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Canadian Small caps and Penny stocks

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  • Jul 20th, 2018 9:38 am
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Deal Expert
User avatar
Apr 21, 2004
44750 posts
11503 upvotes
hankook wrote:
Jan 2nd, 2018 11:13 pm
do you already own SME?
No. Just FWZ lol.

But that entity is almost solely worth its two holdings.

Was contemplating but then if SRG ran up too fast then maybe SME could be slightly overvalued.

Pamplonatrader still likes zinc's prospect best but he got into TK Tinka at 20 cents in late 2016 so he has time on his side. I switched to FWZ after buying TK around 50 and selling at 73 because co. bought property rights from Hudbay when zinc was languishing as 50 cents but have yet to fork $750k. Bought right after IPO and had to stomach significant drop in share price at low trade volumes. Recently it has been going up on low volume as there are no ready sellers lol.

Ceo.ca is worth checking out if only for the news and SEDI channels. Lots of good info on mining stocks there. Lots of pumping as is everywhere but at least there are legit investors and geologists out there.
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
TNA is cleaning up the balance sheet to be sold off to a larger chain, it is coming.

Your assumption on casino's dying isn't accurate, it is just an opinion. The whole online casino is killing brick or mortar places isn't accurate as well, it would have killed off all these places long time ago. Online gaming isn't a new thing, it has been around for a long time now.

Also I don't buy plays that I expect a breakthrough, that's speculative plays and that is literally the complete opposite of how I invest. Doesn't make it right or wrong, but makes it less risky and allows me to sleep at night vs hoping and praying certain plays come out with massive news.

But hey to each their own, we all have our ways on how we invest. I'm not looking for 10000% gains, those happen very rarely and you will miss more than you hit with those plays, just my opinion.
daivey wrote:
Jan 2nd, 2018 8:21 pm
It's a casino chain. from what I remember reading after you posted about them, they have like 4 casinos in Washington state - my memory is foggy now and im to lazy to go read up on it.

so think about it.. how many casinos do you see opening up on a regular basis? how much does it cost to do that? And then, factor in they aren't in areas that are exactly booming either. So that's why I said I don't see the opportunity for growth.

That doesn't mean they can't be profitable and a good business. There are lots of stock like that... but I thought the reason u buy penny stock is beacuse u expect a break through..... e.g. medical you got cures/patents/etc..... technology you got new tech/patents, royalties, etc.
but casino gaming??? you have brick and mortar............. no online play? wheres the growth in that.

maybe if I read that they were the holders of some really cool gaming patent and about to release a new app on the iphone/facebook/instagram to help them get people around the world playing.. then yeah I could see explosive growth potential.

but brick and mortar casinos are dying.
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
Volume up huge on the venture exchange, seems like with all that money made on crypto, weed and with oil coming back...it is bringing back the $ to this battered exchange
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
Been accumulating CAF.V past few months

I sold it off at solid profits months back but now its sitting at 6.5-7 cents and makes no sense, stock is awesome and nothing much better than it at this market cap

Someone on here was buying at 5.5-6 cents, that poster still have shares?
Last edited by loopy1984 on Jan 3rd, 2018 2:30 pm, edited 1 time in total.
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
CAF Q3 and MD&A

Price: $0.065
Common Shares: 47,426,195
Options/Warrants: Nil
Insider Holdings: 15,391,328 or 32.5% as per www.Sedi.ca
Website: www.canafgroup.com

Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value)

ASSETS (USD)
Cash: $671,367
Trade Receivables: $907,084
Income Tax Receivable: $27.960
Sales Tax Receivable: $1,575
Inventories: $504,600
Prepaid Expenses: $39,166
Property & Equipment: $1,202,245
Intangible: $1
Total Assets: $3,353,998 (USD)

LIABILITIES
Trade Payables: $732,024
Sales Tax Receivable: $39,234
Income Tax Payable: $958
Current Bank Loan: $78,590
Total Bank Loan: $411,488
Total Liabilities: $1,262,294

Q1 2017 Results
Sales: $2,991,706
Net Income: $198,221 USD

Q2 2017 Results
Sales: $3,490,753
Net Income: $236,961 USD

Q3 2017 Results
Sales: 1,961,208
Net Income: $187,796 USD

Nine Month Results (2017)
Sales: $8,443,667
Net Income: $622,730 USD

Earnings Per Share:
$622,730 USD X 1.235(rate today) = $767,490 CAD

$767,490 CAD / 47,426,195 (shares) = $0.016 CAD earnings per share

MD&A Highlights

After an extremely positive and profitable first two quarters to the financial year, Q3 reflects an expected short-term period of depressed Sales, and subsequent reduction in earnings. Despite Sales reducing significantly for the period, the Corporation remained profitable, again demonstrating its resilience in difficult trading conditions. Sales are expected to increase slightly for Q4 and Q1, 2018.

