BEWHERE INC

BEW-TSXV

Is it better to buy an okay business on the cheap or a great business at a reasonable price?

That’s a question that has sparked debate and will continue to forever!  Some investors look for bargains. Others look for quality.

I will go either way. But with BeWhere (BEW - TSXv), I am definitely seeing the quality of the business here. At just a $14 M run rate, it is generating FREE CASH FLOW—not just revenue, not just +EBITDA, not just +ve NET income—but actual FCF!!!!

BeWhere is an IoT play—Internet of Things. They sell the hardware, sensors and software to perform real-time tracking of assets. They track stuff like trailers, pallets, containers and construction equipment. Even bicycles!

Their beacons are used in transport trailer locations–and their contents!, construction site conditions, atmospheric conditions, medical equipment and many many others.

They only have 16 employees, mostly hardware and software engineers. Their channel to market is mostly distributors, companies like Bell Canada.

This is one of the most profitable companies I've seen for its size. Not because this is a stagnant business in harvest mode.  BeWhere has grown for years and if I’m right that growth is about to get even stronger!

This is a profitable business even as BeWhere grows and innovates new solutions. BeWhere is actively investing in new IoT sensor technologies to sell even cheaper tracking devices in the next few months.

In July, BeWhere announced a HUGE order for 16,000 of their beacons. This order represented a big step up in size and illustrates that BeWhere customers are making the jump to wide adoption.

Oh, and the order was from the shipping giant UPS (UPS – NYSE)!

What is amazing about this company is that while it is small, its customers are not.  In addition to UPS, BeWhere boasts Costco (COST – NYSE), Lyft (LYFT – NASDAQ) and a host of other major companies as customers.

BeWhere began as a first mover, providing a low-cost tracking device to markets where the only options were high cost.



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