#Micro cap stocks canada software

The Canadian stock market features actively traded companies such as WestJet Airlines, Cenovus Energy, Royal Bank of Canada, Yamana Gold, Loblaw Companies, and Bombardier. This is the fastest growing stock exchange in Canada and it supports micro cap and emerging companies. The third exchange is the Canadian Securities Exchange (CSE), operated by CNSX Markets Inc. Both these exchanges are operated by the TMX Group. The second Canadian stock exchange is the TSX Venture Exchange (TSXV). It represents over 2,000 listed companies. More mining, oil, and gas companies are listed on the TSX than on any other stock exchange worldwide.

It is composed of the Toronto Stock Exchange (TSX), currently the ninth largest exchange in the world by market capitalization. Hugh Smith, MBA, works in the financial and risk unit of Thomson Reuters and specializes in wealth and asset management.The Canadian stock market is among the world's biggest and most important stock markets. Investors should conduct further research before investing. This commentary does not provide individualized advice or recommendations for any specific subscriber or portfolio. After the acquisition Hardwoods announced it would increase its annual dividend from 22 cents a share to 25 cents. presence in addition to operations in five provinces. Hardwoods recently completed an acquisition of New Hampshire-based Rugby Architectural Building Products for more than $100-million (U.S.).

One particularly interesting stock is Hardwoods Distribution Inc. This screen produces eight companies, all trading on the TSX. Thomson Reuters Eikon is the platform used by financial and corporate clients to access top research, portfolio analytics, charting and screening for every asset class.

#Micro cap stocks canada software

Our content, software and technology support the way professionals work in a rapidly changing, ever more complex world. Thomson Reuters delivers trusted news and intelligent information to more than one billion people in 140 countries every day. Paying a regular dividend is an indication that management will be responsible stewards of capital. We look for companies with a score higher than 80.įinally, we filter out companies that don't pay a dividend. This is done by considering: accruals versus cash flow – i.e., accounting profit versus actual cash earned operating efficiency and the degree to which reported earnings reflect the company's core operations. StarMine's Earnings Quality Rank scores stocks from one to 100 based on sustainability of earnings. To screen for companies with attractive relative valuations we look for a price-to-earnings ratio of less than 15, and an enterprise-value-to-sales ratio of less than two. This means a market cap between roughly $30-million and $3-billion. We look for Canadian companies that qualify for the small-cap index. Cash sales are preferred to sales on credit revenues from core business activities are preferred to revenues from one-off activities. Earnings quality is a measure of how reliable and repeatable a company's reported earnings are. The only factor more reliable is earnings quality, perhaps because of the uncertain landscape we currently face.

Thomson Reuters's StarMine quantitative model shows that over the past month relative valuation (that is, the value of a company's stock relative to that of its peers) has been a good predictor of performance in the Canadian small-cap space. Small caps carry more risk than larger companies, but for the reasons mentioned, it is possible to find undervalued 'diamonds in the rough.'

Also, big institutional managers often have too much capital to deploy to be able to invest in smaller companies, or are restricted from doing so by their mandate. Smaller companies tend to be less followed by Bay Street and Wall Street analysts. Even these encouraging figures, however, pale in comparison to Canada's S&P/TSX small cap index, which is up 34 per cent year-to-date. North America is a brighter picture, with the S&P 500 up 6 per cent and the S&P/TSX composite up 12 per cent. In Europe, Britain's FTSE 100 is up 7 per cent and continental Europe's Stoxx 600 is down 7 per cent. In Japan, the Nikkei is down 13 per cent. Small-cap Canadian companies with favourable relative valuations and high earnings quality.Īs we look across the globe, world equity markets have had a variety of experiences thus far in 2016.