Subject: Smallcap Discoveries: Weekly Update - March - 28 - April 1

March - 28 - April 1

 

Market Commentary

Major North American markets finished the week very close to where they ended last week. The DOW and Nasdaq eked out less than 1% gains while the TSX was down a meagre 0.2% on the week.


Russia invaded Ukraine on February 24. It's been 38 days and there appears to be no end in site. I'm sure many pundits had expected a "super power" like Russia to have quickly rolled over this smaller adversary. I find it quite startling that war rages on and the markets (and some of the media) seemed to have shrugged it off and are finding other concerns to occupy themselves. I continue to expect we will be seeing more shocks to the financial systems as the damage and loss of life mounts...

WTI oil closed below $100 per barrel for the week as the US has announced they will be releasing 180 million barrels of oil from the Strategic Petroleum Reserve (SPR). While this  has given some relief for oil buyers in the short term it will likely leave a more bullish longer term base for oil as the SPR will eventually need to replace that oil for future insurance. This level of release is a clear indication to me how concerned the US administration is about the inflationary and security impact of the energy crisis that the Ukraine conflict has caused even though the this crisis was years in the making as there has been such a dramatic lack of investment in North American production over the last 7-8 years that I've been droning on and on about lately.   

More signs that the XBI could be bottoming? Life science ETF, XBI gained 4.1% on the week outperforming Nasdaq and a number of other sectors. This ETF has seemed to have found a range between $88 and $93 the past 2 weeks and appears to be developing a reverse head and shoulder pattern which is a well known bottoming pattern. Along with improving technicals we see that the sector is trading at EV/cash levels last seen 20 years ago. Risk/reward seems to be improving significantly.

And a number of investment pundits are brave enough to go on TV and predict that the worst is over and that it's time to get bullish. 


Click for CNBC Video


Let's hope they're right this time.....


And finally this past week we had to say goodbye to one of our long time favorite companies, Vigil Health Solutions, (TSX.V: VGL). The company is being acquired by ASSA Abloy Group through an all cash offer of $0.67 per share. Effective at the close of business, Monday, April 4, 2022, the common shares of Vigil will be delisted from the TSX Venture Exchange.

 

Buys and Sells This Week

No new buys or sells this past week

 

Smallcap Discoveries


Select Portfolio

Renoworks Software (TSX.V: RW) Price - $0.41 Market Cap - $16M


Kidoz (TSX.V: KIDZ) Price - $0.50 Market Cap - $66M

  • Kidoz Inc. Announces Record Full Year 2021 Financial Results

  • Q4 Revenue of $5.92M

  • Q4 Gross profit of $2.39M

  • Q4 Net income of $776K

  • FY Revenue of $12.4M

  • FY Adj. EBITDA of $1.5M

  • FY Net loss ($190K)

  • Press Release https://tinyurl.com/yb627shn


Good, solid numbers for the year. We continue to be impressed with the revenue growth and the company is now nicely profitable on an annual basis. We wish the capital structure was tighter and they would be a bit more conservative with their IR spend. That said we think the strong growth will eventually outweigh the capital structure and capital markets issues.


ImmunoPrecise Antibodies (TSX.V: IPA) Price - $6.51 Market Cap - $129M

  • IPA Announces Agreement to Acquire BioStrand BV – Revolutionizing Biotherapeutics with Methodology to Encode Omics and Power Drug Development with Advanced Artificial Intelligence

  • Press Release https://tinyurl.com/2p9556js


The more we come to understand this latest acquisition the more excited we get. The company has now added in-house artificial intelligence capabilities to its suite of drug discovery platforms. "BioStrand offers an AI-powered revolutionary methodology for rapidly analyzing and mining a broad range of biological data to identify patterns and variations in multiomics data and detect structural anchor points that will drive innovation in numerous fields including precision medicine, drug and vaccine development, and target discovery." So much to unwind here but suffice to say that one publication has referred to Biostrand as the "Google of Genomics". We look forward to speaking with CEO Dr. Jennifer Bath to learn more. We are trying to schedule a SCD Zoom Interview with IPA management on Monday.


Spectra Products (TSX.V: SSA) Price - $0.04 Market Cap - $3M


Spectra continues to generate operating profit and cash. The company's cash position continues to increase and some of that cash will be used to buy back company shares. Cash and investments now exceed $1.2 million vs a market cap of approximately $3.1 million. We patiently wait for some kind of catalyst. 

