Pro Picks: 3 Small-Caps with Big Potential
Top ideas from Jordan Zinberg of Bedford Park Capital
Watch Pro Picks: Three small caps with big potential
I sat down with Jordan Zinberg of Bedford Park Capital for the latest edition of In the Money with Amber Kanwar. He shared his knack for big returns from a small corner of the market—his fund soared nearly 60% last year. He unveiled his top three investing ideas—Propel Holdings, Source Energy Services, and Main Street Equity—each packed with serious upside potential.
1. Propel Holdings (PRL)
What It Is: An online consumer lending platform, primarily U.S.-focused with smaller Canadian (Fora) and new U.K. operations, built on 13 years of in-house tech.
Why He Likes It: A winner since its 2021 IPO at $9.75/share, with “spectacular” Q4 earnings, 30% ROE guidance, and a cheap six times earnings valuation despite a drop from $43/share to $23/share, plus six dividend hikes in four quarters.
Upside He Sees: At $23/share with $4 EPS, 30%+ annual growth could hit $10 EPS in 3-4 years; a 10x multiple makes it a $100/share stock—a 4x return from here.
2. Source Energy Services (SHLE)
What It Is: A leading Canadian frack sand provider, mining in the U.S. and Canada, supplying major E&Ps with a $30M market cap and $100M EBITDA when discovered.
Why He Likes It: Bought at $1.60/share, it soared to $16/share as 2022 contract renewals doubled prices. Q4 was soft and the stock dipped to $10/share. Jordan says a strong Q1, buybacks, and a Trican JV signal resilience.
Upside He Sees: Could top $30 (3x from $10) if valued like U.S. Silica (acquired by Apollo), with takeover potential boosting its high-reward outlook.
3. Main Street Equity (MEQ)
What It Is: A Western Canadian apartment operator (not a REIT), growing from 200 to 20,000 units over 20 years without raising equity, focused on no-rent-control markets.
Why He Likes It: Stock rose from $1/share to $185/share on the back of steady rent hikes. Has been able to raise rents 10% on turnover and only has 3% vacancy. Trading at $183-$185/share vs. $253/share net asset value, it’s a “steady Eddie” with a CEO owning half, never selling.
Upside He Sees: Beyond $253/share NAV (37%+ from $185), condo conversions, land sales/JVs, and unit additions could add “material” value over 5-10 years—potentially massive.
Don’t miss Dan Rohinton of iA Global Asset Management on the next episode! Submit your questions here or email us at questions@inthemoneypod.com
