Driven by new orders, expanded deals, acquisitions and cost savings, the Canadian small caps on our list might have an upside surprise
SmallCapPower | December 8, 2016: Most of the Canadian small caps on our list today are part of one of the five main stock indices that we produce and have been featured as notable performers within the last couple of months. Driven by new orders, large recurring orders, synergistic acquisitions and lower-than-expected development costs, these companies could be getting ready to move towards their analyst price targets when they release their earnings in the next 30 days. The mean analyst price targets of these companies, taken from Reuters, imply large upsides to their current stock prices.
Memex Inc. (CVE:OEE) – $0.32
IT Services & Consulting
Memex Inc is a Canada-based provider of Industrial Internet of Things (IIoT) technology. The Company’s flaghship product, the MERLIN IIoT communications platform, reveals hidden factories when customers replace subjective data collection with software. MERLIN connects industrial machines and delivers manufacturing productivity metrics, providing manufacturing analytics in real-time from the shop floor to the top floor. The Company has over 100 manufacturing customers, such as Mazak USA, Magellan Aerospace, Homemeyer Precision Manufacturing and Milwaukee Tool that use MERLIN IIoT software every day to increase productivity in their plants.
- Market Cap: $36.42(mm)
- Expected Report Date (FQ1): 19/12/2016
- Price Target – Mean (CAD): $0.73
- Implied Upside: 127%
BSM Technologies Inc. (TSE:GPS) – $1.23
IT Services & Consulting
BSM Technologies Inc. (BSM) is a Canada-based company engaged in the development and provision of hardware and software solutions. The Company’s software and hardware solutions provide a link between its customers’ operations and the systems they use to run their business. Its solutions are capable of being deployed over cellular, wireless fidelity (Wi-Fi) or satellite networks. BSM’s services are delivered over a network utilizing the Internet and are provided on a software as a service (SaaS) basis. BSM’s solutions provide information that enables its customers monitor and manage their assets in various areas, such as telematics, fuel and maintenance, compliance, routing and scheduling, work flow management, machine to machine and system integration.
- Market Cap: $101.64(mm)
- Expected Report Date (FQ1): 14/12/2016
- Price Target – Mean (CAD): $2.09
- Implied Upside: 70%
Sandvine Corp. (TSE:SVC) – $2.98
Communications & Networking
Sandvine Corporation develops and markets Network Policy Control solutions for communications service providers. The Company’s Network Policy Control solutions consists a hardware platform and software modules that are bundled together to provide a system for broadband communications service providers to identify (video streams, such as Netflix, Voice over Internet Protocol traffic, such as Skype, or online gaming), report on and take action on the data traversing their networks. Its hardware platform, Policy Traffic Switch (PTS) product line includes over three hardware models, the PTS 22000, PTS 24000 and PTS 32000.
- Market Cap: $404.27(mm)
- Expected Report Date (FQ1): 05/01/2017
- Price Target – Mean (CAD): $3.61
- Implied Upside: 21%
Blackbird Energy Inc. (CVE:BBI) – $0.55
Oil & Gas Exploration and Production
Blackbird Energy Inc. is a Canada-based energy company engaged in the exploration for and the production of oil and natural gas. The Company’s operations are located in Western Canada. The Company is engaged in crude oil condensate and natural gas exploration, development and production in the Western Canada Sedimentary Basin. The Company is focused on the exploration and development of its interests in Elmworth Montney property, which is located near Grande Prairie, Alberta. The Elmworth Montney property consists of approximately 53,600 net acres of prospective Montney lands. It is located in a condensate and liquids-rich gas corridor of the Montney.
- Market Cap: $318.86(mm)
- Expected Report Date (FQ1): 23/12/2016
- Price Target – Mean (CAD): $0.88
- Implied Upside: 59%