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Top 8 Canadian Stock Picks under $10 – Growth Stocks, NO Oil, NO Gas, NO Mining

Martin L. Posted On September 19, 2018
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Top Picks under $10

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If you are looking for stocks under $10, you’ll find a bunch of Energy Stocks.

We don’t like resources stocks (Oil, Gaz, Mining).

We browsed the Top Picks for you to select growth stocks and build our Top 8 Canadian Stock Picks under $10.

I call those industries (Oil, Gas, Mining) Capital Destroyers, as all are cyclical, ebbing and flowing through the years, with little cash flow predictability, and hardly any sustainable wealth creation to be seen.
Robin R. Speziale

Discover What's Inside

  • Growing faster than its US peers…
  • Trading at 13 times earnings…
  • A lot of these companies have been taken over…
  • They just won a $100 million contract…
  • They doubled the size of the company…
  • Generates a lot of free cash flow…
  • Strong management team…
  • It has over 4 million mobile users…

Growing faster than its US peers…

StorageVault Canada (SVI-T) — Stockchase
StorageVault Canada (SVI-T) — Stockchase

Opinion about SVI-T: Likes the company and what they're doing. National presence. He sold because US counterparts were struggling, and he feared those struggles would bleed into the Canadian market. A big pending IPO in the US could take some of the lustre out of this name. CEO fears seasonal trends may not develop as…

stockchase.com stockchase.com
SVI chart by TradingView
 

The management team has done a great job.  The business is growing faster than its US peers.  They have put $800 million into buying assets and increasing rental rates on a per foot basis.

Mike Archibald

Trading at 13 times earnings…

Stingray Digital Group Inc. (RAY.A-T) — Stockchase
Stingray Digital Group Inc. (RAY.A-T) — Stockchase

Opinion about RAY.A-T: Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.

stockchase.com stockchase.com
RAY.A chart by TradingView
 

This music media company produces music for cable companies. It trades at only 13 times earnings and could easily trade at higher multiples.

Peter Hodson

A lot of these companies have been taken over…

GMP Capital Trust Inc (GMP-T) — Stockchase
GMP Capital Trust Inc (GMP-T) — Stockchase

Opinion about GMP-T: Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Investors responded positively to news that avoids a proxy fight for Richardson, which they will fully take over. They are expected to buy back $40M which will result in greater per share earnings leverage. Unlock Premium - Try 5i Free

stockchase.com stockchase.com
GMP chart by TradingView
 

A lot of these companies have been taken over.  They are raising money for marijuana and crypto currency stocks.

Benj Gallander

They just won a $100 million contract…

Covalon Technologies (COV-X) — Stockchase
Covalon Technologies (COV-X) — Stockchase

Opinion about COV-X: (A Top Pick Aug 08/18, Down 78%) They had a $100 million contract from the Middle East, but the revenue in the deal has been delayed. COV had huge promise and now it's Show Me The Money. The revenue delay is hurting them. Also, they had a recent stock issuance. But insiders…

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COV chart by TradingView
 

This company makes wound dressings for medical devices and just won a $100 million contract overseas.  Earnings growth is going to massively accelerate with the new contract.

Peter Hodson

They doubled the size of the company…

Sangoma Technologies Corp. (STC-T) — Stockchase
Sangoma Technologies Corp. (STC-T) — Stockchase

Opinion about STC-T: The chart shows a massive spike up, massive drop, and now recovery in the past year.  They likely paid too much for a company in 2022 and were trading at a high PE. He had added shares in 2023-4 after a new CEO started bundling products, focus on margins and integrated companies.…

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STC chart by TradingView
 

They are involved in telephony and telephony products.  He thinks the street has the story a little bit wrong.  They basically doubled the size of the company.

Gerard Ferguson

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Generates a lot of free cash flow…

Element Fleet Management (EFN-T) — Stockchase
Element Fleet Management (EFN-T) — Stockchase

Opinion about EFN-T: Company based on effective management of auto fleets for corporate accounts. New apps and technology is allowing for better management of business. Recent share price strength good for long term investors - but would wait to buy on weakness. Overall a strong business. 

stockchase.com stockchase.com
EFN chart by TradingView
 

It’s the North American and Australian leader in fleet management. Generates a lot of free cash flow. Trades at a discount to book value at 8x next year’s earnings.

Alex Ruus

Strong management team…

Brick Brewing Company Ltd. (BRB-T) — Stockchase
Brick Brewing Company Ltd. (BRB-T) — Stockchase

Opinion about BRB-T: (A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.

stockchase.com stockchase.com
BRB chart by TradingView
 

Fifth largest brewer in Canada. New facility only operating at half capacity, so room to grow. Strong management team. A big, efficient producer which could roll up the smaller brewers. Could also be a takeout target in future.

Colin Stewart

It has over 4 million mobile users…

Strathcona Resources (SCR-T) — Stockchase
Strathcona Resources (SCR-T) — Stockchase

Opinion about SCR-T: On his radar, but liquidity in the stock is very poor. Float is too small to buy a large chunk of shares. Likes its focus on the Montney and the oil sands (a national treasure). Loves long-dated assets and their quality. Meaningful leverage to rising oil.

stockchase.com stockchase.com
SCR chart by TradingView
 

This is the second-leading app in sports news and data in North America. It has over 4 million unique mobile users but a market cap of only $75 million. He expects this company to be sold for a much higher price.

James Hodgins
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