Keynote Speech: Canadian MicroCap M&A
In late September, I gave a keynote speech at the Planet MicroCap Showcase / Smallcap Discoveries conference in Vancouver titled ‘‘Canadian MicroCap M&A - What Happened Recently.’’
In addition to my analysis of 24 recent M&A transactions in the Canadian microcap market, I also covered:
The depressed trading and financing data on the TSX Venture exchange
The small-cap underperformance versus large-caps over the last ten years
An overview of the current private equity landscape
The implications of the recent flurry of acquisitions for Canadian microcap investors
Three reasons to be bullish
You can watch the presentation right here:
We are only a month and a half later, and the momentum in Canadian microcaps has accelerated quite significantly.
For example, compare the trading data shown in my slides to the last published data HERE. The trading volume exploded in October, and several stocks have been making new 52-week highs. This is an undeniable sign that institutional capital is flowing back into microcaps.
So far, the beneficiaries have mostly been higher-quality growth companies. Over time, I expect more capital to come down and start flowing to the smaller or more speculative opportunities.
It won’t be a proper bull market until we see more IPO/RTO activity and subpar companies raising capital easily (which isn’t happening at all right now).
I remain very bullish on the asset class.
It feels like there’s a significant amount of upside left over the next twelve to eighteen months (at least)!
Let me know what you think!
Disclaimer
This publication is for informational purposes only. Nothing produced under the Stocks & Stones brand should be construed as investment advice or recommendations. Mathieu Martin, the author, is employed as a Portfolio Manager with Rivemont Investments. This publication only represents Mathieu Martin’s own opinions and not those of Rivemont. Rivemont may own positions and transact on any securities mentioned in this publication at any time without prior notice. Always do your own research and consult a professional before making investment decisions.
If you’d like to invest in small public companies, check out this post.