A look at some small-cap stocks making news - or about to.
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 53 per cent over the past 52 weeks. It hit a record 1,496.55 on June. 2. The Russell 2000 in the U.S. is up about 40 per cent over the past 52 weeks. It hit a record of 3,023.55 in early Thursday trading.
Small-cap summary:
Jamieson Wellness Inc. (JWEL-T) shares surged on Thursday after the company confirmed a media report that it’s exploring a potential sale.
“The company confirms that, following an unsolicited inbound proposal to acquire the company, its board of directors has initiated a process to enhance shareholder value and is in discussions with interested parties relating to a potential transaction,” the company stated in a release.
It added that there’s no assurance that the process will result in any transaction.
Bloomberg reported that the vitamins and supplements maker is working with Bank of Montreal and Canaccord Genuity Group Inc. to explore a sale.
In a note, TD analyst Derek Lessard described the news as “potentially positive” for shareholders.
“[It] reflects the view that a credible sale process could help surface value that we do not believe is reflected in the current share price,” he wrote. “A transaction is not guaranteed, and there is no indication that a deal is imminent; however, even the possibility of strategic interest reinforces our view that JWEL’s valuation looks too low relative to its growth profile, execution record, and precedent transaction multiples.”
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Evertz Technologies Ltd. (ET-T) reported fourth-quarter results that were ahead of analysts’ expectations.
After markets closed on Wednesday, the Burlington, Ont.-based software-defined video network (SDVN) technology company reported revenue of $131.6-million for the quarter ended April 30, an increase of 3 per cent from $127.8-million last year.
The result beat expectations of $130.7-million, according to S&P Capital IQ estimates.
It said recurring software, services and other software of $65.8-million was up 17 per cent year over year.
Net earnings of $15.2-million or 20 cents per share for the quarter were up from $13-million or 17 cents a year ago. The result beat expectations of 18 cents.
Cannacord analyst Robert Young said the results were ahead of his team’s model but in line with consensus, “featuring modest top-line growth and strong profitability.“
He maintained his “buy” recommendation and increased his target to $18 from $17.50.
“We believe Evertz’s momentum in cloud and services, increasing exposure to defence, strong backlog levels, and historically strong execution justifies a premium multiple relative to the blended defence and media technology peer average of 13x C26E EV/EBITDA and 11x C27E EV/EBITDA.”
BMO analyst Thanos Moschopoulos maintained his “outperform” and has an $18 target on the stock.
“We believe the stock remains attractive given Evertz’s cash generation, dividend, and the ongoing improvement to its revenue mix,” he wrote.
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Clairvest Group Inc. (CVG-T) reported higher profit for its fourth quarter ended March 31.
After markets closed on Wednesday, the private equity firm reported net income of $62.3-million, or $4.56 per share for the quarter. The result was up from $20.7-million or $1.46 per share a year earlier.
“The net income for the fourth quarter of fiscal 2026 reflects the gain on the sale of Star Waste which was completed subsequent to quarter end, a net increase in the fair value of Clairvest’s other portfolio companies and a corresponding increase in carried interest from the CEP Funds,” the company stated.
Clairvest said its book value was $1.293-billion or $96.60 per share as at March 31 compared with $1.255-billion or $91.66 per share as at December 31 and $1.252-billion or $88.30 per share as at March 31, 2025.
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AGF Management Ltd. (AGF-B-T) shares were up for the second straight day on Thursday after the Toronto-based firm reported second-quarter results that beat expectations.
Before markets opened on Wednesday, AGF reported adjusted net income attributable to equity owners of $46.9-million or 72 cents per share compared to $26-million or 39 cents for the same period last year. The result beat expectations of 54 cents per share for the latest quarter, according to S&P Capital IQ.
Adjusted EBITDA of 64.1 million was up from $39.5-million last year and ahead of expectations of $52.1-million.
“The second quarter reflects the continued diversification and growth of our business,” said CEO Judy Goldring in a release. “Our strong results and cash flow generation reflect continued operating momentum and the ability to execute on our strategic plan.”
