So I've done some more research, and am a little disappointing with what I am finding.
Firstly, the way these guys are burning cash, I'd be surprised if we last 2 years before a CR, its more likely 1 year or less. Whats more concerning is the fact that even with all these new buildings in the portfolio, revenue remains well below expenses. Moreover, in the recent 4c, it is mentioned that in order for sales to stay in line in the second half of this year that several pending contracts need to be won. So even if they win these contracts we are still well in the red, this is no exciting feat! So clearly, some significant change is needed. I have a few thoughts...
These guys are still sitting on a pile of cash, so some opportunity for investment. They need to team up with either government bodies or companies with large numbers of buildings to have the software/hardware installed for FREE in as many buildings as possible. With their new technology to monitor the actual use and savings of the amount of electricity used, the income to BIQ will come as a percentage that the buildings saved in electricity expense, perhaps 20-50% of this to be paid to BIQ. So everyone wins (except the electricity company). The building has nothing to lose.
I believe it is possible for this company to turn around, but would need to find a way to get a large number of buildings signed up ASAP. I am sure management are working on this as a matter of urgency, so hopefully they'll keep the market more informed, as so far I feel transparency hasnt been great.
BIQ Price at posting:
9.0¢ Sentiment: None Disclosure: Held
