Investorfile Blog

Category
Investorfile.com (49)
Ergoresearch Ltd. TSXV: ERG (1)
Posera Ltd. TSX: PAY (2)
Gatekeeper Systems Inc. TSXV: GSI (1)
AirIQ TSXV: IQ (3)
Intouch Insight Ltd.TSXV: INX (2)
Intrinsyc Technologies Corp. TSX: ITC (7)
Quorum Info. Tech. Inc. TSXV: QIS (6)
Sangoma Technologies Corp. TSXV: STC (8)
Avante Logixx Inc. TSXV: XX (6)
The Caldwell Partners Int. Inc. TSX: CWL (8)
Questor Technology TSXV: QST (8)
Titan Logix Corp. TSXV: TLA (8)
RDM Corporation TSX: RC (12)
IWG Technologies TSXV: IWG (4)
WANTED Technologies (7)
DDS Wireless International Inc. (6)
Radiant Communications (4)
Galvanic Applied Sciences Inc. (3)
Archives
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
Jan
29
Another takeover for an Investorfile stock pick
Posted by: Gerry Wimmer
1/29/2017
|

Investorfile Top Ideas subject to takeovers have averaged 164% in total returns. IWG Technologies becomes the fifth company takeover to date. Are there more takeovers to come for our small cap value stocks?

Investing in undervalued small cap companies that are fundamentally strong can be very rewarding. But, more often than not, a shareholder value–enhancing event like takeover of small cap company can generate a significant premium to its stock price and, just as important, instant liquidity for this investment.

Last week, one of Investorfile’s Top Ideas – IWG Technologies Inc. -- was privatized in a takeover. Public shareholders of IWG Technologies received C$0.43 per share, which equates to total investment return of 95% since our first blog post on the Company in 2015 (See: IWG Technologies is soaring in small cap value.)

Of our 17 Top Ideas profiled to date in the Investorfile blog, five stocks are no longer publicly listed on a stock exchange as a result of a takeover or privatization. The average total investment return on our Top Ideas that were subject to a takeover or privatization is about 164% to date.

Takeover or privatizations and total investment gains for Investorfile Top Ideas:

Wanted Technologies Corp. (2015) +478%
Radiant Communications Corp. (2013) +180%
IWG Technologies Inc. (2017) +95%
DDS Wireless International Inc. (2014) +48%
Galvanic Applied Sciences Inc. (2013) +17%

It is our opinion that any one of the small cap value stocks on Investorfile's Top Ideas list could be subject to a takeover bid, as these companies continue to grow their revenue bases. If we had to "guess” which could be the next five Top Ideas to be taken-over, we would select the following stocks:

Quorum Information Technologies Inc. (TSXV: QIS)
Sangoma Technologies Corp.
(TSXV: STC)
Titan Logix (TSXV: TLA)
Avante Logixx Inc. (TSXV: XX)
Caldwell Partners International Inc. (TSX: CWL)

As always, a shareholder value–enhancing event like a takeover is never factored in to our share price targets. That said, future takeovers may be very rewarding for shareholders who have investments in our Top Ideas.

Author Ownership Disclosure:
Yes: TSXV: QIS, STC, TLA, XX
Yes: TSX: CWL


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 is not engaged in an investor relations agreement with Caldwell Partners International Inc., Avante Logixx Inc., Titan Logix Corp., Sangoma Technologies Corp., and Quorum Information Technologies Inc. nor has it received any compensation from Caldwell Partners International Inc., Avante Logixx Inc., Titan Logix Corp., Sangoma Technologies Corp., and Quorum Information Technologies Inc. for the preparation or distribution of this article.

The author of this article has acquired and may trade shares Caldwell Partners International Inc., Avante Logixx Inc., Titan Logix Corp., Sangoma Technologies Corp., and Quorum Information Technologies Inc. through open market transactions and for investment purposes only
|

ENTER YOUR COMMENT:

Name:
E-mail: (will not be published)
Comment: (500 Char. Max)
Verification Code
Code Image - Please contact webmaster if you have problems seeing this image code If you can't read the word, click here to load a new word
Enter the Word exactly as it is shown in the box above:

FREE. Sign up for blog post alerts

Latest Tweets

Latest Blog Comments

Gerry: Thanks for small cap stock suggestions over the past 5-years. Your record is very impressive and your analysis has been excellent over the years. I think small investors (and fund managers) should pay much more attention to your work. I look forward reading your blog over the next 5-years!