After a strong start, 2021 obliterated Canadian sub-$100 million market cap stocks. As of November 30, the median stock in this group was trading at only ~38% of its 52-week highs.
Not down 38% – DOWN 62%!
As Jeff Bezos said over 20 years ago:
“The stock is not the company. And the company is not the stock.”
The same is true for THIS list of Canadian micro- and small cap names that have been pounded by 2021 tax loss selling.
The Human Resources / Staffing industry is ripe for consolidation. Sophic Capital client HIRE Technologies closed three acquisitions in the back half of 2020, and its funnel is growing.
Much of the HR staffing/consulting industry has been slow to adopt SaaS solutions. It is an industry ripe for technology disruption and consolidation. HIRE Technologies, a company focused on modernizing and digitizing human resources solutions, has been active on M&A. HIRE has the foundation to build several, HR-relevant, value-added solutions that it can upsell to its existing customer relationships.
COVID-19 economic recovery plans will likely include government stimulus programs targeted towards re-employing millions of affected workers across the United States and Canada.
To handle this impending surge in demand, the staffing industry will have to rely more heavily on technology driven solutions. Sophic Capital client HIRE Technologies is well positioned to capitalize on these staffing trends.