Top Stocks: Planet Microcap Showcase
My Top 5 Picks
Before reading this article - read this one (Convincing Investors to become Shareholders) which describes:
Why Planet Microcap is important for both companies and microcap investors.
My criteria on what I am looking for when picking and ranking my stocks.
đ Notes:
This is not financial advice. This is one guys opinion to communicate my research and start discussion about these companies. To continue the discussion I suggest joining my Patreon Discord (link here).
Donât read too much into the rankings (where a stock is on this list) I will be introducing my top 10 companies out of the 110 that I researched (TOP 9%). Once you get into the top 10% of stocks, I believe ranking them is more of a personal preference based on your investing style.
đ Remember: This is article one of probably five (paid) articles I plan on releasing:
Next article will be stocks 6 to 10
Then âunderdogsâ & random picks
Finally after Planet Microcap is complete, a recap to see if my picks have changed.
Letâs go!
McCoy Global Inc. (TSX: MCB)
www.mccoyglobal.com
What they do: McCoy Global provides equipment and technology solutions that supports tubular running operationsâcritical for enhancing wellbore integrity and capturing data in the energy sector. They serve markets across the United States, Latin America, the Middle East, Africa, Europe, the Asia Pacific, and Canada.
Potential rewards: I challenge investors to dig for red flags at McCoy Globalâbecause there arenât many. The company has been a reliable supplier to the oil and gas industry for 100 years, but things just got more interesting with the launch of their new SmarTR system. Essentially, it combines their proven suite of products with a software and data analytics platform, introducing a compelling SaaS component and recurring revenue model.
In 2024, McCoy posted an 11% increase in annual revenue (with Q4 revenue up 28%) and a 37% jump in net income. Even more impressive? SmarTR didnât contribute yet to these results, as it's just hitting the market. But itâs already gaining attentionâSmarTR won a Spotlight on New Technology Award at the 2025 Offshore Technology Conference (OTC) in Houston. This is a profitable, growing company with cash on hand (no debt), dividends, a share buyback program, and a new product that's starting to gain traction. In short, McCoy checks a lot of boxes for microcap investors.
Potential risks: SmarTR is a potential game-changer, which means great upsideâbut also real downside risk if adoption of SmarTR falls flat. Thatâs the trade-off with any transformative product. McCoy also faces macroeconomic risk. With discussion about a global recession (and oil prices sliding from $80 to $60) selling into a softer oil market could be a challenge. Despite their strong execution in 2024, investors will be keeping a close eye on future earnings for any signs that headwinds are starting to drag on earnings.
Core Criteria Discussion
Good management - good pitch and believable - 5 â
McCoy isnât a new company, they have been around for over 100 years developing and selling products. This management team has adapted to change & new technologies, and is now selling their reliable and trusted products with a new SaaS software upside. The product has a good pitch, reducing required labor to run casing from 6 workers to 2 workers, saving money and increasing safety. They just won an award for innovation. Discussing all this is an experienced CEO who will shake your hand, look you in the eye, and tell you they are going to do something - and then do it. That has value at in-person events.
Good company - preferably growing and profitable - 4 â
11% annual growth in 2024 and 28% in Q4 without any contribution from SmarTR. McCoy just paid me a nice dividend, and they just bought back 362,900 shares at $2.68 on the open market. If the macro-market wasnât so bad, McCoy would be a perfect CANSLIM stock - with profitable growth, and positive cash flow rewarding shareholders. Again the only concern here seems to be <$60 oil = a collapse in global drilling operations.
âCheapâ - good ârisk verses rewardâ balance - 5 â
Currently at a $71M CAD market cap on $77.5M revenue with $13.7M cash and no debt (bonus for a healthy balance sheet). Assuming McCoy can put in another year of 11% growth (or better), YahooFinance has McCoy at an attractive valuation :
P/S <1x
P/E 8x
EV/EBITDA 4x.
âSecretâ Knowledge - Inflection point or statement from management - 2 â
I think most investors will be looking for anything McCoy can say about the momentum of their sales into the current $60 price of oil. Any conversation that sales are still showing growth at any rate, should give investors confidence that McCoy has (at the very least) limited downside risk at their current valuation. The drag on McCoyâs presentation might be good integrity: the CEO has been known to keep shareholder expectations reasonable and measured, with no âhypeâ.
