BC Business
Two of our B.C.-based, small-cap stock picks really did go to the moon
The good times kept rolling for equity investors in 2024. Canada’s benchmark S&P/TSX Composite index rose 18.47 percent—21.65 percent if you factor in dividends.
Now comes the big boast: the 25 B.C.-based stocks we profiled in Pacific Trader last year collectively did three times as well, racking up an equal-weighted average annual gain of 60 percent. Full disclosure: the increase gets knocked down to 35.1 percent if you calculate it from the dates the profiles were published. Also, the results were turbocharged by two outstanding performers: D-Wave Quantum and Simply Better Brands Corp.
Burnaby-based D-Wave (NYSE:QBTS), you’ll remember, was a long-incubating and often hyped pioneer in the development of quantum computing before it was taken public with a special purpose acquisition company (SPAC) in 2022. By the time we took a look last June, the stock had seen some modest price appreciation. As late as November 1, though, it was still barely above US$1 a share.
Then Google and Amazon announced advancements in their quantum ventures and the U.S. Congress approved US$2.7 billion in funding for the sector, causing the handful of stocks specializing in the technology to spike. D-Wave closed a US$175-million stock offering of its own at an average price of US$4.81 per share on December 12. It finished the year at US$8.40. Expect volatility.
Early in the year investor VRG Capital led a refinancing and restructuring of Vancouver-based protein bar maker Simply Better Brands Corp. (TSXV:SBBC) that clipped operating expenses by 36 percent and staffing by two-thirds. That, combined with a 124 percent year-over-year jump in sales of its Trubar line, substantially brightened the former penny stock’s outlook.
Other noteworthies in our coverage universe included rag-trade retailer Aritzia (TSX:ATZ), which bounced back 94.3 percent from a miserable performance in 2023, Well Health Technologies (TSX:WELL, +80.5 percent) and Calibre Mining Corp. (TSX:CXB, +58.1 percent). And though chemical manufacturer Methanex Corp.’s full-year performance came in at a ho-hum 14.6 percent, we saw value on the table when its stock withered to just over $50 in September. In the 15 weeks since, it’s rebounded 43.3 percent.
Improving on these results may prove challenging in 2025, especially considering the markets’ high valuations from a historical perspective. But if there’s money to be made, we’ll be on the lookout.
D-Wave Quantum (+854.6%)
Simply Better Brands Corp. (+395.5%)
Aritzia (+94.3%)
Lithium Americas (Argentina) Corp. (-54.7%)
Conifex Timber (-40%)
Lululemon Athletica (-25.2%)
D-Wave Quantum (+624.1%)
Simply Better Brands Corp. (+172.5%)
Methanex Corp. (+43.3%)
Village Farms International (-35.8%)
Conifex Timber (-31.4%)
Lundin Mining Corp. (-17.5%)
Note: Returns for stocks denominated only in U.S. dollars (D-Wave, Lululemon, Village Farms) are calculated in U.S. dollars. All other returns calculated in Canadian dollars.