Q: Down almost 45% on this one in my TFSA.Just hit 52wk low. Worth holding or move on?
5i Research Answer:
The company has a bit of cash, decent revenue, and is profitable. Cash flow is also positive. Valuation is very cheap. In nearly all cases, with companies so small ($29M), we would say move on. It is hard for microcaps to attract attention when the market is so volatile. But in this case we think the decline is too much and we would be OK holding longer. The last quarter was a record, and it has a strong backlog of orders. Business has not dropped as much as the stock price. Keep in mind that any microcap has extreme risks overall, but this one looks better than most to us at current levels.