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Bauer hockey gloves are seen in this file photo.

RBC Dominion Securities has added seven new names to its Canadian small-cap conviction list – its favourite stocks with a market capitalization of less than $2-billion.

The shortlist, which was established at the start of this year, now totals 17 after the seven additions and a small handful of deletions were made in a fresh reshuffling this week.

Those scouring the small-cap sector looking for investment ideas may want to hear them out. For one thing, their crystal ball gazing is limited to the near future, which may appeal to investors with short timeframes. RBC is predicting these stocks will deliver strong returns over the next three- to six-month time horizon. It also favours stocks with clear near-term catalysts – both fundamentally and technically.

For another, their track record this year is pretty impressive. The small-cap conviction list rose 12.4 per cent on a total return basis in the first quarter of the year. That's almost double the performance of the S&P/TSX composite index of 6.5 per cent and well ahead of the small-cap index return of 7.9 per cent.

Just a word of caution: small-cap investing comes with higher risks, and investors should do their own research before executing on any recommendations from the Street.

Here are the seven additions to the conviction buy list, and a snapshot of RBC commentary on each. Price targets represent 12-month forecasts.

Bauer Performance Sports Ltd. (Rated "outperform" with an $18 price target)

"The recent acquisition of Easton Baseball/Softball is expected to drive the next leg of growth. Easton holds an about 28 per cent market share in diamond sports and BAU management sees opportunity to grow that through increased investment in customer connections (i.e., brand development), increased R&D spending, and potential geographic expansion.... BAU currently holds a market leading about 53 per cent share of the ice hockey equipment market and management expects to further increase its share."

Technically, "BAU continues to trend higher in both price and relative strength. The stock appears to be consolidating, volume is showing signs of accumulation, On-Balance Volume is trending higher, the stock is trading above both the 50– and 200-day moving averages, and relative strength appears poised to test all-time highs, all of which are technical positives. The stock appears technically attractive at current levels and we would accumulate at current levels in anticipation of further upside."

Calfrac Well Services Ltd. (Rated "outperform" with a $44 price target)

"Improving industry demand and high utilization through Q1 have laid the groundwork for potential pricing/margin gains in 2H14. We are increasingly confident in an improving North American pressure pumping market given the rise in Canadian licensing/drilling activity in the Deep Basin/NE BC through 2014-YTD, coupled with a strong U.S. business focused in the Marcellus/Utica plays, Eagleford, Bakken and Niobrara plays."

Technically, "CFW has recently re-accelerated to the upside, setting new three-year price highs. Weekly momentum is trending higher, the stock is trading above both the 50– and 200-day moving averages, and relative strength versus the TSX Smallcap Index has just re-accelerated to the upside, all of which are technical positives. We would prefer to accumulate the stock on any pullback, in anticipation of further upside."

Canam Group Inc. (Rated "outperform" with an $18 price target)

"We expect double-digit earnings growth through 2015 from volume growth driving operating leverage to EBITDA margin from a large fixed cost base. We expect continued moderate recovery in the U.S. economy as well as larger Canadian structural projects to drive volume growth over the next two years. We see CAM's debt leverage at a level that we expect now supports acquisition growth. We also see USD forex as a tailwind on CAM's 60 per cent of consolidated sales from the U.S., including its ability to gain margin upside from some Canadian production sold into US market. ...We expect continued moderate recovery in the U.S. economy as well as larger Canadian structural projects to drive volume growth over the next two years, and we expect larger contract announcements to act as positive catalysts along the way....We expect that CAM may look for complementary tuck – in acquisitions now that its balance sheet is at a comfortable 2.6x EBITDA and free cash flow is strong. We expect that tuck-in deals along business lines similar to CAM's would be viewed positively by the market."

Evertz Technologies Ltd. (Rated "outperform" with a $20 price target)

"Evertz is a technology leader in broadcast infrastructure and video distribution. End-market conditions remain challenging, although we believe that Evertz should continue to outperform industry growth as it enters adjacent markets and continues to gain share from traditional competitors. We expect continued revenue and earnings growth in coming years, supported by a solid order flow and backlog, continued market share gains, and growing momentum from recent product int roductions. Evertz has a strong cultural focus on R&D, which has positioned the company with class – leading technology in many key broadcast segments and positioned it for expansion into adjacent areas. Further more , Evertz has a st rong balance sheet and cas hflow, as well as a supportive dividend yield. ... Evertz has won several large contrac ts ($10MM+) in the last two years, driven by increasing complexity in broadcasting and strength of new product offerings."

