Trisura Group Ltd T.TSU

Good Potential

[retiredcf]

What small to mid cap companies can you recommend that have been beaten up due to market conditions but have a high chance of success long term? 

Small to mid-cap companies that we feel have the potential for strong long-term returns and have been unduly sold off this year are: SIS, ATZ, BYD, TCS, TSU, GSY, EQB, FSV, TIXT, and DOO.

With small to mid-cap companies, the risks are almost always more significant than that of large-cap companies, but this is part of the risk/reward framework. Although, small and mid-cap companies have been sold off heavily over the past year as part of a risk-off environment, and coming out of recessions/corrections, small and mid-cap companies tend to lead large-caps. In addition, we feel that we are nearing a place of maximum fear in the markets alongside an inflection point in the inflation story and restrictive monetary policy story. These conditions have the ability to lead to significant recoveries, but they come with significant risks as well. We would be fine with these names as part of long-term holdings and feel that the long-term risk/reward opportunities are tilted in investors' favor. (5iResearch)