A stock price is always an indication, but what it signifies is by nature up for debate, with buyers on one side of the argument and sellers on the other aligning their interests into a market.
In some cases, a stock that falls year after year is becoming an increasingly attractive buy, thanks to quality operations that for one reason or another continue to elude broader investor awareness and the closing of the gap between perception and intrinsic value.
In others, a stock may languish for years, despite its underlying business’ long-term value creation potential, until the right catalyst comes along to de-risk operations enough for the average investor to feel comfortable putting money at risk.
In the newest edition of Weekly Market Movers, I’ll paint pictures of two companies that fit these descriptions, each of which joined Stockhouse for an interview over the past week.
Grande Portage Resources
Our first stock to classify under compelling buy is Grande Portage Resources, market capitalization C$24.56 million, a mineral explorer developing its flagship New Amalga gold project about 25 km north of Juneau, Alaska, within the Juneau gold belt, which has yielded over eight million ounces of gold.
Amalga’s estimated resources stand at 1,438,500 ounces of gold and 891,600 ounces of silver indicated and 515,700 ounces of gold and 390,600 ounces of silver inferred, representing over US$6 billion in the ground (according to prices as of April 10) spread across six large veins. Resources remain open at depth and along strike backed by 240 Grande Portage drillholes spanning 54,000 metres featuring numerous multi-ounce gold intercepts (slide 10).
With about C$1.5 million in treasury as of January 2025 and a wealth of drilling to be followed up on during 2025 exploration, the company is equipped to supply the market with positive news flow and better align its stock with the price of gold’s over 100 per cent return since 2020.
The broader market believes otherwise, with Grande Portage Resources stock (TSXV:GPG) having given back 17.39 per cent year-over-year while gaining only 5.56 per cent since 2020. Shares last traded at C$0.19.
Kyle Mehalek, Grande Portage’s mine planning & project development consultant, spoke with Coreena Robertson about the company’s value-accretive sensor-based ore sorting test work at New Amalga. Watch the interview here.
NetraMark Holdings
Our second stock pick deserving of your consideration is NetraMark Holdings, market cap C$113.15 million, which deploys generative artificial intelligence and machine learning to improve outcomes in the pharmaceutical industry, specifically in the realm of clinical trials.
The company’s NetraAI technology relies on an algorithm that can analyze data sets, including small ones, according to multiple variables simultaneously, yielding actionable conclusions segmented by disease, efficacy and drug sensitivity.
Management has grown NetraMark’s sales pipeline by over 6 times to 133 leads as of September 2024, in addition to over 30 potential channel partners, having closed over C$1 million in deals to date. This includes market validation through four contracts with a Nasdaq-listed biopharma company commanding over US$10 billion in market cap with a large late-stage drug pipeline.
With NetraAI’s gross margin profile of over 90 per cent and NetraMark’s low fixed monthly cash burn of about C$150,000, the company should be able to find its way to net income profitability over the near term by continuing to close deals – regardless of where the AI tailwind flows – thanks to its value-added results.
Investors in NetraMark Holdings (CSE:AIAI) have been standing behind this thesis, pushing the stock up by 370 per cent year-over-year – after having remained more or less flat since listing in January 2023 – driven by a recently announced partnership with a top global pharmaceutical company to develop new therapies for autoimmune disorders. Shares last traded at C$1.41.
George Achilleos, NetraMark’s chief executive officer, joined Lyndsay Malchuk to discuss the company’s new global partnership with Worldwide Clinical Trials, a full-service contract research organization active in over 60 countries. Watch the interview here.
Thanks for reading and I’ll see you next week for a new edition of Stockhouse’s Weekly Market Movers. Here’s last week’s article, in case you missed it.
Join the discussion: Find out what everybody’s saying about these stocks to buy on the Grande Portage Resources Ltd. and NetraMark Holdings Inc. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Grande Portage Resources Ltd. and NetraMark Holdings Inc., please see full disclaimer here.
(Top image, generated by AI: Adobe Stock)