The most fun part of my (many) job is interviewing the entrepreneurs, the CEOs behind the companies that I profile here on my website.
Without exception, they are driven, talented people who have so much energy I can’t help but caught up in their stories—and I pass that enthusiasm along to you my readers.
If you like their stories, you have an opportunity to be with these CEOs as shareholders.
Many go on to great stock market success—I think of Kodiak Copper, Fosterville South, Tokens.com–and hey, some don’t.
And then there’s the in-between ones, where the businesses have done GREAT, but the stocks have not. The ones I’m updating you on today have MORE interesting investment potential now than a few months ago.
- ESE Entertainment—ESE-TSXv / ENTEF-OTC – profiled the last week of Sept 2022–the business here is doing FABULOUS. They just announced YE 22 revenue of CAD$58.8 million—up over 400%!!! Growth is supposed to cost money but they only had a small EBITDA loss of $180K – that’s 0.003%. Q4 revenue was up to $19.86 million, from $15.9 million in Q3. Debt is a paltry $500,000.
I think the story here for 2023 is a big improvement in cash flow. ESE acquired a lot of companies in 2021 & 2022, and it has taken time for that M&A to amortize through the financials. When they report Q1 at the end of March—two weeks from now—I anticipate higher quarterly EBITDA than ever before.
This is happening while the stock trades at all time lows of 30 cents per share. There are only 79 million shares out and management/insiders own just over 20%.
- Lithium Chile LITH-CSE / LTMCF-OTC – I profiled this lithium play in early November 2022 with the stock in the 60-65 cent range—because it had so many similarities to Neo-Lithium, another South American lithium brine play that was bought out by a Chinese group for over $6/share (Neo Lithium was almost a 10 bagger from my initial purchase price.)
Geologically, the grade, size and impurities at Lithium Chile were close to what Neo-Lithium had, AND—their salar was MUCH more porous, meaning it would cost much less to drain the lithium out.
Then the strangest thing happened: the day I wrote it up, the Canadian federal government singled out Lithium Chile in a press release saying its Chinese shareholder (40% of the company!!!) must sell/divest.
That created a bidding war for that block of stock, and once it was placed, the stock took from 60 cents to $1.08 quickly—more than 70% move up—and the company announced JUST LAST WEEK that it was negotiating a sale of their ARIZARO salar.
- Hypercharge – HC-CSE / HCNWF-OTC – CEO David Bibby has done an incredible job here. Two years ago this was an idea. Now they have over 500 chargers installed—in 8 Canadian provinces and 5 US states—and the size of contracts they’re bidding on has gone up 25%. Bibby’s service-oriented culture is attracting a lot of attention in the industry—businesses that already have many chargers installed are inquiring what it would take for Hypercharge to take over.
The stock has had a quiet time between Q3 and Year-End financials, which will be coming out shortly. The big driver for the stock however will be new contracts, not old financials.Bibby’s team is convinced they will be making a huge leap in revenue in 2023, and more than quadruple 2022 installs.
The Market is willing to pay US$20,000 per charger in take-over bids. Divide their US$30 million market cap right now and that’s just 1500 chargers.I’m betting they’ve installed a much higher number than that by YE 23.
- Zinc8 Energy Systems ZAIR-CSE / ZAIRF-OTC – profiled in Zinc8 just received its SECOND $10 million in non-dilutive capital from a US gov’t—this time the state of New York. Since I profiled this company in January 2023, they have received CAD$23 million to help move the company to upstate NY to begin making their zero emission energy storage product.
The company’s Job 1 now is—get contracts!New York City has mandated thousands of their buildings to meet stringent energy conservation levels by 2024—and Zinc8 has won TWO competitions in NY State for their low cost product—and the high profile support of Senate Majority Leader Chuck Schumer who is from New York.
The business is doing GREAT.
So there’s four junior companies that are moving the ball down the field–but the stocks aren’t reflecting that just yet.
A fifth, DevvStream Holdings (DESG-NEO) has seen its share price move up above the 65-70 cents per share it was when I explained the company in January (hitting a recent high of 92 cents). They have announced two contracts to create, manage and monetize carbon credits for two large agricultural companies. Carbon credits are more lucrative than most (and I mean pretty much ALL) investors understand.
At today’s market prices of just $15-$20 per credit, many businesses create more value in the carbon credit market than they do in their core business! I’m not kidding. I’ll explain it all in an upcoming story. And DevvStream is front and center in that space.