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Is Adcore an Attractive Canadian Tech Micro Cap Stock?

Those looking for the next up and coming tech Canadian penny stock for 2021 start with ADCORE (TSX:ADCO.TO). This robust company employs over fifty people in their headquarters in Tel Aviv, Israel and satellite offices in Melbourne, Australia, Toronto, Winnipeg Hong Kong and Shanghai.

What does ADCORE Do?

Taken directly from their website, ADCORE states their main services as:

Adcore Views: ADCORE Views’ machine-learning bidding algorithms allow you to set target ROAS and CPA goals to your campaigns with a click of a button. Our algorithms are trained to work with minimal amount of conversions and are effective for any campaign size. Unlike Google, you can fine tune our algorithms to fit your specific needs.

Feeditor: Optimizing any data feed becomes an easy task – with over 50 different build-in editing functions and filters. Create new versions of your feed or edit existing data and watch it change in real time. Easily categorize products according to each channel specification and quality guidelines.

SEMDOC: Generate a real-time account analysis in less than 30 seconds and view the results in one eye-catching dashboard.
Discover critical account errors and growth opportunities with over 52 key account and campaign metrics such as AI Readiness, Segment Coverage and Spend Efficiency which have been formulated to ensure you achieve superior performance.

Effortless Marketing: Effortless Marketing® makes it easy to promote your products on Google, Facebook & Microsoft and target shoppers searching for your products

All information obtained from the ADCORE website.

As you can probably tell, all of their services are geared towards optimizing online sales and advertisement. This adtech industry is booming right now and companies like apple, google and facebook all recently posted massive growth in digital marketing. However, this is just the start of a massive shift in advertisement moving forward, and this industry still has plenty of room to grow. For a penny stock, ADCORE already has positive EBITDA, Operational cash flow, FCF, and no debt on their balance sheet. At the time of writing, they trade for $1.43 CAD.

What do we like about this Stock?

Lot float with high insider ownership.

Unique technology and growing consumer base

A recent prospectus filed may mean a future acquisition

We also love their impressive last quarter numbers

  • Quarterly revenue grew by 219%. Up to $13.3 million compared to $4.2 million in the fourth quarter of 2019 and grew 224% sequentially compared to third quarter 2020 revenue.
  • As of December 31, 2020, the Company’s cash and cash equivalents were $11.7 million, compared to $4.9 million at December 31, 2019, an increase of $6.8 million or 138%

Adcore is currently growing at a fast rate of their own. They also have plenty of room to work with both in the industry and with their current cash pile. This company seems to have everything going for it, so why isn’t it mooning?

The Cons of Holding Adcore?

While Adcore is a promising buisness, it currently does not have any volume behind it. The company has done a poor job of promoting the company and by extension, the stock. As of right now it currently trades around 50,000 shares a day, which is a measly amount in the grand scheme of the stock market. The biggest con with holding adcore is that you will likely have poor returns in the short run.

However, there is something to be said about getting in on something early. That is why I love micro caps. Adcore’s earnings will be released at the end of this month and I suggest anyone who reads this to add them to the watchlist. This industry has not slowed down and Adcore will greatly benefit from that. Look for their best ever Q1 and their best ever financial year once we get there.

Our Final Thoughts on ADCORE (TSXV:ADCO)

With Canadaian micro cap stocks it’s always great to identify an upcoming catalsy. ADCORE (TSXV:ADCO) has its earnings coming out in May, and its annual investor meeting in June. Both of these should contain more recent financial numbers as well as news on project developments or stock uplistings. For those who enjoys micro cap stocks on the TSX, this is one that needs to be on your watchlist.

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