Parsing Planet MicroCap Toronto - Part I
Sticking to our buckets of investments, prospects, speculations and rejections.
As noted we’re sharing more of our “research exhaust” to illuminate more of our process for others plying the trade and looking for ideas to pursue on their own.
This conference took place from October 22nd to 23rd in Toronto. Generally we evaluate ~20 companies during an event like this ranging from a few we already own and know well all the way down to first time views/meetings to determine whether we will do further work.
I’ll cover a few at a time in as many parts as it takes to get them all in. In this edition we have California Nano, Tantalus, LibertyStream Infrastructure, InTouch Insight and Rumbu Holdings.
California Nano $CANOF
I’ve know CalNano since they were a few guys in a garage. It’s grown nicely and feels like a real (albeit still small) company. They’ve grown from a 3,000 SF to a 20,000 SF facility where they do deep niche manufacturing like spark plasma sintering and cryogenic milling.
These techniques are found in areas like specialty ceramics found in some of the control rods that go into nuclear reactors.
They are seeing some demand that goes beyond high end prototyping and small runs to some interest in continuing to use them as some of these products shift into production.
The stock is down 68% over the past year and has an EV of $14M on revenues of $3.6M so it’s too small to own much off. At these levels it’s worth a tracking position and probably requires a company visit in order to get much deeper.
