Moderated by Paul Andreola
Paul Andreola (diddly squatz)
Paul Andreola – I am a full time stock market investor. My focus has always been small cap and micro cap companies. When Gary asked me to join him in this endeavor I immediately said yes. I can’t think of a better person to be doing this with.
I have been investing in the stock markets for over 25 years and have a wide breadth of related experience including over 15 years in investor relations, management, marketing, and communications. I was also a licensed investment advisor for over 10 years specializing in small and micro cap equities. I’ve helped raise capital for early stage private and public companies and have been directly involved in the management and financing of several start-up technology companies. In 1998, I co-founded MDU Communications Inc. (MDTV), a provider of premium telecommunications services such as digital satellite television, high-speed broadband internet and in-suite monitored security services to the North American multi-dwelling unit marketplace. I also helped co-found Destiny Media Technologies Inc. (DSNY), a leader in the development of easy-to-use tools for distributing digital media through the internet. I have helped take companies public and I have been a director of several public and private companies. All this experience, I believe, helps me to understand the intricacies of the public markets and smaller companies.
I was born, raised and live in Canada. I hope to be able to bring a ground level view of the Canadian markets as well as my considerable network of local contacts. I have a stock selection strategy that has worked very well for me over the years and I hope to use it to be able to highlight companies that I think warrant considerable attention. My experience has confirmed my belief that the Canadian micro-cap market is grossly under followed and therefore offers tremendous opportunities for those who are willing to dig deeper for the necessary information required to make solid investment returns. It is my goal to bring these opportunities to the attention of this thread and all its participants.
What is the Prime Directive of this thread?
Make money for thread participants. That drives both Paul and I. We want to present Canadian companies we feel have potential to the attention of investors for the primary purpose of capital gains. There may be a secondary benefit in holding Canadian stocks depending on what happens with the dollar vs. the Looney. Over the past 6 months the Looney has been improving vs. the US dollar. As of 8-14 1.00 US dollar equaled $1.04 vs. the Canadian Looney. This is not meant to be a motivating factor for buying Canadian stocks for our purposes here but the moderators do expect the Canadian economy to be stronger vs. the US economy both in the short and long term going out the next 5 years. That is why we are here. That is what we believe will be the case going forward. This will be addressed further below.
What are the parameters on this thread relative to what kind of stocks may be discussed and the suggested profile of said stocks?
The fundamental aspects of stocks discussed here will cover all sectors including Canadian mining and resource stocks. We are covering these due to the great number of possibilities on the TSX and TSX.V coupled with the ‘great chase’ that began a few years ago for literally all resources of all kinds and types under ground or water spurred by the unquenchable thirst of Chinese companies and their Government—and now others-- to secure these resources. Coal, oil, potash, natural gas, precious metals and Rare Earth Elements, commodities of various kinds, it goes on and on…and some of commodities or elements already are being depleted rapidly. This will be a fundamental addition in focus vs. the Microcap Kitchen. We also invite participants to post on stocks in the biotech industry, technology companies of all kinds and types, widget companies….just about anything that can be monetized into a market cap and is listed on any exchange. The subject company can be domiciled anywhere as long as their primary headquarters are in Canada. There are a number of Canadian stocks domiciled in Delaware, Nevada, Utah etc. Because mining companies will be involved we are suggesting the capital structure of a company reflect under 150m shares for mining companies and 100m shares for all other sectors. Suggested price limits are $.05 low and $5.00 high. And to help all who are going to participate on the thread in any manner we ask that you start your post with the company’s Canadian symbol (including the pink sheet symbol-more on that below), exchange (either TSX or TSX.V or US) and Canadian price. We would also ask for the benefit of all that you include at least a brief description of the company and its share count and why you like it and why we should buy it. Share count is important here and we ask that participants be vigilant relative to same. Also helpful would be the 52w high and low.
What are the conventions of this thread?
This is very simple but also very affective. We follow the Golden Rule here…treat others as you would like to be treated in all manners and respects. One of the reasons the Microcap Kitchen has remained one of the most popular boards in all areas, sectors and niches on Silicon Investor for the past many years is that civility, courtesy and tolerance have been hallmarks of that thread through the years in addition to its roster of stellar stock selectors. Any disruption of reasonable harmony has usually been handled by the parties themselves. We are a moderated board here so if a member just will not listen to reason we have the ability of de-activating any further participation from that member. In all its many years the Kitchen has removed only 15 people and the Kitchen has one of the highest subject marks on all of SI. We hope to duplicate at least the tenor here and the audience will decide the rest.
Why Canadian stocks and why now?
Paul and I are convinced that the direction of the respective economies in the USA and Canada are going to differ markedly in the next 3-6-9 months and the next 5 years. This conclusion is based on a great deal of research regarding the probable directions of both economies. The major difference between the two economies can be summed up very briefly by stating that the Canadian monetary authorities side-stepped many of the potholes the US administration/legislatures drove right into during the 2008 crash (the roads and highways in the USA are still littered with the vehicles --read policies--piled up as a result of those potholes) and they have steered their economy since the 2008 catastrophe in vastly different directions than the US….with singular success in a number of key sectors as compared to the progress of the USA post the 2008 meltdown. We invite you to look over some of the articles below which address this conclusion and the reasons why we think Canadian stocks will outperform going forward. We also want to note here that the activity on Canadian stocks in the Kitchen has been picking up of late at a rapid rate. We think the timing is right on the money here folks to introduce this subject-here are some articles to prove the point--->
A Run for the Canadian Border
Foreign investors eye Canada as haven
Canada's economy can teach the U.S. a thing or two
Need A Job? Try Canada, Where Hiring Is Booming And Home Prices Are Rising
Foreign investors feel the love for Canada
How do I as an investor buy in the Canadian markets, either the Toronto exchange or the Toronto-Venture exchange?
