Sunday, 24 November 2024
by BD Banks
Sick of reading about what markets will do once Trump gets in?
Me too!
Because let’s face it, no one really has a clue what he will do…or how markets will react.
That’s why I trust the charts more than my (or anyone’s) views on every bit of news that comes along.
The market will tell us when it’s time to trade. As long as you have a solid method for listening attentively, you’ll be ready whatever happens.
So, today, I’m going to throw a bone to the mad punters out there. If you’re someone who likes to chuck some money at a company that may or may not shoot to the moon…this is for you.
That said, even though it’s a punt and high risk, so never invest more than you can afford to lose, I believe it has the recipe for success.
Solid management with skin in the game. A large addressable market to go after with signs of success. Revenue growing strongly (80% annualised ARR growth over the last three years).
After copping a beating with the rest of the small cap sector over the past few years, they’ve lifted themselves off the canvas…and are now starting to see some steady buying pressure.
But…their cash outflow from operations over the last three years has hovered around negative $10m.
This is what makes it a punt. A calculated punt. But a punt nevertheless.
Therefore, it is a bit early stage for my Fat Tail Microcaps service, but I will certainly consider it as revenue grows.
There have been capital raisings that have weighed on the price and who knows, there may still be a few more coming.
But with a well-known founder who is steadily accumulating shares and a product with a solid ROI (Return on Investment) for prospective clients, they have a shot at growing something substantial.
So, if you have had enough of discussions about US 10-year bond yields…and the path of the US dollar…get stuck into today’s Closing Bell video below. I discuss a little stock that may have a big future.
If you want to find stocks like this, you need to understand the method that I use. I give you a crash course in my trading rules in the six lessons white paper. Check it out.
I’ve put together insights from my 30+ years of trading that will help you discover little stocks like the one shown in today’s video, before they blast higher.
I believe that the key to high returns in small caps, is knowing you can survive all market conditions. To do that you need a risk management process that handles immense volatility.
I put this into action in my service Retirement Trader.
You can learn more about my approach by clicking here to get access to 30 years of trading knowledge.
Regards,
Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
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