With inflation hitting 2.8 per cent YoY in June, investors should monitor for a rebound in small and microcap stocks as risk-on sentiment reawakens and more capital returns from the sidelines.
Though grocery and housing prices remain high, the Bank of Canada’s hawkish monetary policy, which has seen it raise its benchmark interest rate to 5 per cent, seems to be cooling down the post-pandemic economic boom. Energy commodities, a key component of the Consumer Price Index, have dropped steeply, as have key industrial metals like lithium, zinc and cobalt, and goods have been relatively stable over the past year, while inflation came in at 8.1 per cent only last June.
This scenario should lengthen the general investing public’s collective time horizon, opening them up to higher-reward stocks that may be newly listed, less established, pre-revenue, or unprofitable, that nevertheless offer clear value propositions that merit long-term conviction.
With this thesis in mind, here are three microcap stock picks that had our readers buzzing this past week. Each of them is actively growing market share in specific niches within their industries, which, in turn, are slated for long-term growth:
BIGG Digital Assets comments on crypto regulation and exciting industry prospects
BIGG Digital Assets owns, operates and invests in crypto businesses geared toward a compliant and regulated ecosystem.
These businesses include:
- Netcoins: a regulated cryptocurrency exchange
- Blockchain Intelligence Group: a regulatory software developer for the crypto industry. Programs include QLUE, a virtual money investigation tool, and BitRank Verified, a crypto transaction risk verification tool
- TerraZero: a metaverse solutions company
According to Statista, revenue in the cryptocurrency industry is estimated to grow at a CAGR of 14.40 per cent from US$37.87 billion in 2023 to US$64.87 billion in 2027.
BIGG Digital Assets stock (CSE:BIGG) is up by 52.17 per cent year to date.
GlucoTrack releases positive feasibility study for implantable continuous glucose monitor
GlucoTrack develops glucose monitoring technology for the diabetes community.
The company has reported successful R&D for its blood-free and pain-free portable and near instant glucose test for Type 2 diabetes patients.
Testing for its continuous glucose monitor has also been positive, with a feasibility study supporting a two-year lifespan for the device, which is over four times that of current monitors on the market. CEO Paul Goode spoke with Coreena Robertson about the news.
According to Fortune Business Insights, the global blood glucose monitoring market is projected to grow at a CAGR of 9.9 per cent from US$17.03 billion in 2023 to US$32.99 billion in 2030.
GlucoTrack stock (NDAQ:GCTK) is down by 79.80 per cent year to date.
Hank Payments launches first college on its cash management platform
Hank Payments offers a banking-as-a-service platform to automate consumer cash management and unlock growth opportunities for institutions.
The platform features solutions designed to improve financial performance across a diverse set of verticals, including:
- Automotive, RV and powersports
- Banks and credit unions
The company’s newest vertical, Hank EDU, provides an end-to-end solution for schools and students to manage cash. With one college onboarded, and five more in the pipeline, CEO Michael Hilmer sat down with Coreena Robertson to discuss how Hank EDU is shaping up into the future.
According to Expert Market Research, the global fintech market is forecast to grow at a CAGR of 16.8 per cent from US$194.1 billion in 2022 to US$492.81 billion in 2028.
Hank Payments stock (TSXV:HANK) is up by 75 per cent year to date.
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This is sponsored content issued on behalf of BIGG Digital Assets, GlucoTrack and Hank Payments, please see full disclaimer here.