Often driven by story over substance, the universe of micro-cap stocks is a high-risk hunting ground for investors whose due diligence can’t yet differentiate hyperbole from strong fundamentals.
While optimism for the future is welcomed and arguably necessary for successful investing, this positive view must be backed up by the cold, hard numbers of financial performance to create long-term shareholder value.
In this week’s edition of Stockhouse’s Weekly Market Movers, I’ll offer you two names that paint textbook pictures of what investors should look for to optimize their exposure to micro-cap stocks.
Biotricity
Our first micro-cap stock with strong fundamentals is Biotricity, a company focused on filling the gap between remote patient monitoring and chronic care management in both medical and consumer markets.
The company sells a Food and Drug Administration-approved cardiac monitoring solution in 34 U.S. states and expects to launch numerous products over the near term, leading management to forecast adjusted EBITDA profitability by the end of fiscal Q4 2025.
Biotricity’s impending profitability follows five consecutive years of revenue growth from US$1.42 million in fiscal 2020 to US$12.06 million in fiscal 2024, accompanied by growth in gross profitability from US$0.49 million to US$8.36 million, respectively.
Given the medical technology company’s value-accretive trajectory, Biotricity stock’s (OTCQB:BTCY) over 67 per cent loss year-over-year is a strong signal for robust upside on the horizon.
Dr. Waqaas Al-Siddiq, Biotricity’s founder and chief executive officer (CEO), spoke with Stockhouse’s Coreena Robertson about the company’s Q2 2025 results. Watch the interview here.
AKITA Drilling
Our second micro-cap stock with strong fundamentals is AKITA Drilling, a top intermediate North American land drilling contractor with 36 high-spec rigs operating in major basins in Canada and the United States.
Management has tackled the effects of lower natural gas prices, fluctuating drilling demand and rising costs across the energy industry by consistently paying down debt and keeping operations net income profitable on a yearly basis in 2022, 2023 and through 2024.
Investors who have held AKITA Drilling stock (TSX:AKT.A) since January 2022 have been generously rewarded with an almost 80 per cent return to date, roughly quadrupling the performance of the S&P/TSX Composite Index.
With management expecting a strong Q4 driven by a balanced active rig mix between Canada and the U.S., AKITA is in a position to rally over the near term as its cash-flowing business enables further debt reduction, fleet upgrades and greater flexibility to create shareholder value regardless of market conditions.
Colin Dease, AKITA Drilling’s CEO, spoke with Stockhouse’s Lyndsay Malchuk about the company’s profitable Q3 2024 results. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these micro-cap stocks with strong fundamentals on the Biotricity Inc. and AKITA Drilling Ltd. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Biotricity Inc. and AKITA Drilling Ltd., please see full disclaimer here.
(Top photo of an AKITA Drilling rig: AKITA Drilling)
