The Most Ignored Stocks in Canada — and Why That’s a Good Thing
In the Money with Amber Kanwar
Navigating the Small Cap Market Challenges
This chapter explores the decline of interest and capital in Canada's small cap sector since 2018, examining structural issues and the shift towards private equity. The conversation highlights investment opportunities in under-researched areas like technology and healthcare while analyzing specific companies like Thinkific and Tantalus Systems. Additionally, it discusses the impact of market dynamics, media, and the IPO landscape, emphasizing the need for active management in a volatile investment environment.
In this episode of In the Money with Amber Kanwar, we explore the often-overlooked world of small cap investing with David Barr, CEO of PenderFund. A seasoned investor since 2009, David explains why he remains committed to the space despite its volatility—and why it could be a hidden opportunity for patient investors.
He unpacks the regulatory and structural shifts that have drained capital from small caps, from tighter advisor rules to the rise of private equity, and explains how this has created a contrarian edge.
David also answers viewer questions on Thinkific (THNC), DentalCorp (DNTL), MDA Space (MDA), and Tantalus Systems (GRID), breaking down how each fits into his investment framework and what the market may be missing.
And of course, no episode would be complete without David’s Pro Picks — his top small cap stocks to watch right now. He spotlights Kraken Robotics (PNG), a company that went from treasure hunting tech to supplying sonar and underwater batteries for military and energy sectors; Dye & Durham (DND), a legal software firm caught in corporate drama but still generating serious free cash flow; and TerraVest (TVK), an under-the-radar industrial that’s grown into one of Canada’s best-performing stocks — and may still have room to double again.
Whether you're a small cap believer or just looking for smart investing ideas off the beaten path, this episode is packed with insights and analysis.
Timestamps
00:00 Show intro
01:50 Amber & David Barr discuss the challenging environment for small-caps
03:25 What’s the secret sauce of small-cap investing?
07:20 Why is the small-cap sector so starved?
10:00 Is there opportunity because there are so few small-cap investors? Is volatility opportunity?
12:30 Why David thinks small-cap investors have to understand the macro because it drives volatility
13:25 ITM Mailbag: What is Thinkific (THNC) in five years? Is it a scalable platform or a niche software business?
18:30 Will we see a round of IPOs? What’s in the pipeline?
19:20 What is David’s point of view on Lumine Group (LMN-TSX.V)?
21:45 What are David’s thoughts on Tantalus Systems (GRID-TSX)?
25:30 Does David traffic in quantum stocks?
27:05 David’s thoughts on aerospace company MDA Space (MDA-TSX)
29:10 Does David like dentalcorp (DNTL-TSX)?
31:30 David’s thoughts on goeasy (GSY-TSX)
33:40 David’s Pro Picks
44:30 Goodbye & coming up
Sponsors
This episode is sponsored by BMO InvestorLine. Learn how you can earn up to $3,500 cash back when you open a new account at bmo.com/onlineinvesting?ecid=pr-2886232INV1-JNBMO16
For over 25 years, Raymond James has been helping Canadians achieve their financial goals. Visit https://raymondjames.ca today to discover how you can live a life well planned.
Pro Picks is brought to you by ATB Financial. With $62 billion in assets, ATB Financial is powering possibilities for more than 820,000 financial services clients in Alberta and beyond. Visit https://ATB.com/inthemoney for more information
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The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice.The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
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In the Money delivers expert stock picks, market analysis, and timely investing insights. Hosted by business journalist Amber Kanwar, each episode features interviews with top portfolio managers and financial experts. Covering everything from ETFs and Canadian stocks to global investing trends, dividend strategies, and risk management, this show is made for DIY investors, stock market enthusiasts, and anyone looking to sharpen their financial strategy.
Contact: questions@inthemoneypod.com
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