 

Smallcap Discoveries


Select Watchlist

Bri-Chem Corp (TSX.V: BRY) Price - $0,47 Market Cap - $11M

  • Bri-Chem Announces 2021 Annual and Fourth Quarter Financial Results

  • Q4 Revenue of $18.5M

  • Q4 Adj. EBITDA of $1.4M

  • Q4 Net income of $784K

  • FY Revenue of $60.4M

  • FY Adj. EBITDA of $3.94M

  • FY Net income of $1.3M

  • Press Release https://tinyurl.com/mwjafsuf


INEO Tech (TSX.V: INEO) Price - $0.26 Market Cap - $15.6M


Jemtech (TSX.V: JTC) Price - $1.98 Market Cap - $5.5M


Boardwalktech Software (TSX.V: BWLK) Price - $0.68 Market Cap - $29M


Gatekeeper Systems (TSX.V: GSI) Price - $0.53 Market Cap - $48M


Geomega Resources (TSX.V: GMA) Price - $0.325 Market Cap - $43M


Intouch Insight (TSX.V: INX) Price - $0.55 Market Cap - $14M

  • INTOUCH INSIGHT LTD. ANNOUNCES 25% REVENUE GROWTH FOR 2021 AND FORECASTS 40% GROWTH FOR 2022

    Q4 Revenue of $5.4M

  • Q4 Net loss of ($34K)

  • Q4 EBITDA of $661K

  • FY Revenue of $16M

  • FY Gross margin of $8.6M

  • FY Net loss of ($315K)

  • Press Release https://tinyurl.com/zt9zaysr


Salona Global Medical Device (TSX.V: SGMD) Price - $0.65 Market Cap - $35M

  • Salona Global Medical Device Corporation Posts 52% Quarterly Revenue Growth and 44% Quarterly Gross Profit Growth for the Fiscal Fourth Quarter Ending February 28, 2022; Provides a Business Update Including Acquisitions and New Products; Intends to Release New Investor Presentation in Advance of Institutional Investor Presentations

  • Press Release https://tinyurl.com/2yj2kbbf


Biorem (TSX.V: BRM) Price - $0.83 Market Cap - $32M


MediaValet (TSX: MVP) Price - $1.65 Market Cap - $63M


Smart Employee Benefits (TSX.V: SEB) Price - $0.18 Market Cap - $31M


Zoomd Technologies (TSX.V: ZOMD) Price - $0.55 Market Cap - $52.5M


Microbix (TSX: MBX) Price - $0.64 Market Cap - $87.5M


Thermal Energy International (TSX.V: TMG) Price - $0.105 Market Cap - $17M


Vitalhub International (TSX.V: VHI) Price - $3.05 Market Cap - $113M

  • VitalHub Grows Revenue to $24,664,593 for Fiscal 2021, an increase of 79% from Fiscal 2020

  • Q4 Revenue of $6.93M

  • Q4 Adj. EBITDA of $1.35M

  • Q4 EBITDA of $470K

  • Q4 Net loss of ($605K)

  • FY Revenue of $24.66M

  • FY Adj. EBITDA of $4.54M

  • FY EBITDA of $1.14M

  • Press Release https://tinyurl.com/39r9rdcu


Water Ways Technologies (TSX.V: WWT) Price - $0.305 Market Cap - $44M


Wishpond Technologies (TSX.V: WISH) Price - $1.05 Market Cap - $54M


AirIQ (TSX.V: IQ) Price - $0.29 Market Cap - $8.6M


Kraken Robotics (TSX.V: PNG) Price - $0.445 Market Cap - $89.5M

 

Company Interviews & Updates

Upcoming

Topic: Givex (TSX: GIVX) Interview with CEO Don Gray

Time: Apr 7, 2022 01:15 PM Vancouver


Join Zoom Meeting

https://us02web.zoom.us/j/87557704770?pwd=YzY0TG8xTEVsMFRESTVpbUhNS29Fdz09


Meeting ID: 875 5770 4770

Passcode: 579738


Topic: ImmunoPrecise Antibodies -- No set date. Trying to book for Monday, stay tuned and follow the forum for a link if the date is set.

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