Glacier Media Inc

Glacier Media Inc (TSXV: GVC) operates as an information and marketing solutions company in Canada and the United States. The company operates through three segments: Environmental and Property Information; Commodity Information; and Community Media.

Why Should Investors Exit?

• Significant EBITDA margin contraction in Q3FY21: During the third quarter of FY21, despite company reported a consolidated revenue growth of 13.9% on a YoY basis, EBITDA margin contracted from 24.3% in Q3FY20 to 8.1% in Q3FY21 in the same period and per share EBITDA lowered to CAD 0.02 from CAD 0.07 reported in the same period of the previous financial year.
• Heightening uncertainties: The resurgence in the COVID-19 cases could once again disrupt the company’s growth catalyst. Given the current market sentiment where uncertainties are edging higher, micro-cap stock are standing at high risk and any adverse move could have a significant weigh on the overall performance of the company.
• Technical weakness: GVC shares are hovering below its crucial long-term support level of 200-day SMA, which typically considered to be a long-term bearish trend in the stock. Also, 14-day RSI has recorded reversal in the past from the current level, implies that the trend in not so strong.

Technical price chart (as on January 06, 2022). Source: REFINITIV, Analysis by Kalkine Group 

Stock recommendation

The global equity market is going through a time where uncertainties are significantly high on the back of the resurgence in the COVID-19 cases. Given the penny cap market categorization of the company, it is exposed to a higher risk. Moreover, technical trend is more of sideways kind, and 200-day SMA will act as crucial resistance in near-term. Hence, we recommend a “Sell” rating at the closing price of CAD 0.42 (as of January 06, 2022).

1-Year price chart (as on January 06, 2022). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

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