Social proof - we donât want to admit it, but this matters - 5 â
McCoy is supported by several intelligent and large microcap investors, as well as beginning their journey into institutional ownership. I expect McCoy will be one of the most sought after company for meetings, and with a full room for their presentation.
đľ Summary: All around solid company and stock. Do we get another seven year bear market for oil? If the answer to that question is âNOâ - then McCoy looks pretty darn good. Great balance sheet, competent management, good growth, profitable, dividends, buybacks - again I am completely open to discussion about the risks of McCoy Global, because I canât find many risks đ¤ˇââď¸- 4.5 â
NTG Clarity Networks Inc. (TSXV: NCI)
ntgclarity.com
What they do: NTG provides digital transformation services, operating as a big data, analytics, and vertical intelligence companyâprimarily in the Kingdom of Saudi Arabia (KSA).
Potential rewards: NTG is a profitable, growing company whose stock still looks âcheapââ and thatâs an attractive combination. I first introduced my subscribers to NTG at $0.15 (and Iâm a shareholder) so yes we have seen fantastic gains, but I also bought more shares just a few days ago. Why? Because NTG has been one of the most consistently growing companies in the microcap world.
Back in Q4 2020, they reported $1.5M in revenue. Since then, revenue has climbed almost every quarter, with NTG expected to report just over $15M for Q4 2024 (due April 15th). The main thing that had held the share price back was the lack of profitability. But in 2024, they started consistently reporting solid net incomeâand the share price took off. Growth and profitability are expected to continue in 2025, with guidance calling for $75M in revenue and 16â20% adjusted EBITDA margins.
Potential risks: So why is the stock still âcheapâ? Around 95% of NTGâs revenue comes from Saudi Arabia (KSA), and that alone keeps many investors away. The region has a history of political instability, and there have been questionable contracts in the past (not necessarily involving NTG) where work was completed but payments didnât materialize. That risk canât be ignored.
That said, everyone Iâve spoken to whoâs actually visited KSA tells the same story: itâs a stable and growing economy. And letâs be honestâsince January 2020, itâs been the U.S. and Canada making headlines for tariffs and recessions, not Saudi Arabia. NTG faces zero tariff implications, and virtually no recession risk. In a world thatâs been flipped upside down, the KSA oddly looks like one of the safest places to invest.
Core Criteria Discussion
Good management - good pitch and believable - 5 â
Adam Zaghloul is the âfaceâ of NTG Clarity Networks, and is the most improved member of any management team in the past two years. When I started researching NTG their communication with shareholders was vague and full of holes. Now when you read NTGâs MD&A their communication with investors is clear, concise, and detailed. This improvement has won over even the most skeptical investors like the brilliant team over at Keystone Financial. With good stable three year contracts and the ability to provide guidance, I expect Adam will continue to win investors over to become shareholders.
Good company - preferably growing and profitable - 5 â
Full year 2024 results released April 15th
Revenue: CA$56.1m (up 102% from FY 2023).
Net income: CA$9.81m (up 474% from FY 2023).
Profit margin: 18% (up from 6.2% in FY 2023). The increase in margin was driven by higher revenue.
EPS: CA$0.23 (up from CA$0.046 in FY 2023).
Operating Cash Flow of $2.6M
Free Cash Flow of $1.6M
âCheapâ - good ârisk verses rewardâ balance - 5 â
Looking at their earnings you would think NTG would be trading at a minimum 3x sales and 30x earnings, they arenât. The perceived risk about investing in the middle-east has NTG still at a reasonable valuation (arguably even âcheapâ). Current market cap is $71M on their $56M revenue and $9.81M net income or around 1.3x sales and 7x earnings. They have provided guidance for further 36% growth on 16-20% EBITDA margins for 2025 meaning the downside is arguably quite low, as NTG continues itâs profitable growth.
