Please provide feedback on the most recent quarter (ZDC). Also, would you hold with a half of a position or buy for a full position (4%)
Thanks
Jim
In Q3 2024, ZDC reported revenue growth of 42% to $9.1M compared with $6.4M for the same period in the prior year, largely due to strong demand for security towers in Canada. EBITDA also grew strongly by 49% to $3.4M. The company recently expanded its operations in the US meaningfully. Now, the US accounts for 10% of ZDC’s total revenue in Q3, and the portion is also growing strongly. ZDC indicates that the utilization rate for the fleet of security towers in the U.S. is near 100% capacity, signaling a solid growth lever going forward. We think ZDC reported very solid numbers and would be comfortable holding and buying some here, while being mindful of its small cap risks. We feel investors should size a position conservatively as small-cap names like this could be volatile.