5 Small Cap Stock Opportunities in 2024

Last week’s news on the broader market sector saw $2.9 trillion wiped out from the stock market in just one day, and to begin the week the feeling of U.S. stocks fell sharply again on Monday as part of a global market sell-off centered around U.S. recession fears. So what does this then indicate about the small-cap environment both in 2024 and beyond, and do they historically perform well post recession?

In our latest Small Cap Sunday podcast we highlight five companies that first includes VCI Global Limited (NASDAQ: VCIG), a NASDAQ-listed AI tech company with a $25 million market cap, who is at the forefront of AI technology in Malaysia and Southeast Asia.

The advancement of AI was confirmed earlier this year by Malaysian Prime Minister Anwar Ibrahim, who announced on May 27 an allocation of 1 million MYR (220,000 USD) to the Malaysian National News Agency Centre for Excellence to organize courses and training relating to artificial intelligence (AI) for media practitioners, thus creating opportunity growth for companies like VCI Global Limited.

In addition to the AI industry, the US cannabis landscape is also generating increasing interest. Ayr Wellness (OTC: AYRWF) (CNSX: AYR), a US cannabis multi state operating company made strategic financial moves earlier this year by revamping its corporate debt and securing $50 million in additional debt financing. With operations in key growth states such as Florida, Ohio and Pennsylvania, along with upcoming regulatory changes, the company is positioned for significant growth in the cannabis industry.

We also provide insight on an up and coming company in the cybersecurity space called Plurilock Security Inc. (OTC: PLCKF) (TSXV: PLUR), who stood out to us for its government partnerships and revenue growth. With a market cap of $43 million, the British Columbia-based company has showed promising potential in the cybersecurity sector.

Another cannabis company we highlighted included Cannara Biotech (TSXV: LOVE), a Montreal-based vertically integrated company, with a market cap of $50 million. The company recently announced its latest earnings for Q3 2024, which included net revenue of $19.5 million, representing a 22.6% increase from the previous year.

In summary, these companies represent a diverse range of industries in the small-cap stock ecosystem as we explain which companies we like, and whether or not we would own them.