IBC Advanced Alloys (IB.V): I love it when a plan comes together

The most read/heard story on our website since its launch has been our recent podcast with IBC Advanced Alloys (IB.V), a great story that has long been rich in promise and is now delivering on said promise.

The day after our podcast posted, IB stock took off, jumping 41%. And it’s been climbing ever since. Behold the power of Equity.Guru!

braveheart

IBC makes beryllium alloys, which are much lighter and stronger than traditional aluminum for things such as fighter parts. Previously, the two elements that make up the alloy had melting points too far from one another to properly be utilized. IBC figured out how to change that, and are now approved and featured in the Lockheed Martin aerospace and military supply handbook.

And they’re making sales. In fact, they released financials yesterday that show their quarterly loss shredded when compared to a year previous, looming ever closer to profitability.

IBC showed:

  • Total revenues up 43% sequentially and up 6% over the comparable period in 2015.

  • Quarterly loss ($296K) down 49% from the comparative period in 2015 and down 83% from the preceding quarter.

  • Engineered Materials division posts record quarterly sales ($1.85M).

  • Copper Alloys division saw sales rise sequentially, after a very weak Q2, and higher demand is seen for copper-based semi-finished and finished products.

  • Cost-cutting measures reduced SG&A expenses in the quarter by 23% YOY.

  • As a result of its recently closed private placement (C$7.46M gross proceeds, approximately $5.7M), the Company is now engaged in upgrading equipment and expanding production capacity in both divisions.

Everything improving, and money in the door to finance upgrades in capacity, complexity, and quality. Let there be no doubt, the loss as it stands is negligible when you’re dealing with aerospace tech. One more sales contract and you’re into profitability.

IBC is supplying parts for the Lockheed Martin F-35 Lightning II program, which will cost the US into the trillions of dollars. The pilot’s helmet on an F-35 costs over $400,000, being as it includes such things as custom-fitted carbon fiber casing, a heads up display that hooks into cameras around the aircraft to allow the pilot to see what’s happening underneath the plane, or behind it, sensors to ensure the pilot’s health is optimal, and a load more.

The F-35 is the best of everything, and IBC Advanced Alloys is a supplier.

They’re also not a client. But they’re a great Canadian story that is a solid bet going forward, and we’re 100% behind that every time.

–Chris Parry

http://www.twitter.com/chrisparry

 

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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