Emerita & Voxtur

First of all my heart goes out to Ukraine and all its citizens. It is hard to watch the videos about what is going on in that country.

TSX recently announced its top 50 from 5 different industries. I’m glad that my top 2 positions made the list: Emerita Resources and Voxtur Analytics. Both have had an amazing run in 2021 and likely will have another superb run in 2022.

Personally, I’ve decided to stay out of the market during the war on Ukraine. Although there are some amazing buying opportunities, I just can’t get myself interested in buying anything in the market. Monetary profit from the dislocation caused by this war just doesn’t seem like the right thing at this point.

2 responses to “Emerita & Voxtur”

  1. Hi Paras,
    Thanks for your posts!
    Regarding Voxtur, I assume that part of the stock price drop is the result of macro and housing slow down…
    AFAIU the thesis for Voxtur stays the same, however I have a concern that stock price is tied to housing market performance… And some say that it will take a long time for housing market recover…
    I would like to hear your view on this subject please, if you have the same concern…

    • Guy,

      I’m not sure what is causing Voxtur stock to drop in stock price. My gut feeling is the venture exchange is a big reason. There are lot of limitations on who can buy on the venture, most institutions are limited from buying it. So it creates lot of retail investors and the retail investors are going to buy / sell as fast as they can change clothes.

      The RE is not helping but Voxtur is doing really well in this dismal RE market. They almost showed revenue growth, on sequential basis, and net profit. They also we cash flow positive in Q3.

      The inter-company receivable is also not helping. The company need to clean up the related party transactions going forward. The company is working on getting the receivable issued fixed and I think we might get it resolved in December.

      The thing w/ Voxtur is no many new buyers are going to build position in Voxtur. The exchange limits it. The company is working on getting listed on TSX. I think that will help.

      My concern is the related party transactions, showing cash flow positive, and managing expectations. The related party issues need to be cleared before major institutions will build positions. The Q3 was cash flow positive but they need to show the quarterly cash flow positive in the financials and bring it out in the PR. Everyone should know they are not burning cash and are positive in one of the worst RE markets in decades. Finally, mgmt needs to be better at managing expectations. They have in the past said and building up investor expectations. For AOL there were super high expectations. Now mgmt is realizing it is going to take time, every Q there is progress but there isn’t going to be Q where it is ‘boom’. The mgmt has also done something like that for the MSR acquisition, Blue Water. Now if Blue Water has a hiccup, investors won’t be happy.

      I think the company is executing and proving their business model. Just taking longer than expected. I think we see good stuff in Q4 and 2023. The uplisting to TSX will help and hopefully NASDAQ in 2023 will be the game changer.

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