While the delay of some of its revenue from the latest quarter to future quarters has negatively impacted the stock recently, it also announced new contracts in Quebec and the US totaling $55M. Part of the recent sell-off is likely due to its strong one-year return of 120%, as investors look to take profits, but also other investors might be spooked by its customer concentration given what happened in its latest quarter.
It operates in a highly cyclical industry, and so despite its cheap valuation of 5.6X forward earnings, investors have been cautious on the name recently. We remain long-term optimistic on the name, but its recent trend has been challenging for investors, and we would prefer to see price support before entering or adding to a position for now. We think encouraging results from its upcoming earnings would help support its stock price.