This is our monthly breakout stocks edition.
For May 2017, we see some candidates to become breakout stocks. Coincidentally, our selection is focused on Canada, specifically the Toronto Ventures stock exchange so these are small cap stocks.
The first small cap breakout stock for May 2017 is Atlantic Gold Corp, symbol AGB.V.
This is a junior gold miner with a market cap of $226M. The company is not profitable (yet?), its EPS is -0.03. Recently, the company came with decent drilling results.
The chart shows a breakout setup, though not exactly as we would like to see it. We miss increasing trading volume on the breakout, see the purple arrows. The breakout point is $1.05. Atlantic Gold remains strong as the gold mining stocks are correcting currently, that is a strong sign. There is definitely a possibility that the breakout will continue in May 2017.
The second small cap breakout stock for May 2017 is StorageVault Canada, symbol SVI.V.
This property management company has a market cap of $689M and an EPS -0.1.
The company has engaged in several acquisitions which is the reason their loss has widened. Their revenue keeps on growing though.
The chart looks very constructive. If the breakout above the dotted line holds in the coming two weeks, it will certainly be a ‘breakout stock’ in May 2017, in the sense that the breakout to the upper area of its bullish channel will hold.
The third small cap breakout stock for May 2017 is Cornerstone Capital Resources, symbol CGP.V.
This junior copper miner has a market cap of $120M and an EPS of -0.02.
The company is communicating good exploration results. The stock broke out at $0.1 last summer. Watch the ongoing retracement which could bring the stock to $0.32 which could be a good entry point in May 2017.