SmallCapPower | February 3, 2016: A stock’s valuation is calculated by taking its market cap, subtracting out cash, and adding back debt. This figure is referred to as the Enterprise Value (EV), and it is often used as an estimate for how much it would take to buy a company outright. If you believe in the efficient market hypothesis, then having a company with a negative EV is somewhat puzzling, and may represent an arbitrage opportunity. This could include the stocks on our list today, which are currently displaying a negative EV.
Transat AT Inc. (TSX: TRZ) – $7.14
Leisure & Recreation
TRANSAT AT Inc is a Canada-based integrated tour operator that specializes in holiday travel and offers 60 destination countries. The Company owns an air carrier and provides destination services. Its key markets are sun destinations in Mexico, the Caribbean and Florida. It offers all-inclusive packages, tours or cruises year-round, but primarily in the winter months with departures from Canada.
-
Market Cap: $270,282,045
-
Revenue (LTM): $3,566,368,000
-
Total Equity (LFQ): $537,252,000
-
Enterprise Value: -$66,140,955
WesternZagros Resources Ltd. (TSXV: WZR) – $0.095
Oil & Gas Exploration and Production
WesternZagros Resources Ltd. is a Canada-based international oil and gas company that is focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in the Kurdistan Region of Iraq. The Company, through its wholly-owned subsidiaries, holds about a 40% working interest in the Garmian production sharing contract (PSC) and the Kurdamir PSC.
-
Market Cap: $51,099,207
-
Revenue (LTM): $17,178,449
-
Total Equity (LFQ): $464,772,506
-
Enterprise Value: -$34,465,918
EcoSynthetix Inc. (TSX: ECO) – $1.27
Specialty Chemicals
EcoSynthetix Inc. (EcoSynthetix) is a renewable chemicals company, which specializes in bio-based materials that are used as inputs in a range of products. Bio-based materials are commonly used as inputs in industrial manufacturing for a range of end products. The Company has developed two bio- based technology platforms that support application across industries, a biopolymer nanosphere technology that has been fully scaled and validated, and a bio-based sugar macromer technology that has been validated on a pilot scale and is being developed for the pre-commercialization plant stage.
-
Market Cap: $66,659,820
-
Revenue (LTM): $20,029,084
-
Total Equity (LFQ): $103,613,233
-
Enterprise Value: -$19,932,480
QLT Inc. (TSX: QLT) – $3.72
Biotechnology & Medical Research
QLT Inc. (QLT) is a biotechnology company engaged in the development and commercialization of ocular products. QLT is engaged in the development of QLT091001 for the treatment of Leber congenital amaurosis (LCA) and retinitis pigmentosa (RP). QLT091001 is an orally administered synthetic retinoid replacement for 11-cis-retinal, a biochemical component of the visual retinoid cycle, and is used for the treatment of certain age-related and inherited retinal degenerative diseases.
-
Market Cap: $186,140,722
-
Revenue (LTM): $0
-
Total Equity (LFQ): $193,051,955
-
Enterprise Value: -$18,945,604
Trillium Therapeutics Inc. (TSX: TR) – $10.96
Pharmaceuticals
Trillium Therapeutics Inc. (Trillium), formerly Stem Cell Therapeutics Corp., is a Canada-based immuno-oncology company developing therapies for the treatment of cancer. The Company’s lead program, SIRPaFc, is an antibody-like protein that harnesses the innate immune system by blocking the activity of CD47, a molecule whose expression is increased on cancer cells to evade the host immune system. SIRPaFc is in pre-clinical development as a treatment for acute myeloid leukemia (AML).
-
Market Cap: $84,430,668
-
Revenue (LTM): $0
-
Total Equity (LFQ): $87,441,020
-
Enterprise Value: -$4,363,632
DISCLAIMER The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source.