âSecretâ Knowledge - Inflection point or statement from management - 4 â
I think the greatest âsecretâ coming out of NTG is how stable Saudi Arabia is. The country has immense wealth and is using it to modernized at a rapidly growing pace. 12-months ago people told me I was crazy for investing in the middle-east, I was told (keep your money somewhere safe like Canada and the USA). The past 3-months Canada and the USA has been a geopolitical shit-storm of tariff chaos and crashing stock prices - with analysts and media claiming a recession is coming. All of a sudden Saudi Arabia looks like the stable adult in the room, and the history of NTG financial success supports this.
Social proof - we donât want to admit it, but this matters - 3 â
Iâm not sure how many microcap investors attending a US stock event have heard of NTG, they are headquartered and listed in Canada with operations mostly in Egypt and Saudi Arabia. They kind of bypass the USA and have been presenting at Canadian conferences in Vancouver and Toronto. While NTG might now have a few long-term shareholders cheering them on in Vegas, I am more excited by how many new investors will hear the story and quickly move to open spec buy positions.
đľ Summary: NTG has a good mix of things I like. Not only their attractive high growth and profitability, but also a little bit of diversity in my portfolio. While some people see Saudi Arabia and think âhigh riskâ I actually see âde-riskâ as NTG offers diversity away from the many tariff and trade exposed stocks. I can own NTG from Friday to Monday without worrying about what Donald Trump is going to do over the weekend. The âKSA-30 Planâ ensures at least five years of good stable growth for NTG, and this company has earned the attention of higher quality long-term shareholders. Itâs an easy pick at number two for me - 4.5 â
đŚ Recent Planet Microcap interview with CEO (YouTube LINK HERE)
Covalon Technologies Ltd. (TSXV: COV)
ir.covalon.com
What they do: Covalon is a healthcare biotechnology company focused on the research, development, manufacturing, and marketing of medical products for infection management, advanced wound care, and surgical procedures. They operate in the United States, Canada, the Middle East, Asia, Latin America, and internationally.
Potential rewards: A lot of companies presenting at MCC Vegas are still in the early or mid-stages of a turnaroundâcutting expenses and chasing profitability. Covalon, on the other hand, has already completed its turnaround story. By the end of 2024, it could be seen as a profitable, growing company.
Despite that, fears of a global trade war and weak guidance for the first half of 2025 has knocked the share price down by 50%, from $4 to around $2. But if the company executes as expected and continues building on its profitable business model, thereâs a real chance for the stock to bounce back.
Potential risks: While trade war tensions are likely the main short-term concern for Covalon, Iâm personally more focused on the long-term. Covalon has carved out a niche as a customer-focused supplier of hospital products, and that strategy worked incredibly well over the past year. The problem? They are still up against much larger competitors whoâve been asleep at the wheel. If those giants wake up, Covalon could face pressure. Thatâs why I think the company needs a new investor pitch (and I hope I see that at Planet Microcap). Rather than relying on the recent turnaround success, they should focus on where growth will come from nextâand how they plan to keep grabbing market share even when the competition starts paying attention.
Core Criteria Discussion
Good management - good pitch and believable - 5 â
Covalon made it this high on my list mostly due to the qualitative strength of their presentation. Covalon is a âwound careâ company, and I am warning you now their presentation includes how their products help people (including children) recover from burns or surgeries - itâs both sad and shocking. Thereâs not many microcap companies that make me feel like a better person for buying their stock, but Covalon is one of them. The person delivering the presentation is Brent Ashton who took over as CEO in January of 2024, and was the leadership Covalon needed to move from unprofitable in 2023, to profitable in 2024. Covalonâs presentation is top notch and I guarantee it attracts new shareholders at Planet Microcap as itâs a hard company not to like.
Good company - preferably growing and profitable - 3.5 â
Significant improvement in 2024, but still some âwobbleâ in their earnings as 2024 was a year of âchangeâ. Q1-2025 was a little soft, and Covalon has been communicating with shareholders about how tariffs will impact them in 2025. Overall though, their earnings speak for themselves, with full year 2024 earnings of:
Revenue $31.2M (17% growth)
Gross profit of $18.9M (31.3% growth)
Adjusted EBITDA of $4.8M ($7.5 million improvement over full year 2023)
Earnings Per Share of $0.11 ($0.29 improvement over 2023)
Roughly $16M cash and no debt (bonus points!)
