equities.com Launches Canadian Small-Cap Stars

Joel Anderson |

Whether fair or not, in the United States Canadians have a reputation for being comparatively clean, polite, law-abiding, and respectful of others. However, one of Canada’s great cultural passions, the sport of hockey, breaks hard from most of these perceived traits. The great Canadian pastime of ice hockey is aggressive, fast, and chaotic in ways that no other sport can claim, placing it seemingly well outside the perception of Canadians as polite, agreeable, and altogether low key.

In the same way that hockey seems to flip classic Canadian stereotypes on their head, so does the landscape of the Canadian stock market. The defining characteristics of Canadian equities seem to befit the broader perception of America. A broad swath of small- and micro-cap resource companies are seeking their fortunes throughout the remote expanses of the Canadian west, and a great many more investors are rolling the dice along with them. Bid-ask spreads are wider and the opportunities for huge gains are all over.

As you might expect, it’s yet another example of overly simplified perceptions leaving one with a lack of any real understanding. Perhaps most importantly, when it comes to investing, this lack of knowledge could cost you serious money. That’s why equities.com is proud to be producing our Canadian Small-Cap Stars.

The Small-Cap Stars system is ideally suited for a market like Canada’s. In the Canadian market, great volatility and variance mean the best investing solution is to identify the companies with the strongest fundamentals, diversify your holdings amongst them, and count on your hits to make up for the inevitable misses.

The equities.com Small-Cap Stars system identifies a profile of a small-cap company on the verge of big gains by examining those companies that recently made big jumps on the basis of dozens of different key metrics. Then, after we have identified what precise blend of those fundamentals appears most common amongst the winners, we apply that profile to current companies to identify those companies that appear to be in the best position to take advantage of their current situation.

The systems we offer appear to be well-suited for the Canadian markets. When back-testing the system over the last five years, the universe of stocks we drew from returned 91.449%, while the stocks selected by our Small-Cap Stars system returned a whopping 165.215% with our portfolio outperforming the universe four years out of five.

Granted, this list is considerably smaller than its American counterpart in many ways, and consists of some easy-to-overlook plays. However, the list also includes plenty of potential for substantial returns that can easily surprise you if you haven’t been paying attention – not unlike Canada herself.

 

 
Ticker Company Name Sector Market Cap Exchange Canadian Exchange
POT Potash Corp. of Saskatchewan, Inc. Basic Materials 30.69B NYSE TSX
TRP TransCanada Corp. Basic Materials 32.81B NYSE TSX
PBA Pembina Pipeline Corporation Basic Materials 11.46B NYSE TSX
TRQ Turquoise Hill Resources Ltd. Basic Materials 6.16B NYSE TSX
ERF Enerplus Corporation Basic Materials 1.81B NYSE TSX
AG First Majestic Silver Corp. Basic Materials 694.31M NYSE TSX
RIOM Rio Alto Mining Limited Basic Materials 815.19M NYSE TSX
AGI Alamos Gold Inc. Basic Materials 989.59M NYSE TSX
BTG B2Gold Corp. Basic Materials 1.74B AMEX TSX
DDC Dominion Diamond Corporation Basic Materials 1.53B NYSE TSX
NG NovaGold Resources Inc. Basic Materials 1.11B AMEX TSX
PVG Pretium Resources Inc. Basic Materials 776.92M NYSE TSX
FSM Fortuna Silver Mines Inc. Basic Materials 623.38M NYSE TSX
PPP Primero Mining Corp. Basic Materials 655.92M NYSE TSX
AAU Almaden Minerals Ltd. Basic Materials 75.36M AMEX TSX
GPL Great Panther Silver Ltd Basic Materials 89.05M AMEX TSX
MVG MAG Silver Corp. Basic Materials 568.53M AMEX TSX
RBY Rubicon Minerals Corporation Basic Materials 381.53M AMEX TSX
SAND Sandstorm Gold Ltd. Basic Materials 432.99M AMEX TSX
RIC Richmont Mines Inc. Basic Materials 159.36M AMEX TSX
SSRI Silver Standard Resources Inc. Basic Materials 444.88M NASDAQ TSX
SVLC Silvercrest Mines Inc. Basic Materials 156.75M AMEX TSX
SVM Silvercorp Metals Inc. Basic Materials 242.56M NYSE TSX
TGD Timmins Gold Corp. Basic Materials 171.74M AMEX TSX
DNN Denison Mines Corp. Basic Materials 499.11M AMEX TSX
SA Seabridge Gold, Inc. Basic Materials 411.03M NYSE TSX
UFS Domtar Corporation Consumer Goods 2.57B NYSE TSX
GIL Gildan Activewear Inc. Consumer Goods 6.90B NYSE TSX
COT Cott Corporation Consumer Goods 688.39M NYSE TSX
IPCI IntelliPharmaCeutics International Inc. Healthcare 59.16M NASDAQ TSX
CRME Cardiome Pharma Corp. Healthcare 162.18M NASDAQ TSX
CP Canadian Pacific Railway Limited Services 31.01B NYSE TSX
MGA Magna International Inc. Services 22.50B NYSE TSX
IMAX IMAX Corporation Services 2.11B NYSE TSX
MDCA MDC Partners Inc. Services 1.13B NASDAQ TSX
DSGX The Descartes Systems Group Inc Technology 1.10B NASDAQ TSX
SMT Smart Technologies Inc. Technology 144.35M NASDAQ TSX
TCX Tucows Inc. Technology 216.23M NASDAQ TSX
 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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