(Image credit: Pixabay)
Summary
- The TSXV index has gained 23.67 per cent this year, higher than the TSX index that declined by 2.61 per cent in the same period.
- Rally in the junior Canadian market is being led by companies like Facedrive, BQE Water, PyroGenesis Canada, Metalla Royalty & Streaming and GreenPower Motor Company.
- All the five are from diverse industries: Facedrive is a tech firm, BQE is a wastewater management company, PyroGenesis from industrials sector, Metalla from basic materials, and GreenPower from electronic-vehicle segment.
The Toronto Stock Exchange Venture (TSXV) has been the breeding ground for small cap and early-stage companies for a long time. Despite being struck in a pandemic market, the key index of the TSXV has yielded 23.67 per cent returns this year – way better than elder sister TSX index, which declined by 2.61 per cent in the same timeframe. Some of the small cap players that has led this rally in the junior Canadian market include Facedrive, BQE Water, PyroGenesis Canada, Metalla Royalty & Streaming and GreenPower Motor Company.
All the five companies mentioned above have returned at least 2.7 per cent gains over the last 90 days and have outperformed the current market. Without any further delay, let us dive right into the stock performance of the five rising stars on the TSXV:
TSXV Rising Stars
(Source: TSXV)
Facedrive Inc (TSXV: FD)
First on our list is upcoming ridesharing company Facedrive. The company ranks high on the tech companies rolls (across TSX and TXSV) that are outperforming their peers. It is also ranked uno in junior tech companies (micro and small cap) on the TSXV.
Facedrive stocks have surged by an astonishing 761 per cent this year, despite restrictions on movement amid the pandemic. On the monthly and quarterly scales, the company has gained 25 per cent and 26 per cent, respectively.
Since its market debut in June 2018, Facedrive shares have returned a whopping 2500+ per cent.
The ridesharing company’s stock is currently valued at C$ 1.7 billion and has a high price-to-book (P/B) ratio of 395.40.
The company has expanded to various segments such as Facedrive Rideshare (offering green transportation solutions), Facedrive Marketplace (ecommerce platform), Facedrive Foods (delivering food at consumers’ doorsteps) and Facedrive Health (technological solutions to health challenges).
BQE Water Inc (TSXV: BQE)
Stock of water treatment solution firm BQE Water has advance by 83.63 per cent year-to-date. The company offers mine water treatment solutions globally.
In the first quarter of 2020, the company generated revenue of C$ 1.9 million, up from C$ 0.7 million in the same quarter a year ago. Net loss went down from C$ 0.3 million in Q1 2019 to C$ 18,374 in Q1 2020. It has a current market capitalization of C$ 19 million and a price-to-earnings (P/E) ratio of 33.50.
In its investors’ deck, BQE Water estimates its revenue will touch C$ 1 billion in the next two decades.
PyroGenesis Canada Inc. (TSXV: PYR)
PyroGenesis ranks at number two on the list of top performing micro and smallcap industrials companies on the TSXV.
Shares of this plasma product developer have yielded a massive 997.83 per cent returns in 2020 so far. The scrips have advanced by 371 per cent in a quarter. However, the stock prices have gone down by 11 per cent in a month.
PyroGenesis’ current market capitalization is C$ 775 million and has a high P/B ratio of 256.50.
The company posted C$ 2.12 million revenue in the second quarter of 2020, up 133 per cent year-over-year from C$ 0.913.
Metalla Royalty & Streaming Ltd. (TSXV: MTA)
Metalla stocks have surged over 272 per cent since its stock market debut in February 2018.
Riding high on recent TSXV metals rally since March 2020, stocks of Metalla have advanced by 51 per cent this year. It yielded 18 per cent returns in a month. The company ranks high on the list of metals stocks (across TSX and TSXV) and list of top basic materials companies that are outperforming their peers.
Metalla has a current market capitalization of C$397 million. It distributed monthly dividend of C$ 0.004 and has a yield of 0.45 per cent. Its present P/B ratio is 6.416.
The company isn't profitable at the moment and still in growing stage. Investors are expecting more revenue growth in the coming months.
GreenPower Motor Company Inc (TSXV: GPV)
GreenPower is a Canada-based electronic vehicle (EV) making company. The company announced the roll-out of its initial public offering in the US on August 25, which resulted in a 7+ per cent jump in the stock prices within 24 hours.
GreenPower stocks have posted tremendous performance in the pandemic market, yielding over 1000 per cent returns year-to-date. On the quarterly and monthly scales, the scrip advanced by 761 per cent and 217 per cent returns, respectively. And that’s not all. The shares surged by a sweet 147.66 per cent last week.
In short, the GreenPower stocks have been powering through the pandemic market unscathed, and investors have taken note. Its current market valuation is C$ 364 million and has 817.46 per cent return on equity. However, its P/B ratio is negative 336.0.
The company primary develops EV transit buses and school shuttles/buses. With support from government agencies, clean tech companies are slowly gaining prominence on equity markets the world over. The Canadian government too has been focusing on clean and sustainable technology as it gears up to achieve its zero-carbon target by 2050.