One of the key factors behind picking winning microcap value stocks is identifying dislocations between company performance and market perception.
An easy way to find candidates for these dislocations is to use your favourite stock screener to search for companies that have been profitable over the past year while underperforming in terms of share price, suggesting potential undervaluation.
Using The Globe and Mail’s stock screener, I set parameters for price-to-earnings from 0.1 to 10, market capitalization to C$1 billion and under, and 52-week stock performance beginning from -90 per cent, and generated a list of 161 companies that have achieved the attractive feat of making money while suffering a severe drop in share price. Here are three stocks from the list that I found to be particularly compelling:
Titan Medical
Titan Medical, market capitalization C$6.86 million, is a medical technology company…
