Working capital is the lifeblood of your business’ operations. It is technically defined as a measure of a company’s efficiency and its short-term financial health. Calculated as (current assets – current liabilities), it might scare investors to know that a company would ever fall into negatives with its operating finances. From a list of 993 Canadian small-cap companies, 195 experience this unfavorable trait, with the following three having a working capital south of -$250,000.
1. Oando Energy Resources Inc. (TSX: OER)
Oando Energy Resources Inc. is an upstream exploration and production company with investments in a portfolio of oil and gas fields, as well as participating interests in onshore and offshore producing assets. The Company’s asset base covers exploration, development and production assets for both oil and gas, situated on and off shore in Nigeria, and the Exclusive Economic Zone (EEZ) of Sao Tome and Principe. The Company holds interests in 16 licenses for the exploration, development and production of oil and gas assets.
Market Cap: $800,472,946.14
Working Capital: -$701,986,248.00
1-Month Price Change: -10.7%
1-Year Price Change: -11.5%
2. Jaguar Mining Inc. (TSXV: JAG)
Jaguar Mining Inc. (Jaguar) is a gold mining company engaged in gold production and in the acquisition, exploration, development and operation of gold mineral properties in Brazil. Jaguar’s three producing properties, Turmalina, Paciencia and Caete, are located in or adjacent to the Iron Quadrangle region of Brazil, a greenstone belt located east of the city of Belo Horizonte in the state of Minas Gerais. Jaguar’s portfolio also includes the Gurupi Project in the state of Maranhao and the PedraBranca Project in the state of Ceara, which is part of a joint venture agreement with Xstrata plc. (Xstrata).
Market Cap: $61,499,342.94
Working Capital: -$336,170,790.00
1-Month Price Change: 29.4%
1-Year Price Change: -88.4%
3. COGECO Inc. (TSX: CGO)
COGECO Inc. is a diversified holding corporation. The Company, through its subsidiaries, operates in two segments: Cable and other. The Cable segment provides a range of Analogue and Digital Television, HSI and Telephony services primarily to residential customers. It also provides business services, including data networking, Ethernet, hosting, high speed Internet (HIS) access and Voice over Internet Protocol (VoIP) services, to small and medium sized businesses. The segment also provides data center, managed IT and connectivity services for medium and large enterprises and public sector customers, and high-performance Ethernet broadband connectivity services to carriers. The Other segment is comprised of radio, advertising transit businesses, head office activities, as well as inter-segment eliminations.
Market Cap: $921,994,180.38
Working Capital: -$277,540,000.00
1-Month Price Change: 6.1%
1-Year Price Change: 20.3%
