2016 predictions focus on Intrinsyc
Technologies (TSX: ITC), RDM Corporation (TSX: RC) and Quorum Information
Technologies (TSXV: QIS).
The Investorfile blog began making its
annual predictions in December 2012. Each year the blog had selected a few
investment theses (that could occur in the year ahead) and matched them to some
of the Investorfile Top Ideas. While 2015 was not kind to small cap stocks in
general and, hence our predictions from last year, overall we had some success
in forecasting the future even if our timing was off target a bit. That said,
our enthusiasm to make a new set of focused predictions has not waned.
Therefore, here we go again:
1. Our Top Ideas stock which could see strong organic revenue growth occurring in 2016.
Technologies Corp. (TSX: ITC - $0.91)
Why: We expect
that Intrinsyc Technologies’ revenues could really ramp up in 2016 from the
production of large quantities of its computer modules. The Company is a product development company in the high technology space
and shares in the success of its customers, whose
high-tech products make the transition from development to commercialization.
The Company has publicly filed a report stating that revenues could rise
materially in 2016. Recent news releases of computer module orders also
indicate that revenues for Intrinsyc should be on the rise. Last blog post: Intrinsyc Technologies results
and outlook show more than a promise
We note that two other Investorfile Top
Ideas should deliver strong year-over-year revenue growth over the next 12-months too, driven by acquisitions. They include: Avante Logixx Inc.
(TSXV: XX), last blog post: Avante Logixx's acquisition
strategy shows signs of early success; Sangoma Technologies
Corp. (TSXV: STC), last blog post: Sangoma Technologies' value
becomes stronger with recent acquisitions.
2. Our Top Ideas stock, which could have a
multiple of shareholder value-enhancing events occurring in 2016.
PREDICTION: RDM Corporation
(TSX: RC - $3.90)
Why: RDM Corporation is a payment processing
services company that generates a significant amount of cash from its
operation. Already a payer of dividends to shareholders, we believe that the
Company’s current business can support a higher dividend payout. We predicate
that RDM will increase its dividend rate in 2016, which enhances the value of
this stock for its shareholders. The Company is also cash rich (US $26.4
million) and positioned to make a major acquisition in 2016, another
shareholder-enhancing event. RDM Corporation could also be subject to a
takeover bid too. Last blog post: RDM investment returns top
400% and plenty more to come.
3. Our Top Ideas stock that could get
discovered by the broader investment community in 2016.
PREDICTION: Quorum Information Technologies Inc.
(TSXV: QIS - $0.42).
Why: Quorum Information Technologies is a
Software-as-a-Service (SaaS) company serving the auto dealership market in North America. Many investment pundits are predicating
that small cap SaaS stocks as a group will perform well in 2016. Quorum
Information Technologies is already profitable with a growing recurring revenue
base. The Company recently raised some additional equity to expand its
operations more quickly, which should attract attention from the investment
community and have a positive impact on the stock price. Of note: A US
hedge fund has accumulated about 18% of the Company’s stock. Last blog post: Quorum Information
Technologies stock price could double again.
Author’s ownership disclosure:
TSX: ITC - Yes
TSX: RC - Yes
TSXV: QIS - Yes
TSXV: XX – Yes
TSXV: STC - 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 is not engaged in an investor relations
agreement with Intrinsyc Technologies Corp., RDM Corporation, Avante Logixx Inc., Quorum Information Technologies
Inc., and Sangoma Technologies Corp.
nor has it received any compensation from Intrinsyc Technologies Corp., RDM
Corporation, Avante Logixx Inc., Quorum Information Technologies Inc., and Sangoma Technologies Corp. for the preparation or
distribution of this article.
The author of this article has acquired and may trade shares of Intrinsyc
Technologies Corp., RDM Corporation, Avante Logixx Inc., Quorum Information Technologies Inc., and Sangoma Technologies Corp. through open
market transactions and for investment purposes only.