BWLKF – The best is yet to come, am I right?

Posted on August 15, 2022 by Josh Ebben

A look back…

It was 4/1/22, I posted “BWLKF is a clear winner, am I right?. Stock was trading at $0.55, and I was about as bullish as I could be. I was in the process of making BWLKF a Core Position.

 

Why? Let’s recap.

BWLKF has a platform/solution that turns excel spreadsheets used as core business applications into managed cloud solutions. Not exactly a sexy technology platform but it’s very effective in what it does. The ability to quickly bring these excel applications onto the cloud in a cell level data structure enables all kinds of value add, specifically compliance.

This compliance value is what drove Citi to do a deal with them. The deal took months longer than expected but resulted in an enterprise license. Well worth the wait and the potential upside is still much larger than the current deal structure.

At this time, we knew they were also working with a social media company, Facebook, and in the process of working towards a large licensing deal with them.

 

So, what’s happened since?

It’s been quite the roller coaster ride! Execution continued but the market did not care. BWLKF hit a low of $0.22 on June 27th over 50% down for the $0.55 I was accumulating shares.

Here is the timeline:

4/25/22 – Signed a new contract with a Major Indian Bank. Not a huge deal but continued execution.

4/30/22 – Florian chats with CFO Charlie Glavin to re-assure our thoughts on the company. Full notes available in his Elite post.

5/8/22 – Florian discusses BWLKF in a 10-Minute podcast. We continue to be bullish.

5/10/22 – Stock is now trading at $0.39. Ouch!

5/10/22 – Public BWLKF – Call with Management. Management confirmed continued execution, reassured us they are not raising capital at current prices. Expressed excitement about upcoming Q1 results.

6/14/22 – Stock is now trading at $0.25. Double Ouch!

6/14/22 – Florian posts an update from his email exchange with CFO Andy Glavin in his Elite channel.  Take away, TIME TO BACK UP THE TRUCK. Many of us in the Elite channel, including myself, made BWLKF an overweight position at this time. Market cap was about $12M, just insanity for a company executing and in no need of funding.

6/14/22 – Florian posts in the Breakouts and Trade Ideas channel about the Inverse Hammer on volume. I am not a technical guy but at this point I will take anything pointing towards a change in price direction. Accumulating shares in the $0.25 range felt like a gift but my core position was down over 50%. Not exactly fun.

6/27/22 – BWLKF hits a low of $0.22. Puke! Plug my nose and buy some more. At this point I will admit I started second guessing my perspective on BWLKF. Maybe other’s concerns about BWLKF being too small was right and it would require much more execution before anyone would care. These people weren’t negative on the company but just giving possible reasons why the stock could fall this low and potentially stay there.

6/29/22 – Fourth Quarter and Fiscal 2022 Financials are reported. The numbers were excellent, and they initiated a very bullish guidance for the upcoming fiscal year. Stocks jumped to $0.35! Let’s Go!!!!

6/30/22 – The market digests the results and guidance and the stock jumps to $0.43. YEAH BABY!!!

7/2/22 – Florian posts the transcript of the Earnings Call. What a fun call to be on, crazy bullish!

8/3/22 – The execution continues with the announcement of the expanding license with Ernst and Young, one of their biggest customers. BTW, if you were following the posts and chatter in Florian’s Elite channel you knew this was coming. No surprises. It feels so good to be Ahead of the Curve! (Yes, we were a bit to far ahead 4 months ago)

8/3/22 – Stock is back trading at $0.54. This is where I started loading up my initial core position 4 months ago! Feels so good for these shares to be back to even, feels even better that half my position was bought in the $0.20s thanks to Florian pounding the table, REALLY HARD.

8/9/22 – Bryan posts an update from his conversation with CFO Charlie Glavin in the Elite channel. I expect another bullish call on August 18th.

8/12/22 – Stock is trading at $0.60. It’s higher than the post Citi spike. Wow, investing is fun again!

 

What’s next? I think the best is yet to come, am I right?

If you haven’t yet placed your trust in Andy and Charlie I ask, what are you waiting for? My favorite management team of any stock I am invested in. They are executing and momentum is building. It wasn’t so long ago the consensus was no one will care about a tiny little company that is on the cusp of potential execution. The word potential isn’t being thrown around anymore. It simply a matter of how much and how quickly they continue to grow.

The recent hiring and excitement surrounding the 3 new sales team members gives confidence in the ever-growing pipeline and revenue growth.

I expect them to confirm this pipeline growth on the Earnings Call Thursday including specific language on substantial growth and opportunities in the financial sector.

Remember my earlier comments about the Facebook deal. It’s been 4 months and still no clear sign of when that deal is going to close. On face value this could be cause for concern but if you’ve been exposed to the Breakout Investor analysis of the conversations they’ve had with management you’d know a similar situation is likely transpiring as it did with Citi. The deal continues to grow, will it be a full enterprise license, not sure, but the longer it takes the larger it’s likely to be. I’m willing to be patient.

This is now an executing SaaS company growth story with nearly unlimited potential, and we are still way Ahead of the Curve. It’s clear Andy and Charlie have some pretty big goals and at this point I don’t think we should doubt them.

So, I ask you again, with the continued execution since my last post, the super bullish outlook and the rock-solid management team, IS THE BEST YET TO COME?

I say yes, it’s my #1 position!

 Special thanks to Breakout Investors Florian and Bryan for the work they’ve done on this name and the relationships they’ve created with management!

 Join us on the Breakout Investor Platform (BIP) to discuss BWLKF and other great little companies where our community shares research and analysis.  We seek to be Ahead of the Curve in identifying and owning great companies with catalysts that could make them the next Breakout Investment. Membership and most of the content on BIP is free.

Download the Breakout Investors app to join the conversation.

 
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x