Sandstorm Gold Ltd. (Rated "outperform" with a $9 price target)

"Sandstorm is a smaller royalty/streaming company with a growing portfolio of royalties and streams. With a strong balance sheet and improving free cash flow, Sandstorm is well positioned to take advantage of accretive royalty and/or streaming opportunities. By focusing on smaller opportunities typically overlooked by its larger peers, Sandstorm has been able to create long – term value for investors through accretive acquisitions. ... With expansions at Aurizona and Santa Elena expected to be completed by mid-year and the ramp-up of Bachelor Lake progressing well, Sandstorm offers an attractive growth profile with per-share sales expected to increase at a three-year compounded annual growth rate of 5 per cent through 2016. ... Unlike its producing peers, the royalty and streaming models provide Sandstorm with low and relatively fixed cost structure , which provides investors with greater certainty on all-in costs. This in turn provides greater dollar-for-dollar leverage than the company's producing peers. ... With a well-funded balance sheet and an undrawn credit facility of $100-million, we believe Sandstorm is well positioned to pursue accretive growth opportunities within the current market place, albeit at a measured pace."

Storm Resources Ltd. (Rated "outperform-speculative risk" with a price target of $6)

"Storm remains in the early innings of growth and remains one of our favourite small-cap names. Storm is backed by a top-tier team and has considerable experience in the Montney resource play. ... Storm's current management is consistent with the previous Storm franchises, which have delivered a long track record (over 15 years) of shareholder growth. The company commenced operations in August 2010 following the acquisition of Storm Exploration (SEO) by ARC Energy Trust (now ARC Resources) whereby shareholders received 0.33 shares of the newly formed Storm Resources as part of the consideration. Management controls about 15 per cent of SRX fully diluted outstanding shares. ... Following Montney success at Parkland with Storm Exploration (leading to the acquisition by ARC), SRX has accumulated 98,000 net acres of Montney rights at Umbach in NE BC. In 2014, the company will spend $66-million at Umbach, which includes the drilling of 10 net horizontal wells, and drilling results have been strong to date and progressively improving. ... While very early days on these lands , the longer – term valuation could be significant; in a blue sky scenario and with continued drilling success, we peg an undiscounted blue sky scenario at more than $10/share."

Western Forest Products Inc. (Rated "outperform" with a price target of $3.)

"We see EBITDA growing at a 16 per cent compounded annual growth rate over 2013-2016, largely due to relatively low-risk, high-return margin improvement projects; projects already completed have returned 30 per cent+, and the upcoming projects are expected to have returns of about 40 per cent. ... We view Western as best positioned among peers to weather a slowdown in China and/or a slower U.S. housing recovery as it generates about 50 per cent of its EBITDA from logs and its lumber mix is 75 per cent weighted toward specialty grades , which are much less volatile than commodity lumber (W. SPF). Whereas most commodity lumber producers typically consume 100 per cent of their logs, only 61 per cent of Western's logs are used at its mills for the production of lumber, with the remaining 39 per cent sold into North American and export log markets. ... We expect a multiple re-rating as the margin improvement projects are completed and share price liquidity continues to improve (as Brookfield continues to reduce its ownership interest). Western also has non-core assets worth about $130-140MM ($0.33 – 0.36/share), which we expect to be divested over the next three years."

These stocks were deleted from its conviction list:

Gran Tierra Energy Inc.;

Savanna Energy Services Corp.;

Sierra Wireless;

Western Energy Services Corp.

These stocks remain on the conviction list:

Donnycreek Energy Inc. (target $3.50);

Cargojet Inc. (target $26);

Gluskin Sheff + Associates (target $35);

International Forest Products Ltd. (target $19);

Manitok Energy Inc. (target $3.50);

Morguard Corp (target $145);

Parex Resources Inc. (target $12);

Platinum Group Metals (target $2);

Tricon Capital Group (target $10.50);

Uni-Select Inc. (target $36)

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