Finding Value in Small Cap Stocks | Philippe Hynes and Jimmy Connor
Jimmy Connor Apr 18, 2026 21:16
Summary
Quality small caps trading at wide valuation gaps to large caps offer asymmetric upside, Hynes argues.
The guest avoids mining and pure-play AI but likes AI infrastructure picks in data centers and electrical grids.
Hynes is buying Cineplex, IMAX, and Stingray as earnings streams less exposed to AI disruption.
Software heavyweights Microsoft and Oracle have sold off materially on AI fears, opening fresh research interest.
Jimmy Connor's takeaways
- Top takeaway The host says, as a consumer, the free ad-supported Stingray in-car model sounds more favorable than paying for Sirius XM.
- The host remarks that he only goes to theaters for blockbusters like Mission Impossible and otherwise watches films at home.
Philippe Hynes's takeaways
- Top takeaway The guest argues the valuation gap between large caps (well above long-term averages) and small caps (around long-term averages) is the widest he has seen, making small caps attractive now.
- The guest prefers mature sectors less exposed to AI disruption, naming cinema, music, and data-center infrastructure as his current areas of focus.
- The guest has not yet deployed capital in software names despite the multiple contraction, viewing AI disruption to software business models as still too uncertain to call.
- The guest's recent buys are concentrated in the cinema rebound: Cineplex (re-entered end of 2025), IMAX, and Stingray.
- The guest avoids precious metals mining, citing a lack of edge over specialists and the speculative, pre-revenue nature of small-cap miners.