Investorfile Top Ideas subject to takeovers have averaged 164% in total returns. IWG Technologies becomes the fifth company takeover to date. Are there more takeovers to come for our small cap value stocks?

Investing in undervalued small cap companies that are fundamentally strong can be very rewarding. But, more often than not, a shareholder value–enhancing event like takeover of small cap company can generate a significant premium to its stock price and, just as important, instant liquidity for this investment.

Last week, one of Investorfile’s Top Ideas – IWG Technologies Inc. -- was privatized in a takeover. Public shareholders of IWG Technologies received C$0.43 per share, which equates to total investment return of 95% since our first blog post on the Company in 2015 (See: IWG Technologies is soaring in small cap value.)

Of our 17 Top Ideas profiled to date in the Investorfile blog, five stocks are no longer publicly listed on a stock exchange as a result of a takeover or privatization. The average total investment return on our Top Ideas that were subject to a takeover or privatization is about 164% to date.

Takeover or privatizations and total investment gains for Investorfile Top Ideas:

Wanted Technologies Corp. (2015) +478%
Radiant Communications Corp. (2013) +180%
IWG Technologies Inc. (2017) +95%
DDS Wireless International Inc. (2014) +48%
Galvanic Applied Sciences Inc. (2013) +17%

It is our opinion that any one of the small cap value stocks on Investorfile's Top Ideas list could be subject to a takeover bid, as these companies continue to grow their revenue bases. If we had to "guess” which could be the next five Top Ideas to be taken-over, we would select the following stocks:

Quorum Information Technologies Inc. (TSXV: QIS)
Sangoma Technologies Corp.(TSXV: STC)
Titan Logix (TSXV: TLA)
Avante Logixx Inc. (TSXV: XX)
Caldwell Partners International Inc. (TSX: CWL)

As always, a shareholder value–enhancing event like a takeover is never factored in to our share price targets. That said, future takeovers may be very rewarding for shareholders who have investments in our Top Ideas.

Author Ownership Disclosure:
Yes: TSXV: QIS, STC, TLA, XX
Yes: TSX: CWL

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.