It’s been a rough ride for Canadian small-cap growth stocks, and investors are looking for answers. Jordan Zinberg of Bedford Park Capital is back on In the Money with Amber Kanwar to break down what’s driving the selloff, where the fear is justified, and where the market is simply mispricing good businesses. Zinberg says it’s not just a selloff — it’s a moment where quality is out of style, sentiment is washed out, and solid businesses are being treated like broken ones. He notes small-cap growth stocks, his corner of the market, have been hurt particularly hard but believes it’s unjustified.
Pro Picks is brought to you by ATB Financial. With $62 billion in assets, ATB Financial is powering possibilities for more than 820,000 financial services clients in Alberta and beyond. ATB’s Capital Markets arm is a full-service investment dealer that offers investment and corporate banking, sales and trading, institutional research, and risk management. Visit www.ATB.com/inthemoney for more information.
#1: Propel Holdings PRL:TSX
- Propel has sold off for reasons largely unrelated to its fundamentals: the GoEasy short report created negative read-through, Canadian small-cap growth has been weak, and the company lowered Q4 loan-book guidance (25% → 18–22%) after tightening underwriting to protect margins.
- Despite that, Propel remains a top-tier growth story: a 14-year operating history, billions in loans issued, millions of customers, and a model that is fully online, data-driven, and diversified across the U.S., Canada, and a rapidly accelerating U.K. platform.
- Revenue has grown from ~$120M in 2021 to ~$600M today, the business continues to scale rapidly, and insiders own nearly half the company, creating strong alignment.
- Upside: Jordan Zinberg says on record he believes Propel is a $100 stock within 4–5 years, versus roughly $20 today — a potential 5x if the company continues delivering 30% annual growth while maintaining disciplined underwriting.
#2: Lumine Group (LMN:TSX)
- Lumine is the media and communications software group spun out of Constellation Software; while related, it focuses on larger carve-out deals from major telecom and tech players who trust Lumine to take over non-core divisions.
- Shares have dropped almost 60% in under two months with no clear business-specific issue — weakness in Constellation sentiment and a temporary lull in big M&A announcements seem to explain most of the move.
- Zinberg describes Lumine as a high-quality compounder with “Constellation-type DNA” and “Constellation-type financial metrics,” even if investor expectations have reset.
- Upside: Jordan Zinberg believes investors can make 20–30% per year on Lumine “for the foreseeable future,” positioning today’s levels as a potentially attractive long-term entry point.
#3: Zoomd Technologies (ZOMD:TSX-V)
- •Israeli adtech platform with major blue-chip clients — Amazon, Nike, Shein, the NBA, and McDonald’s — following a “land and expand” model where initial wins in one geography lead to broader global mandates.
- •After cleaning up legacy issues, revenue and profits have taken off: sales have climbed from below ~$70M to nearly $100M, with strong margins, limited history, and newly initiated analyst coverage (ATB).
- •Shares are tightly held, liquidity is thin, and adtech is cyclical — Zinberg positions it as an early-stage, high-quality growth idea best approached with starter sizing.
- Upside: As Zoomd grows its footprint with blue-chip brands and gradually gains broader Bay Street awareness, Zinberg sees the potential for multiyear compounding — but with the expectation of 20–30% pullbacks along the way.
Don’t miss our next episode with Bridgewater’s former head of research Bob Elliott! Send you macro questions to questions@inthemoneypod.com
DISCLAIMERS: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
