a 20.6% increase over the $155.1 million in Q1 2012.

2013 is off on the right foot as subsequent to quarter end, the company saw April loan originations rise to a record $15.2 million.

Interestingly, management pushed hard on one particular message being that the market was not appreciating its normal annualized loan loss rate.

Following the release of the 2012 yearend financial and the fourth quarter in particular, the stock fell to the $9 range from more than $11. The concern was that the annualized loss rate was 15.1% in Q4, which was up from 12.8% in Q3, 2012. 

What management focused on in the release was that a 15% loss rate falls under its expectations of between 13% - 16%.

In the past, the company experienced a low of 11.2% in Q2 2012, but also a high of 20.7% in Q2, 2009.  Of course, there is a continued strong focus from management to minimize losses and it was noted that certain credit policies across the country have been modified to reflect geographical characteristics.

It was also mentioned that Carfinco management sees several opportunities to expand its market share and presence in Canada.  These include continued growth of its tiered financing programs, as well as potential acquisition opportunities, which could be funded from the proceeds of its recent $17 million financing.

Highlights of Q1 include:

• Earnings per share of 20 cents;
• Dividends to shareholders of 12.0 cents per share;
• Return on shareholders’ equity of 44.7%;
• Loan originations of $36.6 million, up 12.9% from the first quarter of fiscal 2012;
• Record finance receivables of $187.1 million; and
• 31+ day delinquent accounts for the first quarter of 2013 of 3.3%.

To see the full news release, please click here...

Insider Buying Expected In Response To TSX Bulletin

Pure Nickel (TSX:NIC)(OTCBB:PNCKF)

Basic Shares: 68.1 million

Fully Diluted: 73.1 million
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This morning The Toronto Stock Exchange issued a bulletin on its initiation of a review of Pure Nickel and its listing criteria.  Following the bulletin, Pure Nickel responded with clarification that it meets all of the listing requirements with the exception of market capitalization.

What does this really mean?  Pure Nickel is currently trading at $0.03, giving it a market cap of just over $2 million.  The exchange requires a market cap of $3 million which equates to an increase in share price needed of $0.015. 

In context of the fact that it would take very little to meet the listing requirements, we expect to see insider buying start tomorrow morning based on a discussion today with management. Insiders are in a 24 hour blackout.

The worst case scenario is that the company would apply for a listing on the TSX Venture Exchange if it doesn’t meet the TSX minimum listing requirements over the next few months.

The company is suffering from the same malaise that has swept through the junior resource sector that has seen valuations decimated. However, unlike many junior companies, Pure Nickel is sitting on cash and has a big brother partner in Japanese conglomerate ITOCHU, that continues to fund one of its projects at MAN, Alaska.

See today's news release here...

Argex’s Enrico Di Cesare Provides Insight Into 2013 World Titanium Dioxide Summit

Argex Titanium Inc.  

RGX - TSX Venture
Shares issued: ~ 115 million
Fully diluted: ~ 140 million   ************************* 

We recently caught up with the Argex’s COO & VP Technology, Enrico Di Cesare, on his way home from Spain, where he spoke at the 2013 World Titanium Dioxide Summit. Grant Howard, President of the Howard Group, spoke with Mr. Di Cesare about his experience and observations at the Summit.

A number of other topics were covered in the interview, including a recent Wells Fargo update on TiO2 that favourably mentions Argex’s presentation at the Summit, as well as where Mr. Di Cesare expects Argex to be in a year.

To view the PowerPoint presentation Mr. Di Cesare shared at the Summit,  please click here.

Click here  to view the recent Well Fargo Titanium Dioxide update.

Click here  to access the seven minute interview.

Analyst Says Buy Carfinco Now – Is An Acquisition Coming?

TSX: CFN

Shares outstanding: 26.4 million

Shares fully diluted: 26.4 million
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In mid April, Carfinco announced closing its first equity financing since 2007, putting $17.3 million in the coffers at $9.75 a share with 1.771 million new shares being issued.

