The Canadian small caps on our list have insider ownership that exceeds 50%
SmallCapPower | April 26, 2019: Corporate insider ownership typically covers investors with a 10% or greater equity stake, members of the Board of Directors or the management team. Significant insider ownership often signals confidence in company prospects, as it is seen as an incentive with profitability and maximization of shareholder wealth. Today we have identified four Canadian small caps trading on the TSX with insider ownership greater than 50%.
*Share prices as at close April 25, 2019, data obtained from S&P Capital IQ
Magellan Aerospace Corporation (TSX:MAL) – $18.77
Aerospace and Defense
Magellan Aerospace designs, engineers, and manufactures aero engine, and aero structure assemblies and components for the aerospace sector across North America, Europe and Asia. Headquartered in Mississauga, Canada, MAL is a current component supplier for the Airbus A380, Boeing 787 Dreamliner, F-35 Joint Strike Fighter, and Bombardier’s full line of business and commuter aircraft. On April 24, Magellan Aerospace announced a multi-year agreement with Boeing to manufacture 777X control surface ribs.
- Insider Ownership: 77.88%
- Market Capitalization: $1.1B
- Year to Date Return: 26.51%
- 90 Day Trading Volume: 20,000
Avcorp Industries Inc. (TSX:AVP) – $0.06
Aerospace and Defense
Avcorp designs and builds airframe structures for commercial and defense markets on a global scale. AVP builds major airframe structures for leading aircraft manufacturers, such as BAE Systems (LON:BA), Boeing (NYSE:BA), Bombardier (TSX:BBD.B), Lockheed Martin (NYSE:LMT), and Subaru (TYO:7270). On April 1, AVP announced its financial results for 2018, with operating income of $27M compared to an operating loss of $54M in 2017. Avcorp is located Delta, British Colombia and is a subsidiary of Panta Canada B.V.
- Insider Ownership: 71.59%
- Market Capitalization: $22.1M
- Year to Date Return: 20%
- 90 Day Trading Volume: 40,000
Evertz Technologies Limited (TSX:ET) – $17.60
Electronic Equipment and Instruments
Evertz is headquartered in Burlington, Ontario and specializes in designing, manufacturing, and distribution of video and audio infrastructure for production, post-production, broadcast, and telecommunications markets. Evertz Technologies provides end-to-end solutions with the goal of enabling customers to generate revenues and lower costs through efficient signal routing, distribution, monitoring and management of content. On March 13, ET reported $121M revenue for the third quarter ended January 31, 2019, a YoY growth rate of 21%.
- Insider Ownership: 66.15%
- Market Capitalization: $1.36B
- Year to Date Return: 10.9%
- 90 Day Trading Volume: 20,000
Baylin Technologies Inc. (TSX:BYL) – $3.81
Electronic Manufacturing Systems
Baylin Technologies focuses on research, design, development, manufacturing and sales of passive and active radio frequency products and services in North America and Asia. On April 1, Baylin announced the closing of a $48M senior debt financing with RBC and HSBC. BYL will use a portion of the loan to prepay a $33M loan from Crown Capital, which Baylin Technologies used to acquire assets of radio frequency, terrestrial microwave, and antenna equipment divisions in January 2018.
- Insider Ownership: 50.15%
- Market Capitalization: $153.5M
- Year to Date Return: 4.08%
- 90 Day Trading Volume: 24,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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