3 very small cap stocks to buy before September


the S & P / TSX Composite Index was up eight points by early afternoon on August 20. However, the index was driven by information technology – the only sector in the green at the time of writing. Today I want to take a look at the top three small cap stocks worth snatching up before the start of September. Let’s dive in.

Why I am targeting this very small cap stock at the end of August

clumsy (TSX: GSY) is the first very small cap stock I want to focus on today. The company provides loans and other financial services to its customers in Canada. Its stock has managed to break even so far in 2020. Shares have jumped 39% in the past three months.

The company released its second quarter 2020 results on August 12. It was another exceptional quarter for goeasy as its loan portfolio grew 18% from a year ago to $ 1.13 billion. Adjusted diluted earnings per share climbed 50% year over year to $ 1.89. It achieved 1.1% total same-store revenue growth in the face of the COVID-19 pandemic. In addition, it has not suffered any reduction in its staff in this crisis.

Goeasy Last’s shares had a price / earnings (P / E) ratio of 12 and a price / book (P / B) of 2.8. This places it in attractive value territory relative to its industry peers. Better yet, it declared a quarterly dividend of $ 0.45 per share. This represents a yield of 2.6%.

This company is positioned for strong growth in the future

Park lawn (TSX: PLC) was my first choice of small cap stocks for the remainder of the year in April. The company offers death care products and services in Canada and the United States. Park Lawn shares are still down 2.4% in 2020 so far. However, the stock has climbed 33% in the past three months. It released its second quarter 2020 results on August 13.

During the year-to-date period, revenue increased to $ 158 million, compared to $ 108 million in the first six months of 2019. Adjusted net income increased to $ 8.7 million as of second quarter of 2020, up from $ 5.6 million the year before. At the same time, Adjusted EBITDA increased to $ 19 million, from $ 13 million in the second quarter of 2019.

Park Lawn shares still have a favorable P / B value of 1.5. It last announced a monthly dividend of $ 0.038 per share, which represents a modest return of 1.6%.

Don’t sleep on this small cap dividend paying stock

Automotive real estate REIT is an open-ended real estate investment trust that focuses on the ownership and acquisition of income-producing automobile dealership properties in Canada. The auto industry has been hit hard by the COVID-19 pandemic. However, in recent months, sales have managed to rebound as the economy reopens. This small-cap stock has nearly doubled from its March low, but still hasn’t fully recovered to pre-crash levels.

In the second quarter of 2020, Automotive Properties said it received around 99% of its expected contract base rent for July and August. In addition, the REIT continues to pay a monthly distribution of $ 0.067 per share. This represents a monster return of 8.1%.

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Foolish contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends AUTOMOTIVE PROPERTIES REIT.


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