perennial annual Top Pick Sangoma Technologies (TSX: STC, NASDAQ: SANG) is
joined by EcoSynthetix (TSX: ECO) as small cap stocks with big upside potential
in the year to come.
Investorfile attempts to foresee a few investment themes for certain small cap stocks
from our list of Top Ideas that may have a positive impact on the share prices
in the year to come. We have built up a track record of being more right than
wrong in generating investment gains from our annual Top Picks. Though we do
not advocate a short-term investing focus for generating investment gains, we
remain confident that our annual Top Picks are stocks that will generate strong
returns and maybe hit new all-time highs from their current trading levels within
the 12-month period moving forward.
Please note that our
annual predictions do not in any way preclude the potential for any of
Investorfile’s Top Ideas to become a top-performing stock in 2022, along with
our Top Picks. Truth be told, we would like to be proven wrong with any
exclusion to our list.
Investorfile Top Pick
predictions for 2022:
Top Pick #1:
EcoSynthetix Inc. (TSX: ECO - C$5.81)
Our Top Ideas stock which should see significant organic revenue growth in 2022
EcoSynthetix is a renewable chemicals company, specializing in
bio-based materials, that allows its customers to provide greener
alternatives for its products by reducing use of harmful materials, such as
formaldehyde and styrene-based chemicals. The Company produces biopolymer products manufactured from naturally derived feedstocks.
The biopolymers that the Company manufactures replace toxic adhesives (glues)
that historically have been used in everything from particle board, often used
in furniture, hair gel and paper-based packaging products.
EcoSynthetix announced receiving purchase orders for continuous monthly volumes
of the Company's bio-based DuraBind resin into 2022 with a top 15 global
manufacturer of wood composite products and a leading international retailer (believed
to be IKEA). We expect that EcoSynthetix will win other contracts for its
bio-based products in 2022, from major personal care brands, paper packaging
and tissue manufacturers that are going "green." This will lead to
significant revenue growth for the Company. We highlight that EcoSynthetix is
debt-free and has over US$40 million in cash.
Investorfile blog post (May 2021)
EcoSynthetix is signaling that big
demand for its green products is nearing
Top Pick #2:
Sangoma Technologies (TSX: STC- C$21.06, NASDAQ: SANG –
Our Top Ideas stock that will see a re-rating of its market valuation in 2022
Corp. is a trusted leader in delivering value-based Communications-as-a-Service
(CaaS) solutions for businesses of all sizes. This communications segment
includes small businesses to large enterprises that are looking for all the
advantages of cloud-based communications at a fair price.
We note Sangoma Technologies appeared on
Investorfile’s annual Top Pick list last year and the stock peaked at C$38.50.
Today the share price is significantly lower, but the stock should rebound
dramatically again in 2022 as Management continues to execute on its business
plan driving growth in recurring revenues The Company recently listed on the
NASDAQ and the stock’s valuation should re-rate higher closer to its US-listed
peer group. Sangoma Technologies now has seven research analysts covering the
stock, all with buy recommendations.
Last Investorfile blog
post (Nov. 2020)
Sangoma Technologies could be a
$5.00 ($35.00) stock in 2021, with 85% upside
Author’s ownership disclosure:
Yes – ECO, STC
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 Sangoma Technologies Corp. and EcoSynthetix Inc. nor has it received
any compensation from Sangoma Technologies Corp. and EcoSynthetix Inc. for the
preparation or distribution of this article.
The author of this article has acquired and may trade shares of Sangoma Technologies
Corp. and EcoSynthetix Inc. through open market transactions and for investment