The Canadian stocks on our list have some of the highest Betas of all listed companies in Canada
SmallCapPower | December 19, 2017: Beta is a measure of the volatility of a particular security compared to the market as a whole. A Beta of 1 suggests that the security’s price moves with the market, while a Beta of >1 indicates that the security is more volatile than the market and vice versa. Today, we have identified four Canadian stocks with some of the highest Betas along with their respective performances. According to our research, Canadian stocks with the highest betas are dominated by the energy, battery metals, and marijuana sectors. While the Beta of a security remains a popular measure of risk, it can also be used to identify securities and industries receiving the most investor attention.
Emerald Health Therapeutics Inc. (TSXV:EMH) – $4.94
Emerald Health Therapeutics is a Canada-based company developing production capacity for medical marijuana cultivation. The Company recently announced a 50/50 joint venture (called Pure Sunfarms) with Village Botanicals for the establishment of a large-scale production facility. Under the agreement, Village provided a 1.1 million square foot green house facility (previously used for tomato cultivation), which will be retrofitted for the cultivation of cannabis. The company estimates that the initial facility could yield more than 75,000 KG of dried cannabis. Emerald Health also has options to purchase an additional 3.7 million square feet of greenhouse space that are adjacent to the current facility being built.
- Market Cap: $464 Million
- Beta 5 Year Monthly: 6.08
- YTD Total Return: 280%
- 3 Month Total Return: 311.7%
Baytex Energy Corp. (TSX:BTE) – $3.75
Oil & Gas Exploration and Production
Baytex Energy Corp is an oil & gas company based in Calgary, Alberta. The Company focuses on the acquisition, development and production of assets in the Western Canadian sedimentary basin and Texas, United States. Baytex’s operations are at Peace River and Lloydminster in Alberta, and Eagle Ford in Texas.
- Market Cap: $883 Million
- Beta 5 Year Monthly: 4.56
- YTD Total Return: -42.8%
- 3 Month Total Return: 9.3%
Lithium Americas Corp. (TSX:LAC) – $11.28
Specialty Mining & Metals
Lithium Americas Corporation is currently developing two lithium projects, which include the Cauchari-Olaroz project in Argentina and the Lithium Nevada project in the United States. On July 17, 2017, LAC announced a financing agreement with Bangchak Corporation (BKK:BCP) for US$113mm, to fund the development of the Cauchari-Olaroz project to production. The Company plans to complete Phase 1 of the project by 2019, after which it expects to produce 25,000 tonnes of battery-grade lithium per year.
- Market Cap: $996 Million
- Beta 5 Year Monthly: 4.03
- YTD Total Return: 182.0%
- 3 Month Total Return: 40.1%
Mason Graphite Inc. (TSXV:LLG) – $2.50
Specialty Mining & Metals
Mason Graphite is a Canada-based, development-stage company, focused on its Lac Gueret graphite property in Quebec, Canada. The Company has completed an Environmental Impact Study as of Q2/2017 and plans to begin construction in late 2017. Mason Graphite is currently in the process of financing negotiations to fund the project, which is expected to cost $166 Million.
- Market Cap: $290 Million
- Beta 5 Year Monthly: 3.14
- YTD Total Return: 92.3%
- 3 Month Total Return: 38.9%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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