New predictions
spotlight: Avante Logixx (TSXV: XX), Caldwell Partners (TSX: CWL) and DDS
Wireless (TSX: DD).
At this time last year,
the Investorfile blog posted its view for the future (See: Investorfile has a
view for 2013.) In that blog post we made several focused predictions for our
list of Top Ideas. So far, we have succeeded on 3 of our small cap predictions
in 2013:
1. Our Top Ideas stock,
which could double in value in 2013.
Past prediction: WANTED
Technologies Corp. (TSXV: WAN - $1.28)
Our prediction that
WANTED Technologies stock would double in value did occur; in fact, the stock
price has almost quadrupled in value during 2013. No surprise, the growth in the
recurring revenue base generated from subscriptions for Wanted Analytics,
online analytical tools used by Corporate Human Resource (HR) professionals,
has generated consistently strong financial results for the Company throughout
2013. Last blog post: WANTED Technologies' financial results are predictably
strong and the stock is still inexpensive. 2. Our Top Ideas stock,
which could have a breakout year in 2013.
Past prediction: Questor Technology Inc. (TSXV: QST - $1.69)
In many ways, Questor
Technology Inc. has had that breakout year in 2013. Year-to-date revenues are
up 54% and profits have climbed 150%. The demand for the Company's proprietary
clean air incinerator technology has ballooned due to the new Environmental
Protection Agency (EPA) air quality requirements in the USA. But most
importantly for small cap investors, Questor's stock price had a breakout year
too, up over 300% to date. Last blog post: Questor Technology clean-air
solutions are good for the environment and shareholders.
3. Our Top Ideas stock,
which could be acquired in 2013.
Past prediction: Radiant Communications Corp. (no longer publicly traded)
Right we were. Radiant
Communications, an Information Technology (IT) infrastructure provider, was
acquired in 2013 in a going-private transaction for $1.43 per share. This share
acquisition price was a big gain for small cap investors in this Company. Last
blog post: Justice served (and big gain) for minority shareholders of Radiant
Communications.
Three Investorfile
predictions happened as expected in 2013. For 2014, we forecast three more:
1. Our Top Ideas stock,
which could double in value in 2014.
New prediction: Avante
Logixx Inc. (TSXV: XX - $0.27)
Why: Over the past
three years, management at Avante Logixx has undertaken a number of initiatives
to enhance profitability. Today, the Company's gross profit, EBITDA and net
income margins continue to expand. But Avante Logixx's operations are scaling
up too with revenue growth occurring across all its security business lines,
including the Company's recurring monitoring income. As Avante Logixx continues
to grow so will its investor audience. Last blog post: Avante Logixx is cashing
in on growth.
2. Our Top Idea stock
whose financial results could see a big turnaround in 2014.
New prediction: Caldwell Partners International Inc. (TSX: CWL - $0.88)
Why: Caldwell
Partners International, an executive search firm with 70% of revenues derived
from US, was positioned well for the US recovery in 2013. But the US recovery in
the job market did not pick up momentum until the second half of this year;
therefore, Caldwell Partners reported little revenue growth in fiscal 2013. But
with the recent data trend of a stronger US job market, Caldwell Partners'
executive search business is on the upswing and should realize a big turnaround
in revenue growth and profits for fiscal 2014. Last blog post: For Caldwell
Partners International: 2014 could be a breakout year for profits and stock
price.
3. Our Top Ideas stock,
which could grow from acquisitions in 2014
New prediction: DDS
Wireless International Inc. (TSX: DD -$1.83)
Why: DDS Wireless
International, a provider of wireless data solutions for fleet management, has
already signed two non-binding letters of intent for acquisitions to merge into
the Company's existing business units. DDS Wireless has the financial
flexibility to make acquisitions with significant cash holdings and no debt.
Last blog post: DDS Wireless is set for a rebound year.
The Investorfile blog will also carry forward one prediction from 2013 to 2014:
1. Our Top Ideas stock,
which could have a shareholder-value enhancing event in 2014.
Prediction: RDM
Corporation (TSX: RC - $1.83)
Why: RDM Corporation, a
payment processing services company, has generated a significant amount of cash
from its operation over the past several years. The Company holds over US $20
million (US $0.95/share) in cash and has no debt. This makes RDM for this
coming year, again, a perfect candidate to carry out a shareholder
value-enhancing event in 2014; a special or quarterly dividend and/or acquisitions.
Last blog post: Once a turnaround; now a growth story: More investors should
tune into RDM Corporation.
Author’s ownership disclosure:
TSX: DD - Yes
TSX: RC - Yes
TSX: CWL - Yes
TSXV: XX - Yes
TSXV: QST - Yes
TSXV: WAN -Yes
Read Disclaimer: 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 not engaged in an investor relations
agreement with Wanted Technologies Corp., RDM Corporation, Questor Technology
Inc., Caldwell Partners International Inc., DDS Wireless International Inc., Avante Logixx Inc. nor has it received any compensation from Wanted Technologies Corp.,
RDM Corporation, Questor Technology Inc., Caldwell Partners International Inc.,
DDS Wireless International Inc., and Avante Logixx Inc.
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., and Avante Logixx Inc. through
open market transactions and for investment purposes only. |