skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. BDT: Couldn't retrieve your response to this question previously so am re-asking for your thoughts on these 2 small cap companies? [Bird Construction Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Couldn't retrieve your response to this question previously so am re-asking for your thoughts on these 2 small cap companies?

Thnx
Dave
Asked by David on November 05, 2024
5i Research Answer:

MCB is up 57% the past month and 85% the past three months. It reported results in early August, with profits doubling and revenue growing 23%. Sales growth was driven by the strong adoption of its FMS equipment and the delivery of wellbore equipment, as energy exploration activity picked up, leading to a stronger backlog and revenue growth projections. It is a small company ($100M market cap) with decent free cash flows, a reasonable valuation of 12X trailing earnings, and rising profit margins. If it can continue to capitalize on the adoption of its equipment, we could see the name continue to perform well, however, it has had a substantial run in recent months, and we would not be surprised by some profit-taking from investors. BDT: The stock has doubled in the past year and is now 15X earnings. Market cap is now firmly above $1B ($1.6B) which can generate new interest. Earnings forecasts are solid. It can be cyclical, and has had annual losses at times in the past. But it is clearly on a roll right now, and we would be OK with buying a small position. We might start at a half position after its big gains.