With price to book values of less than 1, positive net incomes and relatively low debt, the stocks on our list could be set to move higher
SmallCapPower | October 6, 2016: Price to Book (P/B) value measures how the market values a company relative to its accounting book value. It is measured by dividing a stock’s latest closing price by total assets without intangible assets. A low P/B ratio can signal an undervalued company, but it can also be brought on by a number of negative events. The companies on our list today, however, have tangible asset bases by the nature of their operations, positive net income and relatively small amounts of debt, so the P/B ratio can still be applied and used to hopefully unlock some value.
Alacer Gold Corp. (TSE:ASR) – $3.00
Gold
Alacer Gold Corp. (Alacer) is an intermediate gold mining company that operates in the segment of mining, development and exploration of mineral deposits in Turkey. The Company has an interest in the Copler Gold Mine in Turkey. Its Copler Sulfide Expansion Project is a gold exploration project located in east-central Turkey. Its prospects include Yakuplu Southeast prospect, Yakuplu East prospect, Yakuplu North prospect, Bayramdere prospect and Dursunbey project.
- Market Cap: $876.13 (mm)
- Price/ Book Value: 0.99
- Net Income LTM: $59.49 (mm)
- Total Debt LTM: $70.88 (mm)
Conifex Timber Inc. (TSE:CFF) – $3.48
Forest & Wood Products
Conifex Timber Inc. is a Canada-based forestry company that operates two business segments: Lumber and Bioenergy. The Lumber segment includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. The Lumber segment operates approximately three sawmill complexes in British Columbia, over one in Fort St. James and over two in Mackenzie. In the Company’s bioenergy segment, its subsidiary, Conifex Power Limited Partnership, owns and operates the Mackenzie Plant in Mackenzie BC.
- Market Cap: $74.04(mm)
- Price/ Book Value: 0.69
- Net Income LTM: $57.82 (mm)
- Total Debt LTM: $142.42 (mm)
Timbercreek Financial Corp. (TSE:TF) – $9.08
Corporate Financial Services
Timbercreek Financial Corp is a Canada-based non-banking commercial real estate lender. The Company provides shorter-duration, customized financing solutions to professional real estate investors. The Company invests in a portfolio of customized mortgage loans secured by commercial real estate, such as multi-residential, office and retail buildings located in urban markets across Canada.
- Market Cap: $593.82 (mm)
- Price/ Book Value: 0.90
- Net Income LTM: $30.22 (mm)
- Total Debt LTM: $178.72 (mm)
Empire Industries Ltd. (CVE:EIL) – $0.39
Iron & Steel
Empire Industries Ltd. designs, fabricates, manufactures, erects and sells engineered products. The Company also provides steel fabrication and installation services to industrial and infrastructure markets, primarily in western Canada. Its segments include Media-based Attractions, Manufactured Products, Steel Fabrication Services and Corporate. The Media-based Attractions segment includes design and manufacture of complex ride systems, telescopes, custom machinery and equipment. The Manufactured Products segment manufactures Hydrovac trucks for excavation service providers to the oil and gas industry and the municipal market. The Steel Fabrication Services segment provides structural steel fabrication and installation, and includes fabrication of tanks, pressure vessels and other specialty carbon and stainless steel products.
- Market Cap: $25.10 (mm)
- Price/ Book Value: 0.15
- Net Income LTM: $5.71 (mm)
- Total Debt LTM: $14.34 (mm)
