Alex Rasmussen
Long only

50% Upside For Wek's Difference Capital

One of my Top 5 Picks for 2014 was Michael Wekerle's Difference Capital (OTC:TNTHF) which recently graduated to the TSX from the TSX Venture Exchange and trades with the ticker DCF. I encourage you to read my summary of the investment thesis in that article before reviewing this deeper dive.

As with many micro cap opportunities the primary reason for what I perceive to be a mispricing is the lack of visibility for the company's cash flows, as well as a lack of liquidity due to no sell-side coverage. Additionally, the company is unique in being a merchant bank for late-stage technology firms in Canada, a country and stock market focused on resource companies. The three main tenets...

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