Revenue for the 9-month period increased to $8,443,667 in comparison to $2,907,198 for the same period last fiscal year. The Corporation recorded a net income of $595,716 (C$741,080), in comparison to a net loss of $335,864 for the same period the previous year. Adjusted EBITDA rose to $881,885 (C$1,097,080) for the period.

The Corporation continues to understand that for Southern Coal to reach its full potential, its customer bases needs to increase so to reduce its reliability on key suppliers. Southern Coal is continuing to work with a new potential major customer to supply product in South Africa and remains hopeful for trial loads to be dispatched in Q1 or Q2 2018.

The board believes that it is in the interest of the Corporation, and its shareholders, that Southern Coal (Pty) Ltd., achieves a Broad-Based Black Economic Empowerment, (“B-BBEE), Level 4 rating during the fiscal year 2018. During the quarter the Corporation can confirm that it has had discussions with its customers over the need for Southern Coal to improve its current B-BBEE rating so to remain compliant with its customers own supplier requirements. During the coming three months, the Corporation expects to announce the details of a deal that is currently being negotiated and finalized by specialists. All in all, the board is of the belief that the final deal that will be agreed will be one that will ensure sustainability and offer growth opportunity for the South African business.

The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa

The Corporation has an agreement to lease premises for its coal processing plant in South Africa for a term of ten years, expiring on December 31, 2020. The agreement offers the Corporation, in lieu of rent, feedstock coal to be delivered to its adjacent premises, which it purchases at market price. Should the Corporation decide to purchase feedstock coal from an alternative supplier which the lessor is otherwise able to provide, then a monthly rent of Rand 200,000 ($14,846) is payable. To date, the Corporation has not been required to pay any rent for the premises as it has continued to purchase feedstock coal from the landlord.

The bank loan bears interest at 9.25% per annum, matures on January 7, 2019, and is secured by the Corporation’s furnace acquired with the proceeds from the loan. The bank loan is repayable over 42 months in blended monthly payments of Rand 393,779 ($29,230 translated at October 31, 2016 exchange rate). During the period ended July 31, 2017, the Corporation incurred interest expense totaling $42,420 (October 31, 2017 – $71,721).

In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Corporation has been involved in a legal dispute with Kilembe Mines Limited, (“KML”). In January 2013, the High Court of Uganda referred the case back to arbitration for settlement. On May 29, 2013, a preliminary meeting was held between the Corporation, KML and the arbitrator. The Corporation can confirm that further meetings were scheduled for August 2013, after filings of amended statements of defence and claims had been submitted. Since the initial meeting however the Government has awarded a deal to a Chinese Consortium to manage and operate KML. The Corporation’s appointed Ugandan Advocates have notified the board that the Arbitrator has stepped down for personal reasons. The Corporation’s Uganda Advocates and the Government’s Solicitor General have agreed to a new Arbitrator, Retired Justice James Ogoola. The parties held a preliminary meeting with the Arbitrator who requested them to provide him with their fee estimate for the conduct of the Arbitration. The estimate has since been provided to the Arbitrator who is yet to confirm whether or not he is agreeable to it. In the meantime the Corporation appointed SRK Consultants to prepare a brief document to quantify the ‘lost opportunity’ value of the termination of the Kilembe Project. During the current financial year the Corporation will utilize this document to assist in the submission of a revised claim against KML. The Corporation has received no new information since 2014, and the Corporation remains unable to give an indication of either the quantum or any likely date by which a settlement will or will not be reached. The original claim, before costs, is for a money sum of US$10,370,368 as at January 24, 2007.
Deal Fanatic
Oct 1, 2004
5025 posts
346 upvotes
Toronto
loopy1984 wrote:
Jan 3rd, 2018 2:30 pm
Been accumulating CAF.V past few months