In the news of the financing closing, Carfinco mentioned that the funds would be used to reduce indebtedness, for general corporate purposes, and for potential future acquisitions. 

Analyst Fred Westra of Industrial Alliance today released updated coverage on Carfinco and he believes that not only should investors be looking to accumulate stock on the current price weakness, but he also has an expectation that the financing will be ultimately used in support of an acquisition.

Mr. Westra mentions in the report that he believes Carfinco is an excellent Company with sustainable ~20% loan growth; one of the best efficiency ratios in the lending space; superior capital allocation with an ROE of 52.2%; solid risk management; and a 5.8% dividend yield.  He urges investors to accumulate shares at this price and targets Carfinco at a conservative $11.50,  ~30% from where it is trading today.

See full report here...

FLYHT Receives Order For Seven AFIRS Units

FLYHT Aerospace Solutions Ltd. 

TSX Venture: FLY

Shares Issued: 140,386,166

Fully Diluted: 179,132,626

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Chalk up the sale of another seven units. This time an unnamed “major avionics integrator” has ordered AFIRS 228’s for seven Lockheed C-130 Hercules aircraft. The value of the hardware portion of the deal is in excess of $250,000 for AFIRS 228 units, as the integrator provided wiring etc. as part of their work. The service agreement has yet to be negotiated, however using the 2012 average revenue per aircraft of $1,348 (according to its April 2013 investor presentation, slide 16) the overall monthly revenue could be just under $10,000.

 

FLYHT states in the news release, “Globally there are more than 5,000 C-130 aircraft in operation and a majority of those aircraft will likely require avionics upgrades in the next few years.”

 

Management believes C-130 upgrade program can be a significant sales driver. According to its April investor presentation (Slide 21) the C130 upgrade program is what the company calls one of four “Company Making Opportunities”.

 

To view the April 2013 presentation, please click here.

 

To view today’s news release, please click here.

Neptune An “Absolute Table Pounding Buy!”: Alex Ruus On BNN

Neptune Technologies & Bioressources
TSX: NTB - NASDAQ: NEPT
Basic Shares: 60.0 million
Fully diluted: 67.5 million

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On Canada’s Business News Network, long time Neptune investor Alex Ruus, Portfolio Manager & Executive VP at BluMont Capital was a guest on the popular show Marketcall.   A caller asked Mr. Ruus what he thought of Neptune Technologies. His response, “Triple buy on this one, this is absolute table pounding buy. It’s my top small cap pick. They got phase II data coming in the next six months, that’s going to catapult the stock up multiples."

 

Click here to view the segment. He talks about Neptune at the 7 minute 50 second mark.

Nemaska & The Howard Group At The End

Nemaska Lithium Inc.
TSX-V: NMX OTCQX: NMKEF
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While Nemaska Lithium still has a long way to travel on the road to reaching production, it has accomplished a great deal since we started working with the company last July.

A look at HG’s past 21 blogs paint a chronological picture of a company that  has the potential to be something special.  Unfortunately, Nemaska along with so many companies in the junior resource sector are dealing with funding and valuation issues and it is a constant challenge to move forward in a timely manner.

Members of The Howard Group and the associated Insight LP II hold a collective high six figure position in Nemaska.  

IWG’s Growth Gaining Momentum

IWG Technologies (TSX-V: IWG)

Basic Shares: 37.6 million

Fully Diluted: 39.7 million

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IWG released its second quarter financials for fiscal 2013 showing that management’s solid focus on earnings and growth are paying off.

Revenue was up 25% over last year’s Q2 at $1.84 million while income was up 400% at just over $450 thousand. This year’s second quarter results provided net earnings of 0.7 cents per share compared to 0.3 cents per share the previous year, or 1.0 cents compared to 0.6 cents on a year-to-date basis.

“Revenue has shown steady growth in existing contracts, new products and new customers,” said Bruce MacCoubrey, President and CEO of IWG. “With the completion of the development phase of the FACC contract during the third quarter, the Company will soon be making initial deliveries of its Compact Water Systems.”

To view the news release, please click here...