Average returns for our Top Ideas rise while small cap indices decline in 2015
For the first half of 2015 the market has not been kind to
small cap stocks and particularly for those listed on Canadian exchanges.
Generally small cap stock values have headed lower with trading volumes on the
decline. The reasons why are multiple and seem to change on a monthly
basis. This causes a negative market sentiment and aversion to risk and risk is
what small cap stocks inherently possess.
Despite all the market noise so far in 2015, Investorfile's Top Ideas for small cap value stocks
posted a combined average total return of 7% to date this year. Compare our
returns to the S&P/TSX Small Cap Index a loss of 1%, or the S&P/TSX
Venture Exchange Composite Index which is down 5% in 2015, and the results
appear even stronger.
We note that the vast majority of
Investorfile-recommended small cap stocks trade at higher share prices than the
beginning of this year. The few stocks that have declined in 2015 are still up
overall (some significantly) since first becoming one of our Top Ideas.
Investorfile’s top performers during the first six-month period of
this year are:
- Quorum
Information Technologies Inc. (TSXV: QIS) +40%
- Avante
Logixx Inc. (TSXV: XX) +37%
- RDM
Corporation (TSX: RC) +28%
Even in a volatile market, individual small cap stocks can
generate big returns from shareholder-value enhancing events. That said we
think many of Investorfile's Top Ideas are well-positioned for investors to
profit, either from takeovers, acquisitions or increased dividend payouts in
the second half of 2015.
As of June 30, 2015 our Small Cap Value Stocks Top Ideas total
return leaders (including dividends) were as follows ($C):
- Questor Technology
Inc. TSXV: QST - $1.85 (+388%)
See: QST blog posts
- WANTED Technologies
Corp. TSXV: WAN - $1.39 (+349%)
See: WAN blog posts
- RDM
Corporation TSX: RC - $3.55 (+338%)
See: RDM blog posts
- Caldwell
Partners International Inc. TSX: CWL - $1.56 (+182%)
See: CWL blog posts
- Titan Logix
Corp. TSXV: TLA - $1.27 (+182%)
See: TLA blog posts
- Radiant
Communications Corp.* - $1.43 (+180%)
See: RCN blog posts
- Avante
Logixx Inc. TSXV: XX - $0.38 (+74%)
See: XX blog posts
- Quorum
Information Technologies Inc. TSXV: QIS - $0.30 (+50%)
See: QIS Blog posts
- DDS Wireless
International Ltd.* - $2.25 (+48%)
See: DD blog posts
- Sangoma Technologies
Corp. TSXV: STC - $0.28 (+40%)
See: STC blog post
- Galvanic
Applied Science Inc. * - $1.70 (+17%)
See: GAV blog posts
- IWG
Technologies Inc. TSXV: IWG - $0.24 (+10%)
See: IWG blog post
- Intrinsyc Technologies
Corp. TSX: ITC - $0.80 (+7%)
See: ITC blog posts
* Denotes company privatization or takeover
Author's ownership disclosure:
TSX: ITC - Yes
TSX: RC – Yes
TSX: CWL – Yes
TSXV: STC - Yes
TSXV: XX – Yes
TSXV: QIS – Yes
TSXV: TLA – Yes
TSXV: QST – Yes
TSXV: WAN – Yes
TSXV: IWG - Yes
Read Disclaimer:
This article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
responsibility to update the information contained in this article. The
information contained within this article should not be construed as offering
of investment advice. Those seeking direct investment advice, should consult a
qualified, registered, investment professional. This is not a direct or implied
solicitation to buy or sell securities. Readers are advised to conduct their
own due diligence prior to considering buying or selling any stock.
Investorfile.com is not engaged in an investor
relations agreement with Wanted Technologies Corp., RDM Corporation, Questor
Technology Inc., Caldwell Partners International Inc., Avante Logixx Inc., Titan
Logix Corp., Sangoma Technologies Corp., Quorum Information Technologies Inc.
and Intrinsyc Technologies Corp. nor has it received any compensation from
Wanted Technologies Corp., RDM Corporation, Questor Technology Inc., Caldwell
Partners International Inc., Avante Logixx Inc., Titan Logix Corp., Sangoma
Technologies Corp., Quorum Information Technologies Inc., Intrinsyc
Technologies Corp. and IWG Technologies Inc. for the preparation or
distribution of this article.
The author of this article has acquired and may trade shares of Wanted
Technologies Corp., RDM Corporation, Questor Technology Inc., Caldwell Partners
International Inc., Avante Logixx Inc, Titan Logix Corp., Sangoma Technologies
Corp., Quorum Information Technologies Inc., Inrinsyc Technologies Corp. and
IWG Technologies Inc. through open market transactions and for investment
purposes only. |
