Q: I currently own a small position in BRM in my TFSA which is down around 25%. I don't usually average down but I might make an exception on this stock given that have good positive numbers and outlook. I own larger positions in other small caps PNG,ZDC, VHI and HBFG all of which have performed well. I know that you don't make actual portfolio recommendations but would you put more into BRM or into one of the others. Thanks for all your help. Steve
5i Research Answer:
BRM's very small size and negative momentum turn us off a bit. At $35M market cap, it is very hard for such small companies to attract investors. It has cash, is profitable, and is cheap on valuation, so it is better than many microcaps. But if exposure is already there, we would prefer PNG today for more $$.