PTE.v/PTEFF C$1.11 Pioneering Technologies Corp
Posted: Monday Aug 21 12:18:31PM 2017
PTE.v +.04 to C$1.10 Had to chase a bit to buy my position but I decided to buy back into Pioneering Technology. I sold in May because I was afraid that outstanding warrants would cause prices to fall further. Price dipped below C$1 a few times but I think the future is very bright for this small cap company. Pioneering has protection via patents and upcoming regulations will prevent new ranges from being sold without some kind of temperature limiting technology installed in 2019. That's a couple years out but I think Pioneering will continue to penetrate commercial markets because it's in the economic interests of commercial entities to install this company's products. They will save on insurance and the risk of damage from a cooktop fire.
Before the regulations coming into effect, there are some things to consider. It looks like a total positive for PTE.v but there could be negative changes. First, the big range manufacturers will likely drive a tough bargain for PTE. They will require PTE to lower their very high gross margins before they buy in volume. This could slow the rise in profitability that investors might expect. PTE will also need additional financing to finance increased manufacturing volumes. This will increase financing expenses and overall SG&A.
That said, I expect that these manufacturers will have to move fairly quickly. They can't wait until 2019 to make a decision. They have to be sure that they can build around PTE's patents very soon OR they will have to contract with PTE for their new sales needs in 2019 and beyond. PTE will have to increase their manufacturing capacity to meet the increased demand. That will take time and money.
I expect PTE.v to be a very good investment over the next two years and beyond. As I discussed above, I am expecting gross margins to decline but gross sales to soar. PTE is not cheap, selling for around a 20 p/e. But I expect sales to soar after 2019. I also expect sales in Europe to provide positive news.
I am always looking for high growth situations with profitable companies. I would prefer to find fast growing cheap companies but in this case you would have had to buy in early 2016 to really benefit and you had to assume at that time that profitability was coming. Waiting until PTE had achieved solid profits has cost me profits but I think the regulatory changes are the big change that ensure that PTE can continue it's recent high growth(80% vs 2016) and still be very profitable..
Posted: Thursday May 4 8:22:31AM 2017
PTE.v +.04 to C$1.11 sold out of PTE today. I did a poor job of DD before buying. Great company with a great product but financing at C$1.10 sucked the price down to that level AND there are 3.5 million warrants out there with a .25 strike price that expire in 9/17. So anyone with .25 warrants has 4 months to get the certificate converted to a saleable form and deposited to their brokerage account. Since they only pay .25, they will sell at any reasonable price to collect their profits. I think that will put a lid on PTE until after 9/17.
Posted: Friday Apr 21 11:22:35AM 2017
PTE.v +.05 to C$1.05 Pioneering Technology Corp has been falling all month. Should have realized that the financing at C$1.10 would cause selling towards that pricing level. I bought in early March at an avg of C$1.23. Will be underwater for awhile but potential seems very high here. Company seems to be getting good acceptance in the US and the future for senior housing and hotels seem very high.
Posted: Thursday Mar 2 8:12:42AM 2017
PTE.v -.04 to c$1.27
Q1 results .02 eps good improvements over Q1 last year
Posted: Wednesday Mar 1 6:37:55PM 2017
PTE.v +.06 to C$1.31 Pioneering announced a financing at C$1.10 and the price tanked that day to C$1.18 but I missed buying any. Bought some more today at C$1.30. Obviously I missed the big runup this year(a ten bagger!!!!!) but I think the opportunity is still in front of PTE.v.
Here is the financing PR:
Here is an interview with the CEO:
Posted: Thursday Feb 16 7:46:45AM 2017
Posted: Friday Jan 13 8:46:28PM 2017
This is one I missed. I researched it several years ago but the sales were slow and losses were common. I passed but they appear to have moved past breakeven sales volume and are generating pretty good sales volume. Earned .03 eps last year and .02 in the last qtr. Pioneering sells burners for residential ranges and institutional living units that have a safety cutoff that prevents fires due to range fires. I have personally burned up a number of pots and tea kettles so understood the value of this invention immediately. The reason that Pioneering is making progress is that they have made inroads in selling this device to senior living apartment builders and other institutional owners, like hotels.
The market is big so as they become a common product in multi unit buildings, their sales could soar much higher than current levels.
Here is a recent PR that sent the stock up.