Money Trees
Deep value, growth, momentum

Vecima Networks: Cheap Yield And Improving Fundamentals

Vecima Networks Inc. (OTC:VNWTF)

Note: Vecima trades on the Toronto Stock Exchange as VCM, as well as the Pink Sheets as VNTWF.


Vecima is a very well-managed company with improving visibility, capital returns, and valuable assets, which will be used to put cash in shareholders' pockets. Year to date, Vecima has reported substantial improvements in its operating performance:

  1. 572 bps improvement in gross margin
  2. Significant cost cuts, operating expense down 13%
  3. 22c/share in operating earnings vs. a 9c/share loss
  4. Giant swings in EBITDA (+134% YTD), and free cash flow is $5.7m YTD vs. a $1.4m use

(click to enlarge)

VCM is well on its way to its first operating profit since 2009, a time when the business...

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