5 Small Cap Stocks That Could Turnaround Big in 2016

Published:

The past year has been a challenging one, to say the least, for the stocks on our list today, falling 37% on average. We believe the market may have misjudged the outlook for these companies, all of which have shown good operational growth that is likely to continue into 2016.

The World in 2016. The purpose of this article is to provide some insights into the industries that may perform well in 2016. Additionally, we will provide some stock picks for our valued readers. Enjoy!

SciVac
Callidus Capital Corp. (TSX: CBL) – $8.02
Corporate Financial Services
Callidus Capital Corporation (Callidus) is a Canada-based company engaged in providing financing solutions for companies that are unable to obtain financing from lending institutions. The Company operates a finance business that provides senior secured asset-based loans and lending services to mid-market companies operating in Canada and the United States, offering loans ranging in size from $5 million to $100 million.

  • Market Cap: $395,987,450
  • Revenue Growth (2014 FY – LTM): 53%
  • Operating Income Growth (2014 FY – LTM): 77%
  • Stock Price Performance (2015): – 50%

SciVac
AutoCanada Inc. (TSX: ACQ) – $20.77
Auto Vehicles, Parts & Service Retailers
AutoCanada Inc. (AutoCanada) is a Canada-based, multi-location automobile dealership company that operates approximately 48 dealerships, consisting of 56 franchises that include 12 in British Columbia, 25 in Alberta, four in Saskatchewan, four in Manitoba, five in Ontario and six in other provinces, including Quebec, New Brunswick, and Nova Scotia. AutoCanada is engaged in new vehicle sales; used vehicle sales; parts, service and collision repair, and finance and insurance.

  • Market Cap: $592,030,765
  • Revenue Growth (2014 FY – LTM): 30%
  • Operating Income Growth (2014 FY – LTM): 8%
  • Stock Price Performance (2015): – 46%

SciVac
Biosyent Inc. (TSXV: RX) – $6.75
Pharmaceuticals
BioSyent Inc. is a specialty pharmaceutical company that, through its subsidiary BioSyent Pharma Inc., sources, acquires or in-licenses pharmaceutical products and markets these products in Canada. Through its subsidiary, Hedley Technologies Ltd., the Company also operates legacy business marketing bio and non-chemical insecticides. Its products include FeraMAX 150, Cathejell, FeraMAX Powder, RepaGyn, Proktis-M and Aguettant System. FeraMAX 150 is an oral hematinic indicated for the prevention and treatment of iron deficiency anemia (IDA).

  • Market Cap: $95,278,471
  • Revenue Growth (2014 FY – LTM): 20%
  • Operating Income Growth (2014 FY – LTM): 19%
  • Stock Price Performance (2015): – 42%

SciVac
ATS Automation Tooling Systems Inc. (TSX: ATA) – $10.86
Industrial Machinery & Equipment
ATS Automation Tooling Systems Inc. is a Canada-based company that is engaged in providing automation solutions. The Company provides custom automation, repeat automation, automation products and value-added services, including pre automation and after-sales services. ATS serves the automation systems’ needs of various customers in industries, such as life sciences, computer and electronics, energy, transportation and consumer products. The Company has approximately 27 manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China.

  • Market Cap: $1,005,479,311
  • Revenue Growth (2014 FY – LTM): 13%
  • Operating Income Growth (2014 FY – LTM): 20%
  • Stock Price Performance (2015): – 27%

SciVac
Input Capital Corp. (TSXV: INP) – $1.68
Food Processing
Input Capital Corp. (Input) is a Canada-based agricultural commodity streaming company engaged in the streaming of agricultural products, primarily, canola, across western Canada. Input enters into canola streaming contracts, whereby it makes upfront payments to canola farmers in return for a fixed amount of canola produced by the farmer each year of the term of the streaming contract. Input sells its canola to grain handling companies and canola crushing plants located across Alberta, Saskatchewan and Manitoba, and in the northern-most states of the United States.

  • Market Cap: $137,554,594
  • Revenue Growth (2014 FY – LTM): 68%
  • Operating Income Growth (2014 FY – LTM): 647%
  • Stock Price Performance (2015): – 19%

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