The TSX-V index has collapsed since this summer, driven by the commodities sell off. Only a handful of names are worth considering.
Going into 2016, we have selected our top 3 micro caps, which, given that the stock market would not collapse, could bring extraordinary returns.
Edgewater Wireless Systems (YFI.V) is testing its breakout level at $0.30. With a $35M market cap, and its proprietary WiFi3 technology, this company could be setting up for a huge breakout. Next week, the company will be announcing Q3 results. The chart shows that volume is picking up again lately, but a breakout on huge volume is a mandatory condition to become a multi-bagger in 2016.
Lingo Media Corp (LM.V) showed an incredible performance this year. The company’s market cap is $24M. The stock went ahead of itself, and a retest of the previous highs at $0.60 seems inevitable. The key to watch is whether Lingo Media can continue to show extraordinary revenue growth in 2016. Our red flag was the high number of outstanding shares, as discussed last week.
IWG Technologies (IWG.V) just broke out recently. The company has a market cap of only $11M, and a too high number of shares outstanding. However, a continuation of recent performance and profits would almost guarantee a beautiful momentum pattern in 2016.
NOTE: The companies discussed in this article are micro caps (nano caps), so be careful as risk is elevated!