Predictions for our small cap value stock - Top Ideas
We connect our 7 Top Ideas from 2012 with 7 Predictions for 2013:
1. Our Top Ideas stock, which could double in value in 2013.
Prediction: Wanted Technologies Corp. (TSXV: WAN - $0.34)
Why: Wanted Technologies Corp. is truly an undiscovered stock. The Company's recurring revenue base generated from subscriptions for Wanted Analytics™, online analytical tools used by Corporate Human Resource (HR) professionals, grew 36% to $6.3 million in fiscal 2012. What has gone largely unnoticed by the investment community is that the Wanted Technologies has turned profitable, and additional revenue growth in 2013 should have a very positive impact on Company's earnings. Last blog post: Wanted Technologies: A small cap that is delivering sales growth, profits and yet is still value priced.
2. Our Top Ideas stock, which could have a shareholder-value enhancing event in 2013.
Prediction: RDM Corporation (TSX: RC - $1.45)
Why: RDM Corporation had a turnaround year in 2012 and so did the Company's stock price, up 65%. In fiscal 2012, RDM Corporation earned a tidy profit of $0.08 per share but also generated $4.2 million in cash from operations for its payment processing services that captures cheque images for the electronic transmission of deposits to financial institutions. The Company holds $19 million ($0.90/share) in cash and has no debt making RDM a perfect candidate to carry out a shareholder value-enhancing event in 2013; a special/quarterly dividend or acquisition. Last blog post: RDM Corporation year-end results are on the mark, and then some.
3. Our Top Ideas stock, which could have a breakout year in 2013.
Prediction: Questor Technology Inc. (TSXV: QST - $0.40)
Why: 2012 has been a very good year for Questor Technology Inc. Year-to-date, the Company reported earnings of $742,000 or $0.03 per share and outlook for the fourth quarter is very robust. The oil and gas industry which recognizes Questor's proprietary clean air incinerator technology as best-in-class, is under new regulations enacted by the Environmental Protection Agency (EPA) in the United States to reduce harmful air pollution from oil and gas fields. The Company reported that the majority of new incinerator sales orders received are emanating from the United States due to the high levels of shale exploration and development operations. Sales in 2013 could soar with the need to address the new EPA air quality requirements. Last blog post: For Questor Technology, the USA is the land of opportunity and cleaner air.
4. Our Top Ideas stock, which could benefit most from a US economic recovery in 2013.
Prediction: Caldwell Partners International Inc. (TSX: CWL - $0.90, +6.6% yield)
Why: With 70% of total revenues generated from its US operations, the fastest-growing executive search firm in North America, Caldwell Partners International, has a lot to gain from a US recovery. Last year and operating in a weak economy, the Company still managed to report a net profit of $981,000 or about $0.06 per share in earnings and also declared a new quarterly dividend. Caldwell Partners is well-positioned to leverage its US operations with more revenue growth and profits from a stronger US economy and job market. Last blog post: Caldwell Partners International ends year with big earnings.
5. Our Top Ideas stock, which is positioned to have a rebound year in 2013.
Prediction: DDS Wireless International Inc. (TSX: DD - $1.60, +5% yield)
Why: Despite the likelihood of a strong Q4, 2012 was a disappointing year for DDS Wireless International Inc., a global leader in providing application software for multiple vertical markets within the transportation industry. The Company's 2012 financial performance is weaker due to foreign exchange losses, the slowdown in European market and delays in new product offerings and deliveries. The good news is that Company still sustained its financial strength to declare a new quarterly dividend for shareholders in 2012. Recent order announcements indicate that 2013 could be a much better year for DDS Wireless, leading to a rebound in financial performance. Last blog post: Does Constellation Software make a bid to buy DDS Wireless? Just maybe.
6. Our Top Ideas stock, which could be acquired in 2013.
Prediction: Radiant Communications Corp. (TSXV: RCN - $0.75)
Why: In September 2012 when we added Radiant Communications Corp. to our list of Top Ideas, we stated the undeniable value of this Company's stock. Even though the stock price is up 47% since, the Company's shares still remain undervalued. With annual sales of $32 million, Radiant Communications, an Information Technology (IT) infrastructure provider, has a well-established national service footprint in Canada which makes the Company attractive to a foreign buyer. If not acquired, a going-private transaction proposal for Radiant Communications could also surface in 2013, which should uncork a higher stock valuation that this Company deserves. Last blog post: Small cap Radiant Communications is growing big on cash.
7. Our Top Ideas stock, which could grow with an acquisition in 2013.
Prediction: Titan Logix Corp. (TSXV: TLA - $0.60)
Why: Titan Logix Corp. had great year in fiscal 2012. The Company's sales rose by 61% and earnings grew to $0.15 per share. Titan Logix, a manufacturer of advanced technology fluid management solutions (particularly for use in mobile tanker applications), has over $5 million in cash and no debt on its balance sheet. Company Management has stated their objective for 2013 is to pursue a profitable and strategic acquisitions to broaden its product offering and markets served. Last blog post: Titan Logix is big on profits.
Author's ownership disclosure:
TSXV: WAN – Yes
TSX: RC – Yes
TSXV: QST – Yes
TSX: CWL – Yes
TSX: DD – Yes
TSXV: RCN – Yes
TSXV: TLA – Yes
This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock.
Investorfile.com is not engaged in an investor relations agreement with Wanted Technologies Corp., RDM Corporation, Questor Technology Inc., Caldwell Partners International Inc., DDS Wireless International Inc., Radiant Communications Corp. and Titan Logix Corp. nor has it received any compensation from Wanted Technologies Corp., RDM Corporation, Questor Technology Inc., Caldwell Partners International Inc., DDS Wireless International Inc., Radiant Communications Corp. and Titan Logix Corp. for the preparation or distribution of this article.
The author of this article has acquired and may trade shares of Wanted Technologies Corp., RDM Corporation, Questor Technology Inc., Caldwell Partners International Inc., DDS Wireless International Inc., Radiant Communications Corp. and Titan Logix Corp. through open market transactions and for investment purposes only.