A mention in the Globe & MailFrom today's Globe "Number Cruncher" column:
Small-cap stocks have generally been hit harder than large-caps in the current market volatility. The S&P/TSX SmallCap Index is down 30.6 per cent year-to-date, while the S&P/TSX Composite has lost 15.8 per cent over the same period.
Companies with lower capitalizations are more likely than the large-caps to have liquidity issues in dealing with the COVID-19 fallout. That said, it is incorrect to conclude every small-cap is in danger. Today, we look for Canadian small-caps with a focus on companies that have a strong balance sheet, a healthy return on capital and an attractive track record. Please note all financial ratios are reported at the end of the previous quarter and do not reflect the impact of COVID-19.
Home medical equipment supplier Viemed Healthcare Inc. has good overall scores and systematically generated return on capital above its cost of capital. The company, which provides post-acute respiratory care services, said recently it is working with health agencies in helping to transition patients with chronic respiratory failure out of hospital quicker in order to free up beds for COVID-19 patients.
FYI, the other five stocks included in the article are: Senvest Capital SEC-T, Information Services ISV-T, Tecsys TCS-T, Magellan Aerospace MAL-T, Absolute Software ABT-T.