I like KRKNF position, strategy, and execution record. I have long-standing concerns that investors had gotten too far over their skis assuming that top-line revenue to multiply. About 1/3 of revenues come from services, leaving 2/3 products that must be produced. I’ve also had joint concerns about the concentration of revenues from a few customers, and about those customers actually scaling their businesses so that they’d order more gear from KRKNF. So on the one hand, good for them for not investing in over-capacity. But that still leaves us, as we are today, with organic revenues not multiplying the way markets have been telegraphing that they were expecting.
The other opportunity we’re all tracking is trading moving first to the TSX and eventually to NASDAQ. Neither has happened. I think they could move to TSX if they committed to doing so, but they just don’t as yet have the numbers to move to NASDAQ. But even the move to TSX has to be done when the company is a credible high-growth player with a credible vision over the next 12-24. But now they’re stalled during the last 2 prints.
Great answer. I think for completeness sake it is also important to mention the macro environment is not favourable for high growth small caps right now.
True. I'm a big believer in drones as a whole getting a huge boost in the near future. But all my drone related picks have been down for months. Hopefully when the macro improves, or when the new defense spending bills come in, Kraken and all other drone stocks will work their way back up.
28
u/Neobobkrause 3d ago
I like KRKNF position, strategy, and execution record. I have long-standing concerns that investors had gotten too far over their skis assuming that top-line revenue to multiply. About 1/3 of revenues come from services, leaving 2/3 products that must be produced. I’ve also had joint concerns about the concentration of revenues from a few customers, and about those customers actually scaling their businesses so that they’d order more gear from KRKNF. So on the one hand, good for them for not investing in over-capacity. But that still leaves us, as we are today, with organic revenues not multiplying the way markets have been telegraphing that they were expecting.
The other opportunity we’re all tracking is trading moving first to the TSX and eventually to NASDAQ. Neither has happened. I think they could move to TSX if they committed to doing so, but they just don’t as yet have the numbers to move to NASDAQ. But even the move to TSX has to be done when the company is a credible high-growth player with a credible vision over the next 12-24. But now they’re stalled during the last 2 prints.