When you generate large amounts of cash flow from operations and have a small net loss, it could be a sign of future growth for the Canadian stocks on our list
SmallCapPower | November 25, 2016: When there is a net loss that is just on the negative side and a substantially larger positive cash inflow from operations, you can assume that there may be some accounting rule being used to post that negative income for tax purposes. The reason a company might do that is for a tax loss carry forward, which can then be used to reduce the amount of income it pays taxes on when it starts generating an accounting profit. This will help to increase its net earnings and the amount of cash that the company keeps, allowing the company to instead invest that money back into its operations to further accelerate its growth, ultimately helping to increase its value. That being said, the Canadian stocks on our list today are all operating just on the side of a net loss, but with large cash flows from operations could be in that situation.
Pivot Technology Solutions Inc. (CVE:PTG) – $0.43
IT Services & Consulting
Pivot Technology Solutions, Inc. focuses on the strategy to acquire and integrate technology solution providers, primarily in North America. The businesses acquired by the Company designs, sells and supports integrated computer hardware, software and networking products for business database, network and network security systems. The Company primarily serves customers throughout the United States. The Company, together with its portfolio companies and partners, delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their business needs.
- Market Cap: 72(mm)
- YTD Price PCT Change: -21.3%
- Cash from Operating Activities (LTM, CAD): $8.95
- Net Income After Taxes (LTM, CAD): -$0.02
Mandalay Resources Corp. (TSE:MND) – $0.77
Mandalay Resources Corporation is a Canada-based mining company engaged in the business of exploration, development and mining of natural resource properties. The Company owns and develops Challacollo, which is a silver-gold project located in Region I (Tarapaca) of Chile, approximately 130 kilometers southeast of the port city of Iquique. Its Cerro Bayo is a producer of silver (Ag) and gold (Au), located in the Cerro Bayo district, Region XI, Chile. Its Bjorkdal project is a gold mine located in northern Sweden. Its Costerfield is a gold-antimony mine, located approximately 100 kilometers northwest of Melbourne, Victoria.
- Market Cap: 347(mm)
- YTD Price PCT Change: 20.3%
- Cash from Operating Activities (LTM, CAD): $74.87
- Net Income After Taxes (LTM, CAD): -$0.14
Forage Orbit Garant Inc. (TSE:OGD) – $1.74
Mining Support Services & Equipment
Orbit Garant Drilling Inc. provides surface and underground drilling services to the mining and exploration industry in Canada and internationally. The Company provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. It operates through two segments: Canada and International. It has a fleet of approximately 226 drill rigs. It provides drilling services to the minerals industry through all stages of mine development, from exploration through production. Its client mining companies consist of major (or senior), intermediate and junior companies (which focus on exploration only).
- Market Cap: 61(mm)
- YTD Price PCT Change: 138.4%
- Cash from Operating Activities (LTM, CAD): $8.83
- Net Income After Taxes (LTM, CAD): -$0.25
Atico Mining Corp. (CVE:ATY) – $0.85
Atico Mining Corporation is a Canada-based company engaged in copper-gold mining and related activities, including exploration, development, extraction and processing in Colombia, and the acquisition, exploration and development of copper and gold projects in Latin America. The Company, through Minera El Roble S.A. (MINER), has interests in the El Roble mining property (El Roble). El Roble is an operating copper-gold mine in Colombia.
- Market Cap: 83(mm)
- YTD Price PCT Change: 203.6%
- Cash from Operating Activities (LTM, CAD): $12.07
- Net Income After Taxes (LTM, CAD): -$0.55
North American Energy Partners Inc. (TSE:NOA) – $4.74
Oil Related Services and Equipment
North American Energy Partners Inc. provides a range of mining and heavy construction services. The Company offers its services to customers in the resource development and industrial construction sectors, within Western Canada. The Company provides construction and operations support services through various stages of an oil sands project’s lifecycle. The Company’s total fleet (owned, leased and rented) includes approximately 380 pieces of diversified heavy construction equipment supported by over 1,750 pieces of ancillary equipment. Its services include site clearing and access road construction; site development and underground utility installation; construction and relocation of mine site infrastructure; stripping, muskeg removal and overburden removal; heavy equipment and labor supply; material hauling, and mine reclamation and tailings pond construction.
- Market Cap: 149(mm)
- YTD Price PCT Change: 91.9%
- Cash from Operating Activities (LTM, CAD): $48.43
- Net Income After Taxes (LTM, CAD): -$0.66