Weekly Update #12 - Week Ending 04/26/26
$BRM.V / $BIRMF, $TZOO and Others
Studs & Duds, Stocks On Our Radar, and Information Arbitrage TearSheets from companies in our Microcap Quality Index…
Highlights
$BRM.V / BIRMF (Quarterly Results): Q4 sales of $16.9M vs $9.3M YoY and EPS of $0.16 vs $0.01. Backlog hit a record $65.3M (+16.4% YoY) with bidding at "historical levels." Recurring dry scrubber revenue is starting to show up. Trading at ~10.5x forward P/E with room to re-rate to 15–20x.
TZOO (Quarterly Results): Stock up 25%+ on the print, but the headline numbers miss the story. One segment is a cash cow; the other is recurring, high-margin, and just grew ~90% YoY. A pricing change and lower CAC flipped the EPS narrative.
🔒🔒🔒🔒 (Quarterly results): A company in the index posted Q4 sales up ~47% YoY and EPS up ~34% YoY. Management is reorganizing to double the business in three years. Both segments have positive outlooks, with a notable uptick in early-stage project proposals. Tough Q1 2026 comps could create a pullback opportunity. Trading at ~13.6x forward P/E.
Studs (Positive News)
1) BRM.V / BIRMF | Air Pollution Control Systems
Quarterly Results
Biorem posted strong Q4 results with sales of $16.9 million vs $9.3 million in the prior year. and Q4 EPS of $0.16 vs $0.01.
Despite the strong revenue and EPS this quarter, it’s worth reiterating that Biorem is currently a lumpy business and should be evaluated on a trailing twelve-month basis. On that view, performance in the Middle East and other international markets was solid, while Canada and the U.S. saw YoY declines.
Backlog is the most important leading indicator for Biorem revenue, and they posted a backlog of $65.3M, up 16.4% YoY from $56.1 M in the prior year. Will the strong backlog numbers continue? According to Biorem:
“Bidding activity throughout 2025 and into 2026 continued to be robust and at historical levels.”
Another important aspect to highlight is Biorem’s shift into recurring dry scrubber products, something we highlighted over here. Management even stated:
"Investments made during 2025 for our Service Group have already produced tangible results in terms of recurring revenue"
We estimate Biorem is currently trading at a forward P/E of 10.5x and can re-rate to a 15.0x P/E in the short-term and possibly 20.0x in the mid-term if the company can continue displaying operating leverage and growing its recurring revenue base.
2) TZOO | Online travel deals publisher
Quarterly Results
Travelzoo posted Q1 2026 results with sales of $24.3 million vs. $23.1 million in the prior year, and Q1 2026 EPS of $0.23 vs. $0.26 in the prior year.
At first glance, these results aren't impressive, but the market disagrees; the stock is up more than 25% since the release. Once you put the numbers into context, you'll see this is the story of a beaten-up company with two segments:
One a low-growth cash cow
A recurring, high-growth, high-margin business