Cash is King: Seven Intriguing TSXV Companies’ Balance Sheets - Eiffel Peak Capital Releases New Stock Watch List
Calgary, Alberta (FSCwire) - Today, Eiffel Peak Capital released its second micro-cap watch list, a new addition to its January 2017 “Public Micro-Cap Dividends” watch list. Seven intriguing TSXV companies made it to the watch list after examining the balance sheets of 1,424 TSXV companies.
“We know there are tremendous inefficiencies in the micro-cap stock market. Lack of research coverage has resulted in many missed opportunities globally. Olympia Financial Group from our last watch list is a great example. As a research-focused firm, the analysts at Eiffel Peak are fascinated with these opportunities and want to share our findings with like-minded retail and institutional investors,” said Qian Zhang, President of Eiffel Peak Capital.
William McNarland, CFA, Managing Director and Lead Analyst at Eiffel Peak Capital, explains how the initial study was commissioned. “We started by screening for companies that have higher current assets than their market capitalization. Out of the 1,424 TSXV companies, we were surprised that over 100 companies fit this description. After a round of eliminating companies that had significant current or long-term liabilities and another round of future expected earning losses, we eventually came up with a list of the seven most undervalued companies on the TSXV. For one company, for example, after we subtracted all of its debts, not only had it more cash than its market cap, but it also had a positive net income! We definitely proved again that there are amazing opportunities that can be found within micro-cap stocks and in this instance, in Canada specifically.”
Eiffel Peak Capital plans to approach these seven companies for a deeper due diligence process to understand the quality of their balance sheets. The due diligence and report coverage is a not-for-profit effort and only travel expenses for office visits are reimbursed. Eiffel Peak will only release the results to the public upon securing liability coverage from the studied company.
The new watch list can be viewed at the following link on Eiffel Peak’s website: https://eiffelpeak.com/en/research/research-reports/
About Eiffel Peak Capital: Eiffel Peak Capital Inc. is a Calgary-based Canadian boutique Merchant Bank. The company specializes in due diligence and execution of private debt and equity transactions between $10 million to $50 million USD globally.
For more information contact:
Qian Zhang, President
info@eiffelpeak.com