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Microcap & Penny Stocks : Stateside's Canadian Microcap Board
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To: jorjen who wrote (1324)11/13/2015 1:42:36 PM
From: ayeyou3 Recommendations

Recommended By
El Canadiense
kidl
Topdog

   of 1728
 
BRM and STT are high on the list. Both had curve balls in their last quarterly reports and despite decent increases in sales did not match previous quarters net earnings. They were different reasons as to why bottom line was affected but end result was BRM going from $700K to $300K and STT from $600K to $100K in net after tax earnings. Of course this resulted in a pullback and I expect the sentiment to pull them a little further down before mid December at which time I will a buyer.

Neither one had a real huge problem STT had a cost overrun on a large tank job and that cost them. The tank division manager was let go and they are moving on. I expect them to get back on track for Q4 and continue the stellar performance they had in first two quarters. They have a large backlog and bids out on some fat new contracts so they will be fine.

BRM had a large increase in their SG&A (Selling, General and Administrative Expenses) numbers and that caused the lower net earnings. They made a $347K debt and interest payment this quarter so I assume that was it but no explanation really in the MD&A. Add that back in though and they were right on track. BRM backlog increased to over $17 mil in the quarter so expect them to keep rocking along in the sales numbers. Again I see them totally getting back to the nice numbers seen in Q2 and share price will follow.

Both BRM and STT are green companies involved in environmental clean up and or preventive services so I like the sector considering public opinion and governmental policies.

I have owned both but took my profits on a BRM double plus and sold my STT on the poor quarterly with the plan that I have just laid out...buy them back cheaper..It was a tough decision to sell the STT as I was at about 300K in shares and they took some time to put together. Looking back at it now it might have been better to hold because the company is buying back shares like mad and really took the sting out of the poor quarter report.

BTW both have nice tight share structure and when good news comes out they MOVE....

There will be other bargains to pick up I am sure but those two are top of my list....If EUO goes any lower they may have to fight it out though. :)
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