âCheapâ - good ârisk verses rewardâ balance - 3 â
Arguably a fair (not cheap) valuation. At todays $2.30 CAD share price Covalonâs around 2x sales and 20x earnings for 2024. Investors who buy shares are typically pulling out spreadsheets with expected earnings into 2028 as Covalon is expected to have relatively predictable stable growth (for a microcap) and thatâs one of their strengths.
âSecretâ Knowledge - Inflection point or statement from management - 3 â
Covalon primarily manufactures in Canada and sells to the USA. The CAD-USA âtrade warâ has caused the share price crash of many good companies. However, investors new to Covalon may be surprised that recent updates have stated tariffs havenât impacted the company much, and the global trade disruptions might actually benefit them both short-and-long term (most competition is outside North America). A deciding factor for some investors may be whether you think CAD-USA can rebuild their relationship, and bring back North American free trade.
Social proof - we donât want to admit it, but this matters - 5 â
Covalon is supported by many high quality investors, and in his short time as CEO Mr Ashton has rebuilt trust in the company. I expect Covalon has a good roster of investors wishing to speak with them, and shareholders willing to talk about how happy they are to have bought shares.
đľ Summary: Another good company with a mix of things to like. While Covalon might not have the explosive growth potential of other stocks attending Planet Microcap, the qualitative strength of their presentation (and support of high quality investors) puts them high on my list. Youâre getting a âgoodâ company, with competent management, a great balance sheet, some growth, good shareholders, and all at a fair price. Long-term investors who like to buy a stock (and sleep well at night) will be attracted to Covalon - 4 â
Crexendo, Inc. (NASDAQ: CXDO)
www.Crexendo.com
What they do: Telecommunications (SaaS Comms) â Crexendo is a top-tier provider of cloud-based communications software. They deliver Unified Communications as a Service (UCaaS) offerings that include voice, video, contact center, and managed IT services built for businesses of all sizes.
Potential Rewards: Thereâs nothing I like more when researching a stock than seeing improving financials while the share price is dropping. Thatâs exactly whatâs happening with Crexendo. They posted record full-year earnings with $60.8M in revenue (up 14%) with expenses only up 8%, and Q4 was their strongest quarter of the year. Well done! Even better: theyâre sitting on $18M in cash and have no debtâalways a nice safety net in a volatile market.
Potential Risks:
The only concern I have right now Crexendo is valuation. The stock may have gotten ahead of itselfâanalysts had a 1-year target of $7, and the stock was already at $7. So naturally, it cooled off post-earnings and is now around $4.50 USD.
Core Criteria Discussion
Good management - good pitch and believable - 4 â
Planet microcap has a short interview worth watching (link here) and I like their simple pitch. Some larger companies have left the Unified Communications as a Service (UCaaS) market, most notably Microsoft exiting Metaswitch. This is leaving Crexendo with an opportunity to capture (large) market share quickly. With an experienced management team preparing their entire career for this moment, their presentation sounds confident and competent.
Good company - preferably growing and profitable - 4 â
Full year 2024 earnings released six weeks ago:
Revenue $60.8M (up 14%)
Net income GAAP $1.7M and non-GAAP $7.7M or $0.06 per basic and diluted common share, compared to a net loss of $(0.3) million, or $(0.01) loss per basic and diluted common share for the year ended 2023.
$18.3M cash up from $10.3M in 2023 and no real debt.
An attractive 27.9M shares.
âCheapâ - good ârisk verses rewardâ balance - 3 â
Sometimes retail investors get a little crazy with microcap stock price. Share price ran up to $7 just last month, until analysts came out with a $7 price target, which killed the momentum. Overall I would say Crexendo now at $4.50 is at a âfairâ price with a $125M market cap on $60M of revenue, but I think we can all agree Crexendo could work on their transition to the bottom line to get price back up again, which means they need to continue execution on their higher margin software business.
