It’s dangerous out there for an active investor in individual stocks when every underlying company has an incentive to paint their operations in the most favourable light, and every piece of analysis is unavoidably linked to a subjective perspective for or against a given investment.
This is why, to keep their portfolios on the straight and narrow, investors must make objectivity their friend and keep to a strict due diligence process composed of well-documented qualitative and quantitative green flags before making an allocation. These include:
- Tailor-made management.
- Value-added products and services.
- An operational track record.
- Profitability or clear progress on the path towards it.
While essential to earning your hard-earned dollars, these green flags are not relevant unless they’re planted in markets with attractive prospects for long-term growth, creating opportunities for new ventures to fulfill unmet needs and yield significant shareholder value.
Here are three arguably mispriced stocks active in three such markets, each of which spoke with Stockhouse over the past week:
CanPR Technology
Our first mispriced stock, CanPR Technology, operates an eponymous app that helps immigrants become Canadian permanent residents. Functionality includes comprehensive tracking of immigration applications, employment opportunities, banking, telecom, insurance, accommodations and other post-immigration settlement services.
The CanPR app has been downloaded more than 1 million times, boasts about 100,000 monthly active users, and has helped more than 5,000 immigrants and counting to make the journey to Canada.
The company’s convenient, all-in-one offering eases the burden of government bureaucracy, making it an important alternative as about 1.5 million immigrants make their way into the country from 2024 through 2026, and growth continues into the 2040s according to projections from Statistics Canada.
CanPR stock (TSXV:WPR) has given back 14 per cent since going public on June 27, and may fall further owing to volatility from its low trading volume – only two shares have traded hands as of 2:48 pm ET Thursday – positioning investors to get in early on this technology and its established user base, and capitalize on Canada’s reputation for welcoming the world within its borders.
Akshat Soni, CanPR’s chief executive officer, spoke with Stockhouse’s Lyndsay Malchuk about going public on the TSXV. Watch the interview here.
Nextech3D.ai
Nextech3D.ai is an augmented reality (AR) and artificial intelligence (AI) technology company creating immersive 3D experiences at scale for the e-commerce industry. It’s focused primarily on high-quality 3D photorealistic models for Amazon and numerous other online retailers.
Nextech’s portfolio of disruptive AI-technologies includes Aritize 3D, a specialist in AI-generated 3D models and AR experiences for e-commerce, Map D, a digital event planning service, and two businesses recently spun out to shareholders:
- ARway (CSE:ARWY), a spatial computing platform, was spun out in October 2022, with Nextech retaining a 49 per cent stake.
- Toggle3D.ai (CSE:TGGL), an AI-powered 3D design studio competing with Adobe, went public in June 2023, with Nextech retaining a 44 per cent stake.
Led by chief executive officer and majority shareholder Evan Gappelberg, who boasts a more than two-decade track record of creating shareholder value (slide 3), Nextech is focused on staking a claim in multiple hypergrowth markets representing more than US$350 billion (slide 7), and expects continued growth across its four business lines driven by AI’s ability to streamline and enhance user experiences.
Despite its favourable prospects, Nextech3D.ai stock (CSE:NTAR) has given back more than 88 per cent year-over-year, last trading at less than two times 2023 revenue, which feels awfully cheap should the aforementioned hypergrowth continue as projected.
Gappelberg spoke with Stockhouse’s Lyndsay Malchuk about Nextech’s new deal with Wyvern Creations, the largest independent crossbow dealer in the United States. Watch the interview here.
New Pacific Metals
Our last but not least mispriced stock is New Pacific Metals, a junior miner focused primarily on silver, in addition to gold, lead, zinc and copper, whose three projects in Bolivia find themselves in an opportune time for their target commodities:
- Silver recently hit a decade-high of more than US$30 per ounce, gaining more than 100 per cent since 2020 propelled by a rising deficit in excess of 180 million ounces.
- Gold, for its part, has been testing new all-time-highs thanks to persistent inflation and elevated political tensions across the world.
- Zinc demand is expected to triple by 2030.
- Copper demand is looking at a 20 per cent upside by 2035.
- Lead is forecasted to rise in price later this year and over the coming decade, though the global market was oversupplied in 2023.
New Pacific is focused on creating value from this demand through its flagship Silver Sand project, which has reached the pre-feasibility stage and boasts more than 175 million ounces of silver in proven and probable reserves, in addition to:
- The Carangas project, where a 2023 mineral resource estimate details indicated resources of 205.3 million ounces of silver, 1.5 million ounces of gold, 1.4 billion pounds of lead, 2.6 billion pounds of zinc and 112.6 million pounds of copper, and inferred resources of 47.7 million ounces of silver, 217,700 ounces of gold, 298 million pounds of lead, 533 million pounds of zinc and 16.8 million pounds of copper. A preliminary economic assessment is slated for later this year.
- The Silverstrike project, which is prospective for silver, gold, lead, zinc and copper across multiple drilled or samples zones worth follow-up exploration.
Sitting at a more than 70 per cent loss from its all-time-high in 2021, and at a 5.24 per cent loss since 2019, the market has priced New Pacific Metals stock (TSX:NUAG) at only C$371 million in market capitalization. This fails to recognize the billions worth of ounces the company has discovered and the high likelihood of its management team of mining stalwarts across finance, law, geoscience, exploration and executive leadership unearthing more riches over the coming years.
Andrew Williams, New Pacific Metals’ chief executive officer, spoke with Stockhouse’s Coreena Robertson about the latest updates at Carangas and Silver Sand. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these mispriced small-cap and micro-cap stocks on the CanPR Technology Ltd., Nextech3D.ai and New Pacific Metals Corp. Bullboards, and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of CanPR Technology Ltd., Nextech3D.ai and New Pacific Metals Corp., please see full disclaimer here.
(Top photo, generated by AI: Adobe Stock)