Website
Yahoo Finance
Filing
Dec. 06, 2019
2019 Q3 Data
Price: $0.49 Shares:62m, Cap: $30m
1.Business Information
(1) History
Originally the company was called NETCO ENERGY INC. which was a resource company that ceased operation before 2009. It carried around $19m in operational losses. In 2011, Paul Andreola joined the company as a director. He held around 2% of the shares at the time. In early 2013, he became the CEO of the company.
Later in 2013 the company raised around $500k and changed its name to Brisio Innovations Inc. The company started to acquire some mobile apps. It didn't work out and incurred losses from 2013 to 2015.
In 2015, the company raised another 200k and started to invest in public microcap stocks. In 2016, it gained a massive $1.9m in investment value. It also raised another $300k in stock. In 2017, it gained $700k in investment. Raised $1.1m in stock. However, in 2018, it lost $1.6m in investment.
In 2018, it raised 5m in stock and 11m in debt to acquire a domain hosting company called namesilo.
(2) Major business.
1. NameSilo: The web hosting business has been growing very well. As in Q3 2019, it generated $7.8m in revenue and around 900k in EBITDA. It has a growth rate of around 10% per quarter.
2. Microcap Investment: It did very well in 2016 and 2017, but lost in 2018 and 2019. Currently, it still has around $2.5m in stocks and around $1.3m in bitcoin.
(3) Debt and Credit Facility.
10m debt around 11% in interest.
(4) Employee numbers
(5) Industry comparison.
(6) Major events
2. Management
(1) Key person
Paul Andreola is a very known Canadian microcap investor. He is among the top-ranked in the microcap investor club. Also, he is the partner of the small-cap discoveries newsletter.
(2) Insider ownership & Compensation
At the end of 2018, Paul holds 6.5m shares, just around 10%. His compensation in 2018 is around $50k.
3. Financial data.
4. Valuation and comments
(1) Currently, the stock is traded above 10 times EV to forward EBITDA. Not really that cheap. It all depends on whether the Namesilo business can keep growing in profitability. It seems the name hosting business will continue to do very well in the future.
(2) Currently, it owns 900k of Atlas Engineered Products(AEP.V) stock which might do very well in the future.
5. Risk
(1) The current 10m debt at 11% is quite a burden to the company. Hopefully, it can pay down and refinance it with a lower interest in the future.
(2) The investment part is not doing very well currently. It is not very active now. It might get very active in the future. It seems like to hold investment too long while missing the selling opportunity.
(3) Its biggest investment position now is 2.5m shares of ImmunoPrecise(IPA.V) which worths around $1.3m. Not sure whether the company is good or not. Also, the bitcoin investment doesn't make sense to me.
(4) The domain business is been acquired for just one year. It is still possible not performing as expected.
6. Conclusion
The company's acquired business is doing very well. However, currently, the high-interest debt is quite a problem. The current price is not very cheap. I hope there is a better price or the debt problem been solved.
7.Links
https://smallcapdiscoveries.com/
Yahoo Finance
Filing
Dec. 06, 2019
2019 Q3 Data
Price: $0.49 Shares:62m, Cap: $30m
1.Business Information
(1) History
Originally the company was called NETCO ENERGY INC. which was a resource company that ceased operation before 2009. It carried around $19m in operational losses. In 2011, Paul Andreola joined the company as a director. He held around 2% of the shares at the time. In early 2013, he became the CEO of the company.
Later in 2013 the company raised around $500k and changed its name to Brisio Innovations Inc. The company started to acquire some mobile apps. It didn't work out and incurred losses from 2013 to 2015.
In 2015, the company raised another 200k and started to invest in public microcap stocks. In 2016, it gained a massive $1.9m in investment value. It also raised another $300k in stock. In 2017, it gained $700k in investment. Raised $1.1m in stock. However, in 2018, it lost $1.6m in investment.
In 2018, it raised 5m in stock and 11m in debt to acquire a domain hosting company called namesilo.
(2) Major business.
1. NameSilo: The web hosting business has been growing very well. As in Q3 2019, it generated $7.8m in revenue and around 900k in EBITDA. It has a growth rate of around 10% per quarter.
2. Microcap Investment: It did very well in 2016 and 2017, but lost in 2018 and 2019. Currently, it still has around $2.5m in stocks and around $1.3m in bitcoin.
(3) Debt and Credit Facility.
10m debt around 11% in interest.
(4) Employee numbers
(5) Industry comparison.
(6) Major events
2. Management
(1) Key person
Paul Andreola is a very known Canadian microcap investor. He is among the top-ranked in the microcap investor club. Also, he is the partner of the small-cap discoveries newsletter.
(2) Insider ownership & Compensation
At the end of 2018, Paul holds 6.5m shares, just around 10%. His compensation in 2018 is around $50k.
3. Financial data.
4. Valuation and comments
(1) Currently, the stock is traded above 10 times EV to forward EBITDA. Not really that cheap. It all depends on whether the Namesilo business can keep growing in profitability. It seems the name hosting business will continue to do very well in the future.
(2) Currently, it owns 900k of Atlas Engineered Products(AEP.V) stock which might do very well in the future.
5. Risk
(1) The current 10m debt at 11% is quite a burden to the company. Hopefully, it can pay down and refinance it with a lower interest in the future.
(2) The investment part is not doing very well currently. It is not very active now. It might get very active in the future. It seems like to hold investment too long while missing the selling opportunity.
(3) Its biggest investment position now is 2.5m shares of ImmunoPrecise(IPA.V) which worths around $1.3m. Not sure whether the company is good or not. Also, the bitcoin investment doesn't make sense to me.
(4) The domain business is been acquired for just one year. It is still possible not performing as expected.
6. Conclusion
The company's acquired business is doing very well. However, currently, the high-interest debt is quite a problem. The current price is not very cheap. I hope there is a better price or the debt problem been solved.
7.Links