âSecretâ Knowledge - Inflection point or statement from management - 3.5 â
Part of the âsecretâ for Crexendo should be educating investors on their industry niche. UCaaS is both growing and defensive, with reasons to be bullish for growth in both good and bad economies. Their exposure to tariffs is only $5M of their $60M revenue. Finally, with depressed prices everywhere, I wouldnât be surprised to hear management discussing potential M&A and putting that $18M stack of cash to work for shareholders.
Social proof - we donât want to admit it, but this matters - 3.5 â
I canât tell you the strength of their current shareholder base, but I can say that more investors are discovering this company. While researching Crexendo it wasnât hard to find write ups from Breakout Investors, Insider Monkey, and three other authors on SeekingAlpha. Despite the attention from retail, Crexendo only has 18.5% institutional ownership which could help share price with some institutional buying, and already has a strong 48% insider ownership.
đľ Summary: Share price has been basically FLAT for the past five years! What does this tell me? The downside risk is probably fairly low, with their excellent balance sheet and some growth I donât expect Crexendo is a favorite for short sellers. I can buy some shares with a tight stop loss and not lose any sleep at night. However I am gambling that 2025 is a more explosive year. The opportunity here is based on record growth and earnings for the next 1-2 years due to larger companies exiting the market, and for management to turn that success into shareholder value - 3.5 â
đŚ Recent Planet Microcap interview with CEO (YouTube LINK HERE)
Zoomd Technologies (TSXV: ZOMD)
zoomd.com
What they do: Technology (MarTech) â Zoomd operates a user acquisition and engagement platform used by mobile apps and advertisers worldwide. Their tech integrates with major digital media outlets to help businesses grow and monetize their audiences.
Potential Rewards: One reason I love microcap investing is that it feels like sociology in real time. Itâs fascinating to watch how small retail investors shape narratives around these companiesâoften irrationally. When Zoomd was riding high above $0.75 and many investors were predicting a $2 share price, I was the one waving a red flag talking about the risks (hereâs the article). Now the bullsih sentiment has collapsed and everyone is bracing for disaster, Iâm actually more bullish than ever on Zoomd. Investors have priced this stock for negative growth in 2025 - the bar is so low they could trip over it. If management at MCC Vegas simply convinces investors theyâre not going to lose that $8.9M profitâand might even build on itâthis stock could re-rate quickly.
Potential Risks:
Thereâs no shortage. Zoomdâs track record is limited, and the recent success has only drawn in more short-term tradersânot long-term believers. There's also a trust deficit around management. Investors don't know them, and they havenât proven themselves over a long stretch of time. Then thereâs the elephant in the room: China tariffs. Itâs long been rumored that Sheinâthe massive Chinese fast fashion giantâis Zoomdâs largest customer accounting for about 40% of 2024 revenue. If thatâs true, the company is heavily exposed to geopolitical risks. Sheinâs IPO has already been delayed due to tariff uncertainty, and if U.S.âChina trade tensions continue for an extended period, it could hit Zoomd like a freight train.
If Trump and Xi randomly decide to hug it out on X and eliminate tariffs? Zoomd might pop 50% overnight. But letâs be honestâthatâs a tail risk, not the base case.
Core Criteria Discussion
Good management - good pitch and believable - 2.5 â
They are growing on me. If you asked me in 2024 what I thought about Zoomdâs management I would say I donât know them. They are headquartered in Israel, meaning most communication with investors are done at earnings, and on video call (not in-person). Lately though I have noticed a growing trend - where management meets with investors, both share price and volume go up. Itâs a good endorsement for a company when investors speak with their wallets, buying shares after a discussion.
Good company - preferably growing and profitable - 4 â
Zoomd posted full year 2024 earnings of:
$54.5M USD (up 70%)
Gross Margin of 39% (up 2%)
Adjusted EBITDA $11.3M (up 564%)
Net income $8.9M (an increase of $13.6M from 2023 losses)
Operating cash flow $7.7M and new cash balance of $9.2M.
No real debt, and a respectable 99M shares.
