Small cap stocks are stocks that have the market capitalization that ranges from $300 million to $2 billion, according to Investopedia. Contrary to how it sounds like, most small cap stocks have higher prices. What makes it small is the number of available shares.
This type of stocks allows individual investors an edge over institutional investors who make large block purchases. Large cap stock purchases only offer a small fraction of the company, unlike small cap stocks where there is a limited number of available shares. When it comes to SEC filing requirements, it is only triggered by significant purchases in small cap stocks. When individual investors make small purchases in these stocks, it rarely gets attention from the SEC.
Since the legalization of marijuana in Canada, several industry-related stocks have been gaining the spotlight. Though not only focused on the cannabis industry, here are some Canadian small cap stocks you may want to consider:
Cronos Group (CRON)
Cronos Group is one of the small cap stocks you may want to consider. This company is the first cannabis-related stock in Canada to be listed on NASDAQ and is also one of the top marijuana growers in the country’s legal cannabis market.
The company has developed a business connection globally, including Germany, Australia and Israel, and is looking to expand outside North America. CRON recently partnered with California-based retail chain MedMen. The company also dealt with Delfarma, a pharmaceutical wholesaler in Poland, and Cura, a Portland-based cannabis oil provider.
CRON has a market cap of $1 billion, making it a small cap stock, and can be purchased for around $6 per share.
Eco Atlantic Oil & Gas (EOG.V)
Eco Atlantic Oil & Gas is an oil and gas exploration company based in Toronto, Canada, but it focuses on offshore Guyana and Namibia. It is listed in the London Stock Exchange and Toronto Stock Exchange. It has partnered with Tullow Oil and Total E&P Activités Pétrolières. EOG.V holds major stakes and operates four prospective license blocks in the Walvis Basin; Sharon, Cooper, Guy and Tamar in Namibia.
According to the same article of Cabot Wealth Network, the EOG.V’s shares remain unchanged in the past couple of months. The company has a market cap of $67 million. Apart from being listed in AIM and TSX-V, it trades in the U.S. as ECAOF.
Cargojet (CJT)
Cargojet is listed in the Toronto Stock Exchange and is considered a high-growth king in Canada’s overnight shipping market, according to The Motley Fool. The company also has great position in the continued growth of the e-commerce industry in Canada.
The company takes pride in its one-of-a-kind operational expertise and its great fleet of high-payload aircraft. In this era where shipping is the most important part of the supply chain, Cargojet sure has a great future. The market cap of the company is just over $1 billion.
Investing is not only better with companies with higher market caps, but you could also rely on small cap stocks for higher returns.