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10
Investorfile predictions for 2017 had a 5-star performer. Will 2018 too?
Posted by: Gerry Wimmer
12/10/2017
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Stock price up 256% from forecast for Questor Technology (TSXV: QST) in 2017. Predictions for 2018 include Sangoma Technologies (TSXV: STC), Posera (TSX: PAY) and Intrinsyc Technologies (TSX: ITC).

Every December the Investorfile blog has made it an annual tradition to identify a few investment thoughts for the upcoming year that could have a positive impact on the stock price for some of our Top Ideas. While our track record for our annual predictions is not always perfect, our record shows we tend to be more right than wrong for generating investment gains.

Our predictions in 2017 had a 5-star performer, Questor Technology (TSXV: QST), whose stock is up 256% in value from our last annual forecasting blog post in December 2016 (See: Investorfile predictions for 2016 perform well. Looking forward to 2017). Maybe we will have another 5-star performer among our new set of stock predictions for 2018?

A recap of Investofile’s predictions for 2017:

1. Our Top Ideas stock which could see profits rebounding in 2017.

Prediction was: Caldwell Partners International (TSX: CWL)
Then: C$0.96 Today: C$1.06 + $0.08 dividends paid. Total Return: +20%

Caldwell Partners International is a premier executive search firm whose focus is on the high end of the employment search market. While revenue growth remained flat, the Company’s profits did rebound significantly in fiscal 2017 from cost reductions initiatives. Caldwell Partners full year net earnings after tax were $1.96 million ($0.096 per share) in 2017, versus $881 thousand ($0.044 per share) in 2016.

Last Investorfile blog post:
Caldwell Partners International is delivering on more profits and paying dividends.

2. Our Top Ideas stock which could benefit from a bounce back in the oil industry.

Prediction was: Questor Technology (TSXV: QST)
Then: C$0.66 Today: C$2.35 Total Return: +256%

Questor Technology is a leading provider of high-efficiency waste gas combustion systems used primarily by oil & gas companies to meet clean air emission requirements. In 2017, the oil industry started to bounce back and we expected sales and, more so, rentals of Questor’s combustion systems to grow in 2017 from an increase in spending by its customers. This was the case. The Company’s revenues and profits are up dramatically this year and so is the stock price.

Last Investorfile blog post:
The stars are aligning for Questor Technology and its clean-tech solutions.

3. Our Top Ideas stock which could have significant organic revenue growth in 2017.

Prediction was: Intrinsyc Technologies (TSX: ITC)
Then: C$1.87 Today: C$1.27 Total Return: -32%

Intrinsyc Technologies is a product development company in the high technology space. The Company had significant organic revenue growth in 2016, and we had forecast that pace of revenue growth would continue into 2017. It did not, and hence the stock has lost value. But we think our timing maybe off by twelve months. Therefore, see our prediction #3 below for 2018.

Last Investorfile blog post:
It is time to buy shares of Intrinsyc Technologies again.

Investorfile predictions for 2018:

1. Our Top Ideas stock that should get discovered by institutional investors in 2018.

Prediction is: Sangoma Technologies Inc. (TSXV: STC- $0.75)

Sangoma Technologies delivers Unified Communications solutions for SMBs, Enterprises, OEMs, Carriers and service providers. The Company’s scalable offerings include both on-premises and cloud-based phone systems. Sangoma’s transformation over the last 12-momths has been outstanding and Company-provided financial guidance for fiscal 2018 has revenues at C$46 million, and EBITDA at C$4 million which is significantly higher than fiscal 2017. The growth has been both organic and through acquisitions. We think Sangoma will begin to attract the attention of institutional investors next year, which should increase the valuation of the Company’s stock. Of note, two investment houses (Cormark Securities and Beacon Securities) have recently initiated research coverage on Sangoma Technologies, with target prices for the stock at C$1.50 plus in 2018. This implies 100% upside from current trading levels.

Last Investorfile blog post:
Sangoma Technologies stock price has lots of room to run.

2. Our Top Ideas stock which could see a significant turnaround in revenues and profits.

Prediction is: Posera Ltd. (TSX: PAY - C$0.195)

Posera’s products and services facilitate all aspects of the payment transaction between the merchant and the consumer in the hospitality industry.The Company’s Point-of-Sale (POS) Systems software solutions, associated enterprise management tools and debit/credit payment terminals have been deployed in 25 countries in over 30,000 merchant locations worldwide. In 2017, revenues were down slightly. But that is about to change, as several of Posera’s POS and operational solutions are on the verge of a significant ramp up in sales which should impact revenues and profitability beginning in 2018. The Company also has a significant cash position to fund growth opportunities.

Last blog post:
Posera has big growth opportunities on the horizon

3. Our Top Ideas stock which could see revenue growth from bigger contracts in 2018.

Prediction is: Intrinsyc Technologies (TSX: ITC - C$1.27)

Yes, our prediction for Intrinsyc Technologies is similar to last year. Intrinsyc shares in the commercial success of its customers by earning recurring revenues from computer modules sales and/or design royalties in correlation with the production ramp-up of new high-tech products. We had expected that several of Intrinsyc’s customers were ready to launch on commercial production of new products which means bigger contract wins. Therefore, we anticipate that Intrinsyc could report significant year-over-year growth in both revenue and profits in 2018, which should be a catalyst for the stock price next year.

Last blog post:
It is time to buy shares of Intrinsyc Technologies again

Author’s ownership disclosure: Yes – CWL, QST, ITC, STC, PAY


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 Intrinsyc Technologies Corp. Questor Technology Inc., Sangoma Technologies Corp., Posera Ltd. and Caldwell Partners International Inc. nor has it received any compensation from Intrinsyc Technologies Corp., Questor Technology Inc., Sangoma Technologies Corp., Posera Ltd. and Caldwell Partners International Inc. for the preparation or distribution of this article.

The author of this article has acquired and may trade shares of Intrinsyc Technologies Corp. Questor Technology Inc., Sangoma Technologies Corp., Posera Ltd. and Caldwell Partners International Inc. through open market transactions and for investment purposes only.

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Hi Gerry, Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that. Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.