First we would like to note here that some of the companies we are after trade on the OTC BB. NEIK and TSTA are two examples of Canadian companies, wherever domiciled, that have their corporate headquarters in Canada and are listed on the OTC BB here. Of course we will include companies so designated.
For those investors who are not experienced or for that matter not comfortable buying Canadian stocks the following information may be helpful.
-just as we have Edgar here to follow the SEC filings of the US companies that interest us Canada has SEDAR.com, a mirror service that contains basically the same information, and in some cases even more information, than Edgar. Go here and look around. The site is pretty much self explanatory:
-Canadian stocks will have an extension indicating their exchange—either .T for the Toronto or .V for the Toronto-Venture. If a company’s symbol is not readily apparent just look it up by name either at Yahoo, MarketWatch, or the site I prefer and use extensively for Canadian stocks, Stockhouse.com. Also at Stockhouse and some other sites you will get a Canadian bid and offer, just as on US stocks. You can go to any currency site, insert the Canadian price, and get the corresponding US price based on the Looney vs dollar exchange rate—I use the following site for this purpose.
To buy from your broker using the web, which should give you a better commission rate, simply find the corresponding pink sheet symbol for the Canadian stock. This will allow you to enter and execute a trade in US currency and should enable you to get your customary commission rate. About 90% of Canadian stocks have a mirror pink sheet listing. To find it enter the name of the company at Yahoo, MarketWatch or Stockhouse symbol look up, which is what I use. Entering the name will give you the pink sheet symbol you need to place a trade and you already know how to find the US price in pennies/dollars. Simply insert the pink sheet symbol, set your price at the US offer or play in btw....and buy or sell. I have been doing it for years. There will be some cases, not many, where a pink is not available. Paul and I will advise accordingly if that is the case. As a last resort I call TD Ameritrade to find out if they have a pink symbol that I cannot locate and that has sometimes worked. If it turns out you have to call your broker to make the trade (be certain to inquire about the cost ref commission for the trade as you will have to pay it in and out) you have to decide the relative worth of same. We are actually talking about just a few pennies where the goal of the trade would be measured in many dollars and the commission rate, although you may not like the number, is in fact immaterial compared to what we are after in that play. Here are some Canadian stock sites you will find helpful for information:
We are aware that most microcap investors have been watching the prices on their stocks erode over the past 6 months or so. The microcap rally that led the stock market back (it’s usually the case that microcaps lead the way out of the hole and that was some hole) began to lose steam in March and after moving up about 80% from their crash lows are presently in the doldrums along with the rest of equities.
Things that worked before are not working as well now, moves that would last days are lasting for hours, and in too many cases there are no bids when you go to sell.
That’s here in the USA. It’s better north of the border. We have been working for a number of weeks getting ready to begin this endeavor and for weeks now we have been looking at Canadian companies, and we are convinced you can make money investing and trading the Canadian markets based on the companies that are in our universe. And the way information is available now on the internet you can make use of all the tools and techniques you use now for the American exchanges….no singular differences.
We invite investors to post on their Canadian plays and join us as we discuss companies already below from the Kitchen and introduce companies that we think have potential for profits. After it’s all said and done, after we get a stable of companies going and folks become comfortable both here and investing in Canadian companies it will still all come down to one primary purpose-buy low and sell high. That’s what we want for everyone and that is why we are here. So let’s get started.
Disclaimer-We have been looking around and some of the disclaimers we find out here can take up 2 pages. We don’t think all of that is necessary here. Beyond the obvious points that apply to this board….that we are all responsible for our own investment decisions, that all participants who post or just read other’s posts are expected to do their own research on any stocks discussed here, that all material appearing on this board cannot be deemed to be accurate and it is up to each participant to verify same, that all participants who post on stocks are not obliged to state their buys or sells etc… etc…we think overall that Coz’s disclaimer for the Kitchen seems to have worked very well for the last 10 years plus or minus so we are just going to put it here to wrap this up:
It should be understood that ALL posts on this thread are the opinions of the persons who post here. They should be taken in that light. There are no guarantees in the world and that seems especially true in the stock market.
Situations change with new information. The market itself is often unpredictable. Each individual does the best he can with the available data, but no one can be correct all of the time. If you have any doubts about that, study the calls of Wall Street's professional stock analysts and fund managers.
If you choose to invest in a security that is mentioned on this thread, it is your obligation to thoroughly research that security and make a personal decision to buy or pass based on your investigation alone. The posters on this thread are only sharing their opinions and are in no way suggesting that you make any investment decision based on what is posted here.
It's your money. Don't be foolish. Do your own research before you make an investment decision.