RBC Dominion Securities analyst Bart Dziarski increased his target to $23 from $21 after the earnings report and maintained his “outperform” (buy) rating.
“We believe current valuation does not reflect the company’s strong investment performance track record, capital deployment optionality, and potential inclusion in the Dividend Aristocrat Index,” he wrote in a note. “AGF has started to pivot towards building a Private Markets business, which we have a neutral view on overall driven by lack of scale. AGF trades at a discount P/E multiple vs. peers and in line with its historical average. We believe a target multiple of 9x P/E is justified, which is slightly above AGF’s historical average and at a smaller discount to peers.”
Desjardins Securities analyst Gary Ho increased his target to $23 from $22 with a “buy” rating.
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Dye & Durham Ltd. (DND-T) shares hit an all-time low on Thursday following news earlier in the week that the legal software company dropped its chief executive officer after board changes that put one-time chairman Tyler Proud effectively in command of the embattled company’s direction.
The move came two weeks after D&D’s outgoing chairman Alan Hibben called the brother of former CEO Matt Proud unfit to lead the company, adding to what has become a protracted Bay Street soap opera.
The Toronto-based company said after markets closed on Tuesday that CEO George Tsivin was “no longer serving as chief executive officer” and would be replaced on an interim basis by a board committee chaired by Tyler. Read the full story from the Globe’s Sean Silcoff here
The stock went public in July, 2020 at $7.50 a share. In the past 52 weeks, it has traded between a high of $12.13 and a low of $1.55, before Thursday’s low of $1.46 (as of mid-morning trading).
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Ballard Power Systems (BLDP-T) shares fell this week after the hydrogen fuel cell technology company announced a deal to acquire GeoPura Limited, a hydrogen-based power solutions provider for £301.1 million or about US$400 million.
In a release before markets opened on Tuesday, the Vancouver-based company said the deal would be funded through a combination of £82.5-million in Ballard cash on hand and the issuance of about 50.8 million Ballard common shares to GeoPura shareholders, at US$5.02 per share. It said the price is based on Ballard’s 30-day volume-weighted average share price. The stock was trading at around US$3.60 early Thursday.
Ballard also said it could pay another £27.5-million if GeoPura achieves certain specified financial milestones after the deal closed.
“The transaction represents a transformative acquisition that establishes Ballard as a vertically integrated and capitally efficient energy-as-a-service (“EaaS”) provider with end-to-end capabilities spanning hydrogen production, distribution, logistics, refueling, fuel cells, and high-performance stationary power solutions," the company stated in a release.
In a note, National Bank analyst Baltej Sidhu described the deal as “the most strategically significant transaction in Ballard’s history.”
He added: “While the company is acquiring a business expected to generate ~£38 mln in 2026E (~US$50mln, relative to our FY26E Sales ofUS$168mln for BLDP; however, unclear as to how much BLDP revenues are embedded in GeoPura figures), we believe the larger key takeaway is the transformation of Ballard’s business model from a fuel-cell component manufacturer into a vertically integrated hydrogen solution provider.“
Added Mr. Sidhu: “While the headline ~8x EV/Sales multiple is unlikely to be viewed as inexpensive, through GeoPura, Ballard should gain capabilities across the hydrogen value chain, including production, logistics, refuelling, fuel supply, stationary power generation and recurring energy-as-a-service (EaaS) offering. Management also expects ~US$25mln of annual run-rate EBITDA synergies and reiterates its target of achieving profitability by 2028E.
He maintained his “sector perform” (hold) rating on Ballard stock and US$4.75 per share target price
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Upcoming small-cap earnings:
June 26: Corus Entertainment Inc. (CJR-B-T)
June 30: Tecsys Inc. (TCS-T)
July 9: Velan Inc. (VLN-T)
July 15: Cogeco Communications Inc. (CCA-T), Blue Ant Media Corp. (BAMI-T)
July 29: Secure Waste Infrastructure Corp. (SES-T)
Aug. 6: NFI Group Inc. (NFI-T), Enerflex Ltd. (EFX-T)
-with files from David Leeder