By far the strongest momentum stock at this point in the TSX Ventures Exchange TSX.V is Lingo Media (symbol LM.V).
The company provides English learning classes, both in digital and print format. Throughout 2015, the revenues of the company are truly exploding, while costs remain disproportionately low. Check the revenues and costs below, for the first 9 months of 2014 and 2015.
The financial results are reflected in the stock chart. The breakout point was $0.25, which was breached on huge volume. Since then, the stock was bought on big volume each time the ascending trendline was touched, a very strong signal of buying interest in the market.
From a fundamental point of view, we are concerned about the extremely high number of shares outstanding (approx. 28M) vs. the company’s market cap (approx. 23M). We don’t know (yet) how to explain this unusually high ratio, but are trying to find out.
The company is doing great in 2015. The key question is whether Lingo Media can replicate this success in 2016 and beyond. We will provide an answer to that question as soon as we have found out.