It is pointless to buy a stock unless you think its share price is comfortably below intrinsic value. This is true for every stock, but for microcaps especially, as even the best among them require lengthy holding periods to realize a satisfactory return.
The importance of keeping ongoing tabs on a list of compelling microcap value stocks is then paramount, as it allows investors driven by the space’s high returns to buy shares during periods of volatility, when the broader market fails to properly assess future business prospects.
In the interest of adding to your list, and expediting your financial goals, here are three of our picks for the best microcap value stocks to buy right now, each of which offers investors numerous catalysts for share-price appreciation and sustainable growth:
PharmAla Biotech Holdings
PharmAla Biotech (CSE:MDMA) is the first publicly traded company to manufacture GMP-certified, clinical-grade MDMA, and remains North America’s only supplier. It is also the leading supplier of MDMA in the Australian market, and will conduct the first trial to assess real-world efficacy of MDMA in treating PTSD at the University of Calgary.
The company is active in the research, development and manufacturing of MDXX-class molecules, including MDMA, with the goals of developing novel drugs and supplying the global backlog of generic, clinical-grade MDMA for clinical trials. It is developing seven novel, MDMA-based entities highlighted by ALA-002, which has yielded improved cardio- and neuro-toxicity profiles, and a steep reduction in hypothermia, three adverse events associated with MDMA, and will be put through Phase 2 clinical trials in the near future.
With the U.S. FDA having approved ketamine for treatment-resistant depression, and MDMA and psilocybin for the breakthrough therapy designation, PharmAla is riding a first-mover advantage in psychedelics toward a meaningful share of its estimated US$130 billion addressable North American market – across applications including depression, addiction, PTSD and eating disorders – on top of European and Australian expansion potential.
PharmAla Biotech stock (CSE:MDMA) has gained 300 per cent over the past year, but only 20 per cent since inception in January 2022, suggesting room to run as the company advances towards further regulatory approvals. The company expects to quintuple sales to approximately C$10 million by 2024.
Saturn Oil & Gas
Our next thesis under best value stocks to buy is Saturn Oil & Gas (TSX:SOIL), a Canadian energy company developing high-quality, free-cash flowing, light-oil-weighted assets with a focus on shareholder value.
The company’s accretive acquisition strategy in Alberta and Saskatchewan has afforded it 1,929 per cent revenue growth over the past three years, during which time production has grown from 233 barrels of oil per day (bbls/d) to approximately 17,000 bbls/d.
Based on Q2 2023 production of 25,988 barrels of oil equivalent per day (boe/d), Saturn benefits from 15.8 years of reserves-based production, which positions it to continue its 100-per-cent well success rate backed by persistently high oil prices and operational efficiency, as evidenced by high operating netbacks (C$43.74 per boe as of Q3 2023).
Despite posting net income of C$74.82 million in 2022, C$219.05 million in Q1 2023, and C$51.27 million in Q2 2023, with the Q3 2023 loss of C$111.16 million reflective of active exploration and debt repayment, SOIL shares are down by 53.85 per cent over the past five years.
While it is said there is no such thing as a free lunch in investing, Saturn Oil & Gas is raising its hand to beg to differ.
Click here to read Saturn Oil & Gas’ latest investor presentation.
Plato Gold
Our final pick for best value stock to buy right now is Plato Gold (TSXV:PGC), a Canadian exploration company advancing projects in Timmins, Ontario; Marathon, Ontario; and Santa Cruz, Argentina.
The Timmins gold project includes four properties – Guibord, Harker, Holloway and Marriott – each of which substantiates its potential for housing gold mineralization with existing drill results.
Plato owns a 95 per cent interest in Winnipeg Minerals, an Argentinian company that holds numerous contiguous mineral rights across 9,672 hectares with potential for gold and silver.
The 5,146-hectare Good Hope niobium project near Marathon, Ontario, houses a large discovery made by Rudy Wahl, a well-known prospector, supported by elevated assay results and new outcrops with anomalous niobium values.
Finally, the 2,247-hectare Pic River platinum group metals (PGM) project, also near Marathon, Ontario, includes 19 claims contiguous to Generation Mining’s billion-dollar Marathon PGM project and on strike with Generation’s Sally deposit, with mapping and airborne geophysical survey-based sampling confirming similar geologies between the properties.
Plato’s abundance of prospectivity does not match with recent market sentiment, which has seen shares lose 50 per cent year-over-year, opening the door for a substantial value play contingent on your full due diligence process.
Click here to visit Plato Gold’s official website.
Join the discussion: Find out what everybody’s saying about the best value stocks to buy right now on the PharmAla Biotech, Saturn Oil & Gas and Plato Gold Bullboards, and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of PharmAla Biotech, Saturn Oil & Gas and Plato Gold, please see full disclaimer here.
