In early August 2016, we identified four Canadian stocks that had cash that exceeded its market cap, which has paid off for investors thus far
SmallCapPower | November 6, 2017: Last year, we identified four Canadian stocks that were trading at market caps below their cash balances. A year later, WesternZagros Resources leads our list, up 180% as it was acquired by Crest Energy. Neovasc was a close second, as it returned 139% to give the group a total return of 79%.
Related: 4 Canadian Stocks With More Cash Than Market Cap
WesternZagros Resources Inc. (Acquired)
Oil & Natural Gas
WesternZargros Resources was a natural resource company with interests in crude oil and natural gas properties in Kurdistan, Iraq. It held 40% working interests in two production-sharing contracts with the Kurdistan Regional Government. The Company was acquired by Crest Energy International LLC at a share price of $0.28, a 70% premium to its most recent closing share price.
- Price at Last Report Date: $0.10
- Delisted at: $0.28
- Overall Return (since August 11, 2016): 180%
Neovasc Inc. (TSX:NVCN) – $1.77
Advanced Medical Equipment & Technology
Formed in 2008, Neovasc is a specialty medical device company that manufactures and sells products for the cardiovascular treatment market. The Company’s flagship products include Tiara technology and the Neocasc Reducer, which are used for the treatment of mitral valve disease and for the treatment of angina.
- Market Cap: $139 Million
- Price at Last Report Date: $0.75
- Overall Return (since August 11, 2016): 139%
Itasca Capital Ltd. (TSXV:ICL) – $0.72
Diversified Mining
Itasca Capital Ltd, formerly Kobex Capital Corp, is a Canada-based holding company whose subsidiaries are focused on investing in the natural resources and industrial sectors. The Company’s primary subsidiary, 1347 Capital LLC, acts as a merchant banking firm, and is based in the United States.
- Market Cap: $33 Million
- Price at Last Report Date: $0.52
- Overall Return (since August 11, 2016): 43%
Western Resources Corp. (TSX:WRX) – $0.41
Fertilizer
Western Resources Corp, formerly Western Potash Corp, is a Canada-based company focused on developing its Milestone project in Saskatchewan. The Milestone project is designed to produce 146,000 tonnes per year of potash. The pre-construction engineering for Phase I was completed in December 2016.
- Market Cap: $38 Million
- Price at Last Report Date: $0.75
- Overall Return (since August 11, 2016): -45%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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