TSX Venture Investing

How to Find Great Stocks on the TSX Venture

Many people blame the TSX Venture’s 4-year collapse on falling commodity prices. In part, that has certainly played a role, but it’s not the sole contributor. You see, for an entire exchange to lose approximately 70% of its value during a 4-year period there must be more to the story than gold dropping 40% or oil 50%. And I have an idea what that might be…

There is a crisis of confidence in many management teams that are leading exploration companies on the Venture. And for good reason…

Many of these management teams have no track record of getting deals done (mergers, acquisitions, buyouts, advancing assets to production), particularly in tough times. In light of that, what do retail investors have to get excited about with these types of companies?

While some of these companies with mediocre management were able to raise millions of dollars during the boom times, investors are well aware those days aren’t coming back anytime soon.

Management teams without extensive – and often international – connections, and a track record of success, don’t have the ability to raise capital in this market to keep investors excited about their story. It’s little surprise that there are rumored to be around 500 companies on the TSX Venture with less than 100K in their treasuries

As you know, financing capital leads to news, and positive news leads to share price appreciation. Without that hope of development, retail investors have little reason to speculate, resulting in a slow and painful death for many resource companies now in their 2nd or 3rd year on life support.

Doom and gloom aside, let me jump into the purpose of this blog entry: Opportunity. Given how beaten down the commodity space is, there are a ton of companies, with stout management teams, trading for pennies now.

Given all the bad management teams who lack the experience to get through this historic bearish period, how does one go about finding the ‘stout’ management teams?

This was the motivation behind our new Ebook at Pinnacle Digest.

new-ebook_56
Culminating in well over 300 hours of research and writing, our new Ebook ‘Leading Juniors to Multimillion Dollar Buyouts’ is an incredibly valuable tool to use in your due diligence process – likely for years to come. And best of all, we are giving it away for free.

So what is it?

This Ebook identifies 50 executives, predominantly operating within Canada’s small cap industry, who have helped take at least one junior or startup from the early stages through to a buyout. Best of all, it documents the small cap stocks these executives are involved with now. Sound valuable? I certainly think it is.

A Must Read Ebook for TSX Venture Investors

Imagine being able to find over 70 small cap companies that are being ran by executives who have been involved in a previous buyout. Would you say that’s a valuable rolodex to have at your fingertips?

That was our inspiration behind the Ebook… we wanted to provide you with a rolodex of small cap leaders who’ve had clear and measurable success in the industry, and highlight what companies they are running now.

Examples from our new Ebook:

Mark O’Dea was the CEO of Fronteer Gold. Before the company was acquired by Newmont, O’Dea managed to raise equity capital for Fronteer of roughly $330 million. He grew the company from a $2 million startup into a well-funded, high profile, development focused gold company. Fronteer was eventually acquired by Newmont in 2011 in a deal worth roughly $2.3 billion.

Are you curious to find out which gold explorers Mr. O’Dea is running now?

Download our Ebook to find out…

It was September 2014, and the junior resource bear market was nearly 4-years old, but that didn’t stop Ivan Bebek from reaching the pinnacle of industry success.  As the President, CEO and co-founder of gold explorer Cayden Resources, Bebek led the company to a deal with Agnico Eagle during one of the worst resource markets in decades. Agnico Eagle agreed to acquire Cayden for roughly $205 million in September 2014. Download our Ebook to find out about the other small cap gold exploration company Ivan Bebek co-founded. It currently has a market cap of roughly $35 million.

Our exclusive Ebook offer covers the mining, oil & gas and technology industries within the TSX Venture, and is loaded with stories and individuals similar to the two mentioned above. In the small cap space, the most valuable asset a company has is its management team. Download your free copy of our new Ebook to get immediate access to this rolodex of leaders who have taken startups to buyouts, and find out which Canadian small cap stocks they are leading today.

Enjoy your free copy,

my-signature

Aaron


Aaron Hoddinott

Recent Articles