Future 60 MicroCaps – Update
/// Top 10 Winners +55% Since Inception (July 10, 2018) ///
Let's check in on the Future 60 MicroCaps that I wrote about in the Summer of 2018; "Small Companies; Big Dreams". It was a fun newsletter (and one of the most popular, breaking through the top 5 most-viewed issues of all time).
Some stats, since inception (July 10, 2018):
Future 60 MicroCaps: -8.4%
- Top 10 Winners: +55.5%
- "Highest Growth" (1/3): +5.2%
- Takeovers (3): + 61.6%
S&P/TSX Venture Index: -17%
S&P/TSX Composite Index: -5.5%
Shortly after writing "Small Companies; Big Dreams", markets around the world started to correct, and so -8.4% since inception (Future 60 MicroCaps) doesn't concern me. These are very small companies (< $100M market cap), and mostly listed on the TSX Venture, which was down -17% over the same period (July 10th - Feb 12th). What excites me is the growth potential in some of these small companies. In the original issue, I segmented 1/3 of the Future 60 into a "Highest Proven Growth" sub-list, because those 21 out of 60 stocks had all achieved the following hurdles:
- >= 0% Latest Quarter YoY Revenue Growth (Average = 26%)
- >= 0% Latest Annual YoY Revenue Growth (Average = 39%)
- >= 0% Last 5-Year Revenue CAGR (Average = 21%)
- >= 0% Cash Flow Yield (Average = 8.6%)
Here's how those "Highest Proven Growth" stocks have done since July 10, 2018:
|Caldwell Partners International
|Cortex Business Solutions*
|Swiss Water Decaffeinated Coffee
|Diamond Estates Wine & Spirits
The above "Highest Proven Growth" sub-list of Future 60 MicroCaps gained +5.2% (v.s. -17% for the S&P/TSX Venture Composite Index), and contained all of the companies (3) from the Future 60 list that were taken-over(*) since July 10, 2018: Bevo Agro (+163.5%), Cortex Business Solutions (+12.3%), and Symbility Solutions (+8.9%). Naturally, I expect more of these MicroCap stocks to be taken over. Note: I wrote about Bevo Agro (BVO) for the first time in an earlier issue (Aug, 2017), and since then it's gained +345%.
There were some surprises in the Top 10 Winners (+55.5%), which I recently posted on Patreon, along with the complete spreadsheet of Future 60 MicroCaps that you can check out, and follow as the list evolves. There's 85+ members now, and more goodies, including new audio interviews with Jason Donville, and Francois Rochon (more coming soon...), My Top 15 Best Ideas for 2019 (+14.6% YTD), and more.
Regards, and Happy Investing,
(If you want to chat, email me at firstname.lastname@example.org)
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Robin Speziale is the National Bestselling Author of Market Masters. He lives in Toronto, Canada. Get a copy of his latest book, Capital Compounders.
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Disclaimer: Robin Speziale is not a registered advisor. This newsletter does not contain financial advice or stock recommendations. Please conduct your own research and consult a professional.