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Information on small cap stocks?

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LiL_JaSoN

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Hey guys, im 21yo. I had my first dip into shares when i was 15yo with the ASX game.

this is my first post, I regiestered on this site in 2009 (as you can see),

for the past year or so iv been studying forex, and lately went back into looking at shares which i am finding more interesting than forex.

I made a account with stock watch, and in the last few months iv had a growth of 14.44% ($7,223.170).

im intrested in short term trading and looking to buy my first property within the next year.

Lately iv started to incorporate candle stick analysis into my trading using incrediblecharts from my knowledge in forex

Im still very clueless into shares in terms of small companies and knowledge of what companies are out there. I'v been mainly trading the big companies/blue chips.. but want to start getting into the smaller companies as well.

Iv seen growth with these companies iv never heard of and wondering if there is any good resources out there to get announcements and news on these upcoming companies.

eg: LYC in the last 6months went from $0.50 to over $1.50.

EDIT: thanks to whoever change the topic title, thought id introduce myself aswell since this is my first post.
 

There is alot of info out there....for example.

Contango Microcap releases an Investment Commentary every quarter where they go over there biggest holdings and new additions to the portfolio...among other things.

http://www.contango.com.au/index.php?option=com_content&task=view&id=48&Itemid=64

For example there latest quarterly Investment Commentary.

http://www.contango.com.au/images/stories/ctn_qtr_1210.pdf

Orbis Funds are a successful investment group who also like to do a bit of commentary on there thinking and investments.

http://www.orbisfunds.com.au/smef/reports.aspx

For example there latest quarterly Investment Commentary.

http://www.orbisfunds.com.au/reports/SMEF-QuarterlyReport2010Q4.pdf

Good luck.
 
LiL_JaSoN said:
I've seen growth with these companies iv never heard of and wondering if there is any good resources out there to get announcements and news on these upcoming companies.
Click to expand...



Find publication: " Australian Small-Cap Investigator" and subscribe. It will suit you and stocks are very well researched.
 
Good Vibes said:
Find publication: " Australian Small-Cap Investigator" and subscribe. It will suit you and stocks are very well researched.
Click to expand...

I don't know why i bother thinking for myself i should just sign up (pay up) for a service and follow the leader.
 
So_Cynical said:
I don't know why i bother thinking for myself i should just sign up (pay up) for a service and follow the leader.
Click to expand...

i also thought the same thing... not really keen at the moment to pay for someone recommendation/service as im just still speculating the market and playing on a game account.

Anyway i had a look at those links you gave me... very helpful. thanks.
 
LiL_JaSoN said:
i also thought the same thing... not really keen at the moment to pay for someone recommendation/service as im just still speculating the market and playing on a game account.
Click to expand...

Ah that's the spirit Jason...the aim of this game is for you to take money from others (the market) not hand over your money to people selling advise and opinion.
 
i want to learn how to trade, not others telling me what to buy... im trying to break out of the bluechip market and look into small-cap shares, but looking where i can find resources, news, announcements etc about these stocks...

or am i better off focusing on the top100/200?

also has anyone had any success trading dividends?
 

You probably want this:

http://www.standardandpoors.com/ind...ries/en/us/?indexId=spausta300audff--p-au-s--


Staying within the small caps of the ASX300 means you can slosh around in some liquidity and avoiding the ASX100 means you aren't playing with the instos so there is usually less "back and fill" type action.

If you want to refine it further, take a look at the XSO and slice it up by sector. Pick the top 3 by relative sector performance, or your favorite 3, or whatever.

Famous US names like Charles Dow used to generally concentrate on the sectors in which the country had the highest productive economic activity. In his case it was the US Industrials at that time, if you wanted to apply the same thinking for contemporary Aus it would be energy, food and gold. These three sectors have plenty of small cap representation in the XSO.
 

this forum is a great start, or hot copper..

all small caps have websites, so when you find one you like, go to it and research, they all present their plans.. in detail.. and they post all their announcements and all quarterly and annual reports.. media and broker reports are also included in aussie company website unlike the usa where its rare

i like to pick a few sectors, get to know the commodity, then i focus on selected small caps on the exchange in that sector. then i research for a long time then enter.

one way is to keep watchlists going, then read all announcements and watch the charts, then gradually you become aware of the share to a point where you assess risk and size of investment.

enjoy it, many out in the forums can be real nasty, but the majority are on your side and want to offer assistance and insights.. probably 90% of posters are great on this forum, you always gets the real crackpots whom will dig at you personally and keep things off topic, or actually think they "know" it all, but you learn to ignore them , but all in all, aussie stock forum and Hotcopper (to a far lesser degree) are good to chat with fellow investors to and kick ideas around..

best of luck, and for all your answers, just mine through the forum threads with the search engines on this site.. or google google google..

all imho and dyor..
 
yup, already a member at hotcopper.

thanks guys..

look like i have alot more research to do.
 
