5 Small Caps Likely to Hit Profitability Soon

When a company’s losses shrink quarter over quarter it can be an indication that it will soon become profitable, hopefully consistently. That being said, the companies on our list today have decreased its net losses over the past two straight quarters.

Bonterra Energy Corp. (TSX: BNE) – $21.71

Oil & Gas Exploration and Production

Bonterra Energy Corp. (Bonterra) is an oil and gas company engaged in the exploration, acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan. The Company’s development efforts are focused in the Cardium zone of the Pembina and Willesden Green fields located in west central Alberta. Bonterra operates 85% of its production with an average land working interest of 77%.

• Market Cap: 699,920,749
• Revenues (LTM): $236,465,000
• Net Income (LFQ): -$1,156,000
• Net Income (FQ – 2): -$32,848,000

Major Drilling Group International Inc. (TSX: MDI) – $4.15

Mining Support Services & Equipment

Major Drilling Group International Inc. is a drilling service company primarily serving the mining industry. The Company has operations in Canada, the United States, South and Central America, Australia, Asia and Africa. It provides types of drilling services, including surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, and coal-bed methane and shallow gas.

• Market Cap: $337,376,282
• Revenues (LTM): $322,101,000
• Net Income (LFQ): -$11,180,000
• Net Income (FQ – 2): -$18,999,000

Neptune Technologies & Bioressources Inc. (TSX: NTB) – $1.40

Biotechnology & Medical Research

Neptune Technologies & Bioressources Inc. (Neptune) is a Canada-based biotechnology company engaged primarily in the development, manufacture and commercialization of marine-derived omega-3 polyunsaturated fatty acids (PUFAs). The Company operates in three segments: Neptune, Acasti Pharma Inc. and NeuroBioPharmInc. The Company’s products include Neptune Krill Oil (NKO) and ECOKRILL Oil (EKO), which come in capsule form and serve as a dietary supplement to consumers.

• Market Cap: $107,611,078
• Revenues (LTM): $15,837,650
• Net Income (LFQ): -$1,875,250
• Net Income (FQ – 2): -$9,220,170

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The Ubika Mining 20 index (UM20) climbed 7.1% during the past month, compared with a 12.1% gain by the TSX Mining Index, outperforming the TSX Venture Index during this time. Sierra Metals Inc. (TSX: SMT) was the top-performing component this month, powering 33% higher after reporting production increases from its two mines in Mexico. 
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Tembec Inc. (TSX: TMB) – $1.16

Paper Products

Tembec Inc. (Tembec) is a Canada-based company engaged in the manufacturing of forest products. The Company manufactures lumber, pulp, paper, specialty cellulose and in sustainable forest management practices. Tembec has operations in North America and France. Tembec directly manages nearly 10 million hectares (about 25 million acres) of Canadian forestlands.

• Market Cap: $115,824,109
• Revenues (LTM): $1,228,000,000
• Net Income (LFQ): -$16,000,000
• Net Income (FQ – 2): -$62,000,000

Surge Energy Inc. (TSX: SGY) – $2.94

Oil & Gas Exploration and Production

Surge Energy Inc. is a Canada-based oil and gas exploration, development and production company operating gravity crude oil properties, primarily in Alberta, Saskatchewan and Manitoba, characterized by oil in place crude oil reservoirs. The Company’s principal oil and natural gas producing properties are located in Alberta, Saskatchewan and Manitoba.

• Market Cap: $648,317,462
• Revenues (LTM): $395,479,000
• Net Income (LFQ): -$9,769,000
• Net Income (FQ – 2): -$109,181,000