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        Hi, I’m Ted Dixon with INK
Morning Report
        preview for May 7th,
        "Exco Technologies short
positions
        are cruising for a
bruising."
        For the past few years,
        Exco Technologies has
stood out as
        contrarian value play that
is big enough for
        both institutions and
financial advisors
        to consider as an
investment candidate.
        For example, when we
featured
        the industrial
manufacturer
        here back on July 3,
        2019, the stock was
approaching
        a four-year bear market
and Edward Kernaghan,
        a Director, was buying.
        That turned out to be a
profitable trade as
        the stock has advanced
about 28.6%,
        outpacing the S&P/TSX
Composite
        up 16.5% since that
report.
        The stock has pulled back
from
        recent highs and Mr.
        Kernaghan is buying again.
        The pullback comes as
microchip shortages
        spook investors in the
automotive industry.
        As it turns out,
        those chip fears surfaced
when
        Exco reported results for
        the quarter ended March
31st.
        Consolidated sales came in
at $118.4 million,
        representing a 1% drop
        from the same quarter last
year.
        When excluding foreign
exchange
        rate fluctuations,
        sales increased 4% during
the quarter.
        However, the Automotive
Solutions segment
        which accounted for $63.9
million
        in sales experienced a
small 1% drop
        excluding the impact of
foreign exchange.
        One of the reasons for the
setback given was
        the negative impact from
        the global microchip
shortage.
        Nevertheless, the company
reported EPS of
        30 cents in the quarter
        versus 24 cents a year
earlier.
        That has helped to boost
EPS growth by
        4.9% over the past 12
months
        according to Refinitiv
data.
        Mr. Kernaghan seems to be
        betting that trend will
continue.
        Short sellers seem to
        have a different take on
things.
        Short interest in the
stock
        remains elevated at 1.4
        million shares or 6.7% of
the float.
        So who is right, the
shorts or the insiders?
        While only time will tell,
        INK short signals suggest
that
        the stock has a potential
short-squeeze setup
        as short sellers are
betting against
        a company with relatively
        high insider commitment.
        Now, this is not A
RECOMMENDATION TO
        BUY OR SELL SECURITIES AND
I AM
        NOT A FINANCIAL ADVISOR.
        SO PLEASE DO YOUR OWN DUE
DILIGENCE.
        If you would like a copy
of the full report,
        please visit
INKResearch.com or
        CanadianInsider.com where
you can get
        the report via the
Canadian Insider Club.
        Well thanks for stopping
by
        and click on the notify
button under
        this video on INK Ultra
Money to be
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