Q: Good day, are there any microcaps, both on the US side and in Canada, that you find particularly interesting at the moment? If so, why?
Regards
Regards
5i Research Answer:
Investors need to be aware of the risks when investing in micro-caps, including 1) meaningful illiquidity, some are trading on the OTC market (hard to get out if investors are wrong about the investments). 2) sometimes, the disclosures are not as strong as that of larger companies and 3) generally not covered by analysts. That being said, the space also offers some interesting opportunities as this is also the most overlooked part of the market. We think these companies could look interesting given the momentum in their fundamentals:
US: RSSS, BUKS, MCEM
Canada: HME, NCI