So_Cynical said:
I don't know why i bother thinking for myself i should just sign up (pay up) for a service and follow the leader.
Click to expand...

Gee I'm sorry you guys are so down on ASI. As a beginner myself I have found the publication highly educational and more importantly it has taught me the discipline needed to trade successfully. And as I become more experienced I will be able to think better for myself. Sub was only $89 pa - not a lot of money in the scheme of things.
 

I wouldnt mind seeing the free trial, although you still have to register with them and then call up after the trial is over to get a refund...

i dont have any $ into the stock market yet, but i am thinking of putting some $ into a few bluechip shares to get my feet wet...
 
LiL_JaSoN said:
i dont have any $ into the stock market yet, but i am thinking of putting some $ into a few bluechip shares to get my feet wet...
Click to expand...
I'd recommend you have at look at Roger Montgomery and his valuations (youtube or his blog). It gives you a good start at how to roughly value companies, and to understand what makes a stock good to buy. Helped me.
 

Its the only way too learn imo ! I spent a long time reading and studying alot of investing techniques before making my first acquisitions, but my style is mostly contrarian value investing based off messers montgomery, buffet and graham.

Atm when i feel like looking up some small caps im doing most of it from the asx website, and searching by industry. Ive probably looked at over 100+ companies on there and only found 1 or 2 i would consider investing in personally.

But I think if your not comfortable starting with small cap, you are most definitly better off getting your feet wet with 'blue chip' first. Be just as careful though, blue chip or not you can still lose money, do a lot of research, and dont jump the gun.

good luck dude !
 
LiL_JaSoN said:
I wouldnt mind seeing the free trial... but i am thinking of putting some $ into a few blue chip shares to get my feet wet...
Click to expand...

Well, on the other hand, you may be satisfied with free trial and wish to continue.


In December I began investing with $500 plus brokerage fee. Now I have $3000 invested in small cap shares. My profits are small because I'm only investing small - but let's see where the real money making potential is.

e.g. $5000 invested in ABC blue chip @ $40 = 125 shares
$5000 invested in XYZ small cap @ $0.50 = 10,000 shares

Now what is the value of these shares if price increases by 0.100c

ABC blue chip = $5012.50
XYZ small cap = $6000.00

I rest my case.
 
That's a completely false premise. All you should be concerned about is not the dollar amount, but the percentage increase/decrease on your capital investment.

Don't think about how much per share you are outlaying, but rather the total capital amount. e.g. you are buying $10,000 worth of XYZ company or ABC company.
All you should be interested in is what percentage gain you have achieved at the end of a given period.

The actual dollar/cent value of any particular share is totally meaningless.

Until you get this clear you should not be 'resting your case'.
 

Julia the bottom line, upon which I rest my case, is percentage gain. My argument is based on the premise that the best small company shares trading on the ASX return much higher % gains than blue chips.
 
Small cAp Shares generally have more volitility than blue chips, but share price is irrelavent, except the steps as shares move is bigger steps for the lower priced shares.

Also I do see some negativity towards SKI. I am subscribed and for my $89 year contributes to research I am doing. It also gives me some buy and sells advice which is reflected in the price. I still do my own research and choose some of the recommendations and others from my own research. For $89 it is similar cost to Smart Investor Magazine and Trading Edge, also which I subscribe to. Not a lot of money in the scheme of things when compared to brokerage costs, let own gains made.

SKI last couple of recomendations are up 45% and 60%. Not a bad return on $89 year.

All the best and use stop losses on small caps, and enjoy the ride
 
Regarding ASI (Australian Small Caps Investor)

I joined up with ASI for exactly the same reason you would. Starting out and wanted abit of insight. I have found it very informative but not particularly beneficial in fiscal return. From my last four month subscription I am sitting negative based on the tips.

ASI is a part of Port Phillip Publishing who