I sold it off at solid profits months back but now its sitting at 6.5-7 cents and makes no sense, stock is awesome and nothing much better than it at this market cap

Someone on here was buying at 5.5-6 cents, that poster still have shares?
I did at 5.5cents few month ago, do you think it will run to double digits? or will hold steady till next report? In July when it hit all highs at 11cents was due to positive earnings as well?
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
Awesome buy, your avg is lower than mine. I now have 580,000 at an avg of 6.25 cents

The party hasn't even started yet, me and my people have been researching this play for months now and we figured out why the stock was dumped when it had solid Q's and they are close to signing another big contract next few months.

Basically and old investment fund bought in years ago but now they needed liquidity for other plays so they began selling off their massive position at market prices. They had 7 million shares and dumped it all! I confirmed this by contacting CAF directly and they said that is what happened.
greg123 wrote:
Jan 3rd, 2018 3:31 pm
I did at 5.5cents few month ago, do you think it will run to double digits? or will hold steady till next report? In July when it hit all highs at 11cents was due to positive earnings as well?
Penalty Box
Dec 27, 2013
6992 posts
2808 upvotes
Toronto
of course it's an opinion.

loopy1984 wrote:
Jan 3rd, 2018 11:21 am
TNA is cleaning up the balance sheet to be sold off to a larger chain, it is coming.

Your assumption on casino's dying isn't accurate, it is just an opinion. The whole online casino is killing brick or mortar places isn't accurate as well, it would have killed off all these places long time ago. Online gaming isn't a new thing, it has been around for a long time now.

Also I don't buy plays that I expect a breakthrough, that's speculative plays and that is literally the complete opposite of how I invest. Doesn't make it right or wrong, but makes it less risky and allows me to sleep at night vs hoping and praying certain plays come out with massive news.

But hey to each their own, we all have our ways on how we invest. I'm not looking for 10000% gains, those happen very rarely and you will miss more than you hit with those plays, just my opinion.
Deal Fanatic
User avatar
May 2, 2006
5276 posts
1185 upvotes
GTA
herculesmaxpower wrote:
Jan 3rd, 2018 10:05 am
It's too bad MOS can't seem to break 22.
I decided to exit MOS on that runup to load up on GGI, IMR, CSR as I see a better near-term opportunity with those plays. Not bearish at all on MOS, just moving my bets elsewhere.

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My current small cap holdings: ACU, AIS, CSR, DM, GGI, IMR.
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Member
Dec 31, 2015
306 posts
18 upvotes
Vancouver, BC
izzyzz wrote:
Jan 4th, 2018 9:34 am
I decided to exit MOS on that runup to load up on GGI, IMR, CSR as I see a better near-term opportunity with those plays. Not bearish at all on MOS, just moving my bets elsewhere.

-----------------------------------------------------------------------------------------------------------------
My current small cap holdings: ACU, AIS, CSR, DM, GGI, IMR.
-----------------------------------------------------------------------------------------------------------------
Nice. I probably should have sold last week as well when it was around 0.25. Wow you've really loaded up on GGI eh? You sold GIII as well?
Deal Fanatic
User avatar
May 2, 2006
5276 posts
1185 upvotes
GTA
herculesmaxpower wrote:
Jan 4th, 2018 10:02 am
Nice. I probably should have sold last week as well when it was around 0.25. Wow you've really loaded up on GGI eh? You sold GIII as well?
Yes, got out of GIII earlier as well, for now. GGI is my biggest current holding with AIS not far behind.
Member
Dec 31, 2015
306 posts
18 upvotes
Vancouver, BC
Very nice. I keep thinking about buying more GGI but I'm just not sure. I can't believe Eric keeps buying. Bought more shares yesterday.
Sr. Member
Jan 27, 2016
726 posts
255 upvotes
Toronto, ON
I have sent the company an email about the law suit they have against a company in Africa for i think 11 million...wondering what is the status on it and if we have any chance?? That would be huge for our valuation
greg123 wrote:
Jan 3rd, 2018 3:31 pm
I did at 5.5cents few month ago, do you think it will run to double digits? or will hold steady till next report? In July when it hit all highs at 11cents was due to positive earnings as well?

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