Difference Capital

Difference Capital

DCF

Last Updated On: June 1, 2018

Share Price On This Date: $3.20

An investment holding company specializing in small, public and private companies, many in the technology space.

Summary

This stock is a bit of a departure for me and, admittedly, is one of my smaller holdings. It started out as the plaything of Michael Wekerle (one of Canada's Dragon's Den dragons, for fans of the show). It was formed to make venture capital type investments in fintech, technology, internet, healthcare and media companies. They have stakes in MoGo financial, hootsuite, shop.ca and others. Normally, these are the kinds of companies that I avoid with a ten foot pole, not because they are bad companies but because they do not lend themselves to the kind of value oriented analysis I like to do. But I stumbled across Difference Capital a while back, trading at a significant discount to its supposed book value. That book value is based on the value that management paid for its portfolio of investments, adjusted for any more recent financing rounds. Unfortunately, these adjustments have mostly been downwards over the last couple of years, hence the steeply discounted share price. How much value is actually there, I don't know, but it offers a good way for a dyed in the wool value investor to get some exposure to the blockchain and other exciting new technologies without having to get my hands dirty buying this stuff directly.

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