Kraken Robotics Inc.
Many defense departments have recently announced budget increases on the back of the Ukraine war. Even before these announcements, many nations were updating their naval capabilities. Following two NATO Navy deals won in 2020 and tests with the U.S. Navy, Kraken Robotics has established itself as underwater robotics leader.
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.
We understand that investors flee stocks when systematic risk prevails, and the current market meltdown has spared few microcap stocks. Kraken Robotics (TSXV:PNG, OTC: KRKNF), a Sophic Capital client, was no exception.
We hope that you, your family, and colleagues are doing well. Crises always create fear and stress, but somehow, someway, we manage to come out the other side mostly intact.