Q: HTL, TTR, HEO and AFM were mentioned in an article about possible TSX graduates. Knowing they are small caps, could you comment on them and rank them. Are any of them a buy at this time?

AFM has had good stock momentum and the balance sheet looks healthy. The valuation is not the cheapest among miners but 16x earnings is not unreasonable. HEO is a strong player in water treatment, good growth is expected and we think shares are beginning to settle. We would be okay buying but would be cautious on position sizing due to its smaller size. We like HTL for its health care exposure and good growth. The valuation is not cheap at 32x earnings, but we like the niche it is in and it has a good balance sheet. We would consider it a higher risk buy. TTR pays a good dividend, we would consider it good for small cap investors looking for diversification. At 11x earnings, the valuation looks reasonable. We would rank as HEO, HTL, TTR, AFM.

So said 5iResearch. GLTA