4 Canadian Small Caps That Could Be Oversold

While the Canadian small caps on our list have taken a hit recently, a recover may come soon if the RSI is any indication

SmallCapPower | February 2, 2018: Relative Strength Index (RSI) is a measure of price momentum. High values above 70 indicate that a stock may be overbought, while low values below 30 indicate it may be oversold. The Canadian small caps we have identified today have low RSI scores, representing possible value buys.

Northern Dynasty Minerals Ltd. (TSX:NDM) – $1.22
Diversified Mining

Northern Dynasty Minerals is a Canada-based mining company operating in Alaska. The Company’s primary asset, the Pebble mine, is a copper-gold-molybdenum-silver mine, hosting 57 B lbs Cu, 70 Moz Au, 3.4 B lbs Mo, and 344 M oz Ag. The Company dropped 16% after the EPA announced that sockeye salmon fisheries would receive additional protection.

  • Market Cap: $371.1 Million
  • YTD Total Return: -45.5%
  • Avg Volume last 30 days: 482,387
  • RSI Simple – 30 Days: 13.8

COGECO Inc. (TSX:CGO) – $75.04
Broadcasting

COGECO is a Canada-based telecom company operating in Ontario and Quebec. The Company offers cable, Internet and telephone services across its Cogeco and Atlantic Broadband brands. The Company’s stock dropped 15% after its quarterly earnings announcement.

  • Market Cap: $634.4 Million
  • YTD Total Return: -16.7%
  • Avg Volume last 30 days: 17,992
  • RSI Simple – 30 Days: 14.4

TSO3 Inc. (TSX:TOS) – $1.58
Medical Equipment, Supplies & Distribution

TSO3 is a Canada-based medical equipment company. The Company’s primary product, the STERIZONE VP4 Sterilizer, sterilizes medical equipment using proprietary consumables. It sterilizes equipment in larger volumes at lower costs than standard equipment. TSO3 stock dropped 36% after the Company announced 2017 sales figures and several analysts lowered their price targets.

  • Market Cap: $146.5 Million
  • YTD Total Return: -39.5%
  • Avg Volume last 30 days: 250,506
  • RSI Simple – 30 Days: 23.1

Pizza Pizza Royalty Corp. (TSX:PZA) – $14.47
Restaurants & Bars

Pizza Pizza Royalty is a Canada-based restaurant company. The Company owns the trademarks and trade names used by its two brands, Pizza Pizza and Pizza 73. PZA has ~750 stores in which it collects royalties.

  • Market Cap: $356.2 Million
  • YTD Total Return: -10.2%
  • Avg Volume last 30 days: 32,490
  • RSI Simple – 30 Days: 23.7

Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.

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