Average of high-point return for all
of Investorfile’s 27 Top Ideas to date is 384%.
was a difficult year to produce positive investment results as a small and
microcap stock picker for non-resource sectors, 2023 actually ranked as the worst
year of all, since the Investorfile blog commenced publication of its very
first small cap value stock pick back in December of 2011.
While we feel our
stock picking methodology remains sound, given the financial stability for the
majority of our Top Ideas, unfortunately, very low valuations and little
liquidity were the dominant trends again for small and microcap stocks in 2023,
thus leading to the significant stock price erosion year over year.
As mentioned before,
we are bottom-up small cap stock pickers’ blog, therefore Investorfile is not
about to predict the direction of the market for the upcoming year (we are of
the view that no one can predict the market’s direction consistently anyway). That
said, Investorfile is of the belief that the ultra-low valuations for small and
micro-cap stocks have bottomed. The question is, how quick will the recovery be
in 2024 to get back to more normalized valuations?
Despite the negative
market sentiment for small cap stocks, two of Investorfile’s Top Ideas still set
new high-point return marks in 2023: AirIQ (TSXV: IQ) and iFabric (TSX:IFA).
Investorfile has documented 27 picks that, to date,
comprise our list of Top Ideas – Small Cap Value stocks. This summarizes the
performances of our Top Ideas since inception. Note that high-point returns are
based on the highest closing stock price and exclude investment return benefits
from dividends, with the exception of final return calculations due to
takeovers. Dividends and return of capital distributions are deducted from
share price cost-base for the calculation of final returns.
Average high-point returns based on highest closing
stock price equals 384%
To date, 11 takeovers/privatizations at a premium-to-stock price
Paid out a combined total of $3.25 per share of dividends/return of capital.
The list of Top Ideas which had positive investment returns
year-over-year in 2023:
Technologies (TSXV: DSY) +123%
Gatekeeper Systems (TSXV: GSI) +104%
AirIQ (TSXV: IQ) +60%
Noble Iron (TSXV: NIR.H) +60%
iFabric (TSX: IFA) +44%
All-time top 5 rankings of Top Ideas for
high-point returns as December 31, 2023:
Technologies Corp., TSX: STC, +2377%
Questor Technology Inc., TSXV: QST, +1374%
Systems Inc. TSXV: GSI, +783%
Information Technologies Inc., TSXV: QIS, +725%
Takeover, +708% (includes dividends)
Author's ownership disclosure: YES: STC, QIS,
QST, GSI, NIR.H, IFA, DSY, IQ
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 Questor Technology Inc., Sangoma Technologies Corp.,
Quorum Information Technologies Inc., Gatekeeper Systems Inc., Noble Iron Inc.,
iFabric Corp., Destiny Media Technologies Inc. and AirIQ Inc. nor has it
received any compensation from Questor Technology Inc., Sangoma Technologies
Corp., Quorum Information Technologies Inc., Gatekeeper Systems Inc., Noble
Iron Inc., iFabric Corp., Destiny Media Technologies Inc. and AirIQ Inc. for
the preparation or distribution of this article.
The author of this article has acquired and may trade shares of Questor
Technology Inc., Sangoma Technologies Corp., Quorum Information Technologies Inc.,
Gatekeeper Systems Inc., Noble Iron Inc., iFabric Corp., Destiny Media
Technologies Inc. and AirIQ Inc. through open market transactions and for
investment purposes only.