Invest in Canada: A Call to Action for the Next Generation of Growth 🧵 In a year marked by geopolitical instability and economic uncertainty, one thing has become undeniably clear: it’s time to stand up for Canada.

Here's a popular article we wrote years ago that still applies today:
Reverse Engineering the Perfect Stock
🧵 We are going to tell you about the perfect stock that could make you millions of dollars. Few investors know about this stock even though it’s a multi-bagger in plain sight. Okay, on with it – what is it!? Here are a few clues…

The Importance of Quality Shareholders 🧵 In the investment world, most great investors had mentors. Not surprisingly, many companies too require good mentors.

Get the Pitchfork—Private Equity is Coming Big money is finally flowing into the Canadian microcap market after a long period of depressed valuations, limited investor interest, and relatively scarce capital. However, it’s arriving in an unexpected form—private equity from the U.S. is buying Canadian microcap companies, taking them private, and removing them from the hands of retail investors.

Here's an odd, profitable, boring, undiscovered and cheap looking stock that I don't see mentioned very much. $CAF.V $CAFZF Canaf is a public company listed on the TSX Venture Exchange. Canaf's registered office is in Vancouver, Canada, with offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing Pty. Ltd., a South African company that owns 70 per cent of Southern Coal Pty. Ltd., a company that produces a high-carbon, devolatized (calcined) anthracite. Canaf also owns 100 per cent of Canaf Investments Pty. Ltd., a South African company that owns 100 per cent of Canaf Estate Holdings Pty. Ltd., a real estate investment company focused on suburban property in Johannesburg.

Understanding Insider Activity

(Thread) For most retail investors, the word “insider” is often associated with insider trading and the famous scandals that come with it. At the same time, investors who try to analyze insider activity often misinterpret it, jumping to conclusions based on a cursory glance.

Article - Navigating the Microcap Space
Over the last several years, we have continued to generate considerable returns in our portfolio of stocks, and this success is thanks to an accumulation of wisdom—through constant, hands-on learning and studying the successes of those who have come before us. We’ve shared our approach in many articles, from understanding the discovery process to investing with a margin of safety, understanding multiple expansion—and more.

Here's an article we wrote in August of last year....

The Makings of a Ten-Bagger In our recent article, we highlighted the importance of understanding where a stock is in the discovery process. The level of discovery can be the difference, after all, between finding a stock that provides a decent gain vs one that produces life-changing returns.

One of our most popular articles we've ever written.

Explosive Stock Price Moves – Understanding the Discovery Process We have all heard the statement that beating the market is difficult as future expectations are largely priced in. But this presupposes that a stock is known in the first place.

We wrote this article in May 2023. I think it still applies today...
Cannabis: A New Opportunity for Value Investing Amidst the Ashes There’s an interesting development happening among smallcap companies in the beaten-down cannabis sector, one that does not happen too often but presents a rare opportunity to find value amid a heap of debris.

There's more to multi-baggers than just a growing company. A big part of a share price going up by a lot has to do with multiple expansion. Here's an article we wrote a few years ago on the subject - Understanding Multiple Expansion While it’s important to be prudent and reasonable with growth expectations, it’s also good to remember that smallcap stocks can produce phenomenal gains.

I wrote this article in November 2022 but it still applies today.

Are More Canadian Microcap Companies Considering Going Private? I continue to deploy my cash as fast as I can find it. Volatility has provided what I believe are truly outstanding opportunities. This past week I added to a relatively new name, a micro-cap that announced a 57% increase in revenues and a 226% increase in net income.

Don’t settle to double your money, look for the next 10-50-100 bagger.

A Strategy to Find The Next Multi-bagger In case you missed it, we recently put out a video covering an investment approach that, in Paul’s words, “created a wholesale shift” in how he approached investing. This approach is not the buy low and sell high cliché—it’s about thinking differently.

Another old article....
Cruising the 52-Week Highs
It’s not easy finding positive trends among the volatile market sentiment, but it is easy to get distracted—with news on rampant inflation, an incoming recession, the re-emergence of COVID-19, the Russian-Ukraine conflict, and so on. However, there are good opportunities if you know where to look. So instead of bowing down to the uncertainty roiling global markets, we think it’s a good time to reflect on one strategy we’ve been using to hunt for the next great investment.

This approach starts with a simple rule . . .

In follow up to the article I posted last week on the Art of the Roll-Up, here is another article we wrote more recently on the subject - Small Business Roll-ups – A Generational Opportunity As the Baby Boomers continue their mass retirement wave, have you thought about what will happen to the myriad small businesses they own?

We may be heading towards an era that sees increasing dominance of big box stores and chains, but that doesn’t mean there isn’t a great opportunity in finding a way to invest in successful small businesses.

We wrote this a few years ago so some of the data is a bit dated. Let me know what you think.

The Art of the Roll-up

The Art of the Roll-up: 7 Keys to Success Ask a fellow investor to invest with you in a roll-up strategy and one of two things will happen:

A) He’ll mortgage his home and give you every cent he’s got

OR

B) He’ll say… “GET OUT.” Ouch, don’t let the door hit you on the way out…

Death by Dilution

Thread... Smallcaps, microcaps and nanocaps provide the ultimate high-risk, high-reward scenario. This part of the market is where ideas live or die. It’s where the Apples and Amazons of the world get started and where new breakthroughs and innovations get traction.

This year, in August, we found what we believe is a "Fat Pitch". It was a company that we had been following for years. Up until the pandemic they were growing revenues nicely and had just turned profitable. The pandemic hurt the company and revenues and earnings suffered. The shares price followed their revenues and earnings, lower. Coming out of the pandemic, by August, the company regained its growth and turned nicely profitable again. It grew it's revenues by over 60% in that quarter and showed a very healthy profit.

Maybe I should put together a bit of a list of boring, illiquid and profitable little microcaps. You know, the kind that everyone seems to warn you about.... $HMM.a.T

Here's a list of cheap, small energy service companies worth looking at. Feel free to add some names. I'll start with: $BRY.T $BRYFF C$0.475, Q4 Rev growth 96%, PE 8.6X CWC Energy Services, $CWC.T $CAWLF - $0.29, Rev growth 66%, PE 19.5X

Wanna make a list of microcaps that are growing revenues by double digits and trading at single digit PE ratios? I'll start.... $IVX.V Revs up 74.5% PE of 4.4X