5 Canadian Small Caps with Insider Ownership Below 1%

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Companies with market capitalizations of less than $2 billion are perceived as riskier investments mainly due to an unproven business concept and a mountain to climb before gaining significant market share/cash flow base. With this in mind, insider ownership is a crucial statistic. It shows to what extent management’s interests are aligned with the success of the company. The companies on our list today, unfortunately, have less than 1% insider ownership, suggesting that those making the decisions have ‘little skin in the game’.

Uranium Participation Corporation (TSX: U) – $5.09

Uranium

Uranium Participation Corporation is a Canada-based investment company that invests all of its assets in uranium oxide in concentrates (U3O8) and uranium hexafluoride (UF6). The Company invests at least 85% of the proceeds of its equity offerings in uranium, with the primary objective of achieving appreciation in the value of its uranium holdings. The Corporation also lends its uranium to third parties from time to time. The Company’s uranium is held directly or indirectly through its subsidiary, Uranium Participation Cyprus Limited. Denison Mines Inc. (The Manager) provides general administration and management services to the Company.

  • Market Cap: $583,747,229
  • Revenues (2014): $188,053,000
  • Insider Ownership: 0.05%
  • Shares Outstanding: 116,516,413

Medical Facilities Corp. (TSX: DR) – $14.25

Healthcare Facilities & Services

Medical Facilities Corporation is a Canada-based specialty surgical hospital. The Company through its subsidiaries, Medical Facilities America, Inc. and Medical Facilities (USA) Holdings, Inc. owns controlling interests in six limited liability entities (the Centers), each of which owns a specialty surgical hospital (SSH) or an ambulatory surgery center (ASC) located in the United States. The Centers provide facilities, including staff, surgical materials and supplies, and other support necessary for scheduled surgical, pain management, imaging, and diagnostic procedures, and mainly focus on clinical specialties, such as orthopedic, neurosurgery, pain management and other non-emergency elective procedures.

  • Market Cap: $445,334,822
  • Revenues (2014): $363,162,322
  • Insider Ownership: 0.19%
  • Shares Outstanding: 31,317,498

ATS Automation Tooling Systems Inc. (TSX: ATA) – $15.98

Industrial Machinery & Equipment

ATS Automation Tooling Systems Inc. is a Canada-based company engaged in providing custom designed, built and installed manufacturing solutions. The Company uses its knowledge and global capabilities to serve the automation systems’ needs of multinational customers in industries, such as life sciences, computer and electronics, energy, transportation and consumer products.

  • Market Cap: $1,428,779,302
  • Revenues (2014): $936,077,000
  • Insider Ownership: 0.27%
  • Shares Outstanding: 91,647,165

Whistler Blackcomb Holdings Inc. (TSX: WB) – $19.98

Leisure & Recreation

Whistler Blackcomb Holdings Inc. is a four-season mountain resort that features two adjacent and integrated mountains, Whistler Mountain and Blackcomb Mountain, with 200 marked runs, over 8,000 acres of skiable terrain, 14 alpine bowls and three glaciers and is located adjacent to Whistler Village. Whistler Blackcomb and the Resort Municipality of Whistler are located in the Coast Mountains of British Columbia, Canada, some 125 kilometers from Vancouver and 350 kilometers from Seattle, Washington.

  • Market Cap: $762,681,001
  • Revenues (2014): $257,311,000
  • Insider Ownership: 0.29%
  • Shares Outstanding: 38,049,151

Spectra7 Microsystems Inc. (TSXV: SEV) – $0.54

Semiconductors

Spectra7 Microsystems Inc., formerly Chrysalis Capital VIII Corporation, is Canada-based analog semiconductor company delivering resolution and signal fidelity to consumer and wireless infrastructure products. It is a consumer connectivity company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading consumer electronics manufacturers in Virtual Reality (VR), Wearable Computing and Ultra-HD 4K/8K Displays. The Company has two revenue generating product lines featuring products in volume mass production: interconnect products and wireless products.

  • Market Cap: $70,044,477
  • Revenues (2014): $6,169,938
  • Insider Ownership: 0.71%
  • Shares Outstanding: 125,175,358

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