Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

49 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

Fast-growing small caps at a super-cheap price
nipper
post Posted: Jun 23 2019, 03:40 PM
  Quote Post


Posts: 5,865
Thanks: 2125


QUOTE
Smaller cap stocks have in aggregate proven to be higher risk and lower reward. This argues against using an index fund. Instead, investors should be selective in what they buy, and just as importantly, what they don’t.

Investors can upend the historical risk-reward proposition by focusing only on high quality companies that have proven and profitable businesses. This will limit risk, and together with growth, also provides the upside.

It means ignoring the siren song of concept stocks and fads. They might capture the imagination with the small chance of a spectacular return, but will on average disappoint....

Julian Beaumont is the investment director of Bennelong Australian Equity Partners
QUOTE
.....Within equities it is almost universally accepted that smaller cap stocks offer better returns. This idea first took hold in the early 1980s when academics in the US identified what they called the small-cap premium.

As investors sought to take advantage, they traded away the excess return opportunity, and US small caps have underperformed since.

Aussie small caps have underperformed too, by an average of approximately 1 per cent per annum versus large caps since the early 1980s.

In the bull market of the past 10 years, the S&P/ASX 100 index returned 10.3 per cent per annum, while the Small Ordinaries returned 6.5 per cent, and smaller still, the Emerging Companies index returned just 4.2 per cent.

Smaller cap stocks thus underperformed and indeed underwhelmed. And yet, on almost any measure, they entail greater risk.

A fundamental principle of finance is the risk-reward trade-off. which means that if you want a higher return, you need to take on more risk. Thus, generally junk bonds yield more than highly-rated credit, and equities return more than bonds.

Why bother with small caps?
The dispersion of individual stock returns is far greater in the case of small caps. And herein lies the opportunity.

First and foremost, there’s a lot more variety of investment propositions. This includes risk profiles, business models, industry exposures, stage-of-life, corporate governance and management quality.

Most presume smaller cap stocks are lower-quality, and that is admittedly true as a generalisation. After all, there is good reason why small caps in aggregate underwhelm.

On the other hand, there are in fact some very high quality small cap companies that are global leaders in their field.

For example, Audinate’s software has become the global industry standard in digital audio-visual communication networks, and its future is underpinned by the inevitable transition from the old analog solution.

Likewise, Nearmap has the leading technology in its niche market of aerial imagery, which it is using to disrupt and thereby penetrate a large existing market, as well as open up new sub-markets.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: kiril  
 
Nopoo
post Posted: Apr 18 2019, 08:01 AM
  Quote Post


Posts: 120
Thanks: 4


Comprehensive Research “Maintaining Our Buy Rating and a C$ 0.45 Per Share Target Price”

"Major Gold Companies Actively Scouting
The Guiana Shield"

"Major Shareholder Zijin Funds to Participate
in Equity Financing of 2019 Drill-Program"

"An Iron Formation Hosted Gold Deposit"

"Multiple New Gold Discoveries
At Toucan Ridge"

"Implications of The Toucan Ridge Discovery at Marudi"

"Airborne Geophysics Survey Report Identifies
Several Areas of Interest"


https://comprehensiveresearch.ca/articles/g...arterly-update/

https://www.guyanagoldstrike.com/




--------------------
Nopoo
 
nipper
post Posted: Apr 17 2019, 09:44 AM
  Quote Post


Posts: 5,865
Thanks: 2125


QUOTE
Tenth Annual Small and Mid-Cap Conference:
Key takeaways - 16 April 2019

We recently hosted 42 companies and about 150 investors at our Tenth Annual Emerging Leaders Conference on April 3/4. Key themes:

Most companies that presented are generating above market growth driven by organic and in-organic means. Strong organic growers include IMF, CCX, SM1, CAT, NEA; acquisition driven growth companies include IPH, INA, TGR. Most of the companies are also not as reliant on economic growth or the macro environment to deliver their targets.

We heard about companies driving disruption in: wealth management platforms (BVS, HUB, NWL); Structural change driving growth in over 55s manufactured housing (INA), disruptive technology/software (ELO, Z1P), innovative products and services (NEA, FZO, HSN, MP1, NXT, BUB, CAT).

Best attended presentations in terms of number of investors: CCP, CCX, EHL, SIQ, SSM and Z1P.
Goldman Sachs



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: balance  
 
nipper
post Posted: Jan 30 2019, 01:31 PM
  Quote Post


Posts: 5,865
Thanks: 2125


In Reply To: nipper's post @ Jan 30 2019, 12:01 PM

Including Costa Group CGC, Fleetwood FWD, VillaWorld VLW, a slew of childcare companies, G8 GEM, Think TNK, Mayfield MFD plus Red Hill Education RHD, PMP group PMP, concrete hopeful Eden EDE, and Xtek XTE



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 30 2019, 12:01 PM
  Quote Post


Posts: 5,865
Thanks: 2125


Some beaten up small caps discussed here:
https://www.sharecafe.com.au/2019/01/23/poi...t-rock-in-2019/



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: henrietta  triage  
 
Nopoo
post Posted: May 9 2017, 04:52 AM
  Quote Post


Posts: 120
Thanks: 4


"The best place to find a new gold mine is next to an existing gold mine"


https://www.youtube.com/watch?v=Z1p40mmBTyU


www.aldershotresources.com




--------------------
Nopoo
 


Nopoo
post Posted: Apr 29 2017, 12:15 AM
  Quote Post


Posts: 120
Thanks: 4


$NSX.V $NXXGF Nexus Gold Receives New Long Term Work Permit on 2nd Gold Project Bouboulou



http://tsxpennystocks.ca/mining/news/341-n...oject-bouboulou




--------------------
Nopoo
 
Nopoo
post Posted: Apr 5 2017, 12:27 AM
  Quote Post


Posts: 120
Thanks: 4


$ALZ.V $ALZTF - Aldershot Resources - Reported High Grade Gold 82.5 g/t

Haultain Gold Project & Gowganda Property - 2017

YouTube Project Video

https://youtu.be/kdMhBguH794




--------------------
Nopoo
 
nipper
post Posted: Nov 23 2016, 07:47 AM
  Quote Post


Posts: 5,865
Thanks: 2125


a good 'view' on the sector.

Leah Zell on Small Cap Investing

https://www.livewiremarkets.com/feeds/latest?welcome=true



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  grevillia  
 
Nopoo
post Posted: Oct 20 2016, 02:06 PM
  Quote Post


Posts: 120
Thanks: 4


$LAG.C Laguna Blends Signs NFL Champion Marvin Washington

http://www.celebstoner.com/sports/sporting...ical-marijuana/



--------------------
Nopoo
 
 


49 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING