Future 60 Canadian MicroCaps – Update (2019)

Investing

/// Top 10 Winners +55% Since Inception (July 10, 2018) ///

Let’s check in on the Future 60 Canadian MicroCaps that I wrote about in the Summer of 2018; “Small Companies; Big Dreams“. It was a fun newsletter (and one of the most popular, breaking through the top 5 most-viewed issues of all time).

Some stats, since inception (July 10, 2018):

Future 60 MicroCaps: -8.4%

  • Top 10 Winners: +55.5%
  • “Highest Growth” (1/3): +5.2%
  • Takeovers (3): + 61.6%

S&P/TSX Venture Index: -17%
S&P/TSX Composite Index: -5.5%

Shortly after writing “Small Companies; Big Dreams”, markets around the world started to correct, and so -8.4% since inception (Future 60 MicroCaps) doesn’t concern me. These are very small companies (< $100M market cap), and mostly listed on the TSX Venture, which was down -17% over the same period (July 10th – Feb 12th). What excites me is the growth potential in some of these small companies. In the original issue, I segmented 1/3 of the Future 60 into a “Highest Proven Growth” sub-list, because those 21 out of 60 stocks had all achieved the following hurdles:

  • >= 0% Latest Quarter YoY Revenue Growth (Average = 26%)
  • >= 0% Latest Annual YoY Revenue Growth (Average = 39%)
  • >= 0% Last 5-Year Revenue CAGR (Average = 21%)
  • >= 0% Cash Flow Yield (Average = 8.6%)

Here’s how those “Highest Proven Growth” stocks have done since July 10, 2018:

Company  Ticker Since Inception
Bevo Agro* BVO 163.5%
Evergreen Gaming TNA 73.9%
Xpel Technologies DAP.U 25.6%
Redishred Capital KUT 21.0%
Caldwell Partners International CWL 18.2%
Hamilton Thorne HTL 16.9%
Sunora Foods SNF 16.7%
Cortex Business Solutions* CBX 12.3%
Namsys CTZ 9.7%
Symbility Solutions* SY 8.9%
Intrinsyc Technologies ITC 5.7%
Quarterhill QTRH -8.5%
Avante Logixx XX -12.4%
Titanium Transportation TTR -15.5%
Swiss Water Decaffeinated Coffee SWP -17.3%
Wi2Wi YTY -25.0%
AirIQ IQ -26.3%
Partner Jet PJT -34.3%
Diamond Estates Wine & Spirits DWS -38.2%
Nanotech Security NTS -43.1%
Organic Garage OG -43.5%
Average  +5.2%

The above “Highest Proven Growth” sub-list of Future 60 MicroCaps gained +5.2% (v.s. -17% for the S&P/TSX Venture Composite Index), and contained all of the companies (3) from the Future 60 list that were taken-over(*) since July 10, 2018: Bevo Agro (+163.5%), Cortex Business Solutions (+12.3%), and Symbility Solutions (+8.9%). Naturally, I expect more of these MicroCap stocks to be taken over. Note: I wrote about Bevo Agro (BVO) for the first time in an earlier issue (Aug, 2017), and since then it’s gained +345%.

There were some surprises in the Top 10 Winners (+55.5%), which I recently posted on Patreon, along with the complete spreadsheet of Future 60 MicroCaps that you can check out, and follow as the list evolves. There’s 85+ members now, and more goodies, including new audio interviews with Jason Donville, and Francois Rochon (more coming soon…), My Top 15 Best Ideas for 2019 (+14.6% YTD), and more.

One thought on “Future 60 Canadian MicroCaps – Update (2019)

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