Canadian microcaps have had a rough go over the past couple of months. The TSXV is down 15% since the beginning of September and down 27% since January highs.
The more volatile CSE has lost that same 27% amount in the last FIVE weeks. It’s been one large Danger Zone.
With the major indexes only slightly off all time highs, it’s odd to see the CNN fear and greed index move into the Extreme Fear zone, but that is where we are.
That tends to shift investments away from higher risk into safer vehicles and that’s what I believe we are seeing today. It’s always more important to separate the performers from the shitco’s in the microcap arena, but it is even more important at times like these. That infamous bagholder quote “know what you own” is more relevant.
If you’re new to my WWW articles, it is where I look at expected earnings over the next thirty days, and where appropriate, put them into Buy and Danger Zones. Here is the list of stocks I will be covering this month:
CanPR Technologies
D-Box Technologies
Pulse Seismic
Thermal Energy Group
FOBI AI
Total Telcom Inc.
CleanTek Industries
MDA Space
Intermap Technologies
Neupath Health
Auxly Cannabis
iFabric
CANPR Technologies - WPR.V
Including WPR here is a little misleading as there is a very good chance they will not report their financials after all.
Back in January, despite their promising P&L (about 1M of net income on $8M in revenue at the time), I pointed out two red flags on why readers should avoid CANPR Tech.
The first was their accounts receivables, which accounted for 85% of their current assets. They were generating revenues but not collecting much if any cash. Between friends, I find that to be an important part of running a successful business. Secondly was their 20% SBC plan which had already maximized their DSU contributions and were looking for more at their upcoming AGM.
The numbers proceeded to get worse and in April I suggested to readers that they don’t walk, but run away.
Since then the stock is down 86%, the company is under a cease trade order for failing to file their annual statements, and they restated last years annual filings to vastly increase expected credit losses.
Buyer beware if they get around to filing their annuals and Q1 financials which would be due at the end of October.
D-Box Technologies - $DBO.TO
DBO is an eight bagger from my mid year Seal of Approval pick last year with a few timely Buy Zone’s along the way.
After being a near continuous buyer for over a year, I did take some profits after the run up after June earnings due to position sizing and portfolio weight.