$BC with two positive developments in the past week.
First, they tripled the size of their i-Jet Innovation Lab at the University of Illinois to support an acceleration of the Company’s ACES (Autonomy, Connectivity and Electrification) strategy
This isn’t going to have an immediate impact but shows Brunswick has an eye on the future of boating in the areas of electrification and autonomous driving
The bigger development was Freedom Boat Club (FBC) establishing its first company-owned location in Europe (this one is opening in Portsmouth, UK in Summer 2021)
FBC seems to be the primary way Brunswick is hoping to combat cyclicality.
Scotiabank goes from $13 CAD -> $11.50 CAD ($9.10 USD)
Raymond James goes from $14 CAD -> $12 CAD ($9.55 USD)
Waiting to see their model updates once I get the reports, but to me the PT adjustments are due to it being irregular to have a PT >100% above the current price and not have the stock as one of your top picks. (as Stifel's 18 CAD PT was)
The average of the PTs is still 52% above the current share price so there's still a lot of optimism from the analyst community.
Per TIKR, the Q3 topline estimate rose 2.6%, but so far Q4 estimates have declined 4%.
The people surprised by the selloff post-positive FDA news in $TMDX and $NNOX must not have been shareholders in $MYOV over the past 4 months
Joking aside, there's a lesson to be learned here for some.
With the big positive catalyst now absorbed by the market (whether you think it was properly priced in or not), it seems marginal shareholders now want to focus on cash flows.
All have enormous potential, but the first positive quarter
of FCF for each is currently projected to come in the following periods:
$NNOX: early 2023
$MYOV: late 2023
$TMDX: late 2022
$BC acquires 6 New York are Freedom Boat Club locations. These clubs have >600 combined members and membership has grown at a near 30% YoY rate for the past 3 years
Knox comes from her previous role as Global Head of HR for the Mixed Reality / AI Platform & Cloud Security / Identity division at Microsoft (8,000 person division) and previous held executive HR roles at Twitter, Sony, CBS Interactive, PepsiCo, Disney, and Verizon.
Knox will focus on continuing to align compassionate and ethical AI as a foundation of LivePerson's culture.
Ethics in AI is an increasingly important area as use cases become more sophisticated, so I like that the head of talent development is directly focusing on this space.
$GDDFF $FOOD $FOOD.T with a big topline beat (all metrics in CAD)
Revenues up 71% YoY to 100.7M (9.75% beat off of the 91.75M estimate which was adjusted down from 93.75M last week)
Gross margin up 14 bps to 30.44% (more on this below but in-line with consensus)
Delivered positive Adj. EBITDA of 0.5M (backing out SBC this becomes 0.9M EBITDA vs. -3.4M in Q2 2020)
FCF of 0.3M without adding SBC vs. -7.3M in Q2 2020
$163M in cash on the balance sheet (33% of market cap)
The most important note from the call:
Gross profit impact from 50% off grocery promo in January was 3-5M. This implies gross margin would have likely been > the Q1 32.3% number had the promo not happened (lower revenues + the above impact)