âCheapâ - good ârisk verses rewardâ balance - 5 â
This is where Zoomd stands out. Up 11% as I write this article, and still only a $47M market cap company. Itâs trading at 5x earnings, while other junk on the stock market is trading at 5x sales. Yes, there is a chance Shein and other Chinese companies completely stop their US advertising, thatâs a risk. However, Zoomdâs share price arguably already has that risk priced in already, at a $47M market cap Zoomd is priced for declining growth in 2025. If USA-China come to an agreement on trade, or if Zoomd can diversify and grow revenue outside of the USA, then Zoomd is currently âstupidly cheapâ.
âSecretâ Knowledge - Inflection point or statement from management - 5 â
Huge opportunity here. How much do you trust management? Because there is potential that Zoomd is travelling all the way to Vegas with the intention of telling investors they are over-reacting, and that âprofitable growthâ is still on the menu for Zoomd in 2025. As a Canadian I am seeing more Shein ads than ever across all my platforms, and Zoomds overall revenue derived from US ads are probably less than most investors think. If management can convince investors that they can still get 15% growth or higher, then Zoomd can see a significant re-re-rate in share price.
Social proof - we donât want to admit it, but this matters - 0 â
I donât think social proof matters on Zoomd right now. Management needs to look investors in the eye and convince them Zoomds forward earnings arenât stuck on a Chinese shipping yard somewhere.
đľ Summary: The ultimate âpenny stockâ - with share price in 12-months going from $0.05 to $1.00 (making people wealthy) and then back to $0.40 (making people poor). What happens next is the HUGE question, because 2024 valuation means nothing if 2025 is a bad year. If Zoomd can start building some trust, and convince enough intelligent Planet Microcap investors that the âprofitable growthâ will continue, then Zoomd should be the #1 spot for this article. Very much a boom-or-bust stock right now, but share price has some downside built in. - 3.5 â
đŚ Recent Planet Microcap interview with CEO (YouTube LINK HERE)
Article Conclusion and Random Thoughts
What do you think âď¸
One thing I like about these five stocks is their diversity. From the different industry sectors (both growth and defensive), to their diversified revenue bases (both in USA and out) I think most investors can look at these five stocks and find one they like. High-growth with risk, low-growth with cash, or a new product and some dividends - whatever you want itâs here on this list.
Despite their differences and diversity, I think you can notice the similarities these companies have. All have excellent balance sheets. The five companies combined all have cash, are producing cash, and have almost zero debt. NTG Clarity has the most debt, but itâs also owned by the CEO (so stable with low interest). I would also suggest that all five of these companies have some form of (CANSLIM inspired) new product, or major inflection point. Whether thatâs McCoy Global introducing SmarTR to market, or Crexendo jumping in to grab customers from Microsoft, there is something to get excited about for these companies in 2025.
What we canât predict with much accuracy is how these companies perform in 2025, and thatâs not even largely directly due to the companies themselves, but mostly due to the major geopolitical tension from âglobal trade warsâ with friendly countries, to the recent 10,000% tariffs on China (or whatever the crazy high number is now). Itâs really hard to get a handle on whether 2025 gets a bounce back to ânormalâ later this year, or a recession.
I think the real advantage for investors going to Planet Microcap is companies already have a sense of their Q1 earnings, and they are the experts in their fields - to be able to tell investors what they think will happen to them (and their industry) in 2025 and beyond. Thatâs great information!
Disclaimer: I am personally a shareholder of all these stocks, with the exception of Crexendo which I plan on buying Monday. However I think you can see thatâs not why they made this list. I gave you the criteria for what stocks I will be selecting in this article âConvincing Investors to become Shareholdersâ and have been adhering to this criteria. I have no intention of selling or trading any of these stocks during the week of Planet Microcap, I am generally a âbuy and holdâ investor with the intention of holding a stock (as long as they continue to earn my money).
Seriously, this is NOT financial advice.
I mean it. None of this is financial adviceâI say it all the time, and I genuinely mean it. I donât know you. I donât know your experience level, risk tolerance, debt situation, or anything else about your financial position. So please, donât buy, sell, or hold a stock just because of my opinion in this article.
Iâve been wrong plenty of times, and I strongly encourage everyone to invest within their own capabilities and consult a financial advisor if needed.
Thank you! đ
