Hi there,
TMG is certainly an interesting company. It's technologies allow companies to reduce fuel consumption and carbon emissions. Given this environment, it is certainly operating in the right space. However, the company has been materially impacted by COVID-19. Projects and orders have been delayed, it has seen a material impact to revenue in the last few quarters.
On the bright side, it managed to squeak out YOY revenue growth in Fiscal 2020 and overall, the industry is rebounding. It is however, going to take some time. In the first quarter of Fiscal 2021, revenue came in at only $2.8M vs $5.0M last year and the order backlog as if mid-November is at $10M - down from $14.8M at the same time last year. Good news is that YTD order intake is actually up 72% YOY to $9.3M.
There is lots of volatility here, and the pandemic shutdowns are impacting the company. It is however, well positioned once a greater degree of certainty returns to the markets. The company is decently priced at only 0.91 times sales although revenue may ultimately decline YOY in fiscal 2021. I think it is an interesting company with potential, however as mentioned expect volatility. Pay particular attention to backlog and orders in the coming months/quarters to see how it is performing and if COVID-19 is having longer-than-expected impacts.
As a stock that trades at only 11cents - this is not for the defensive investor and only for those with a high risk tolerance. It can also move in a big way on either side with the slightest bit of news (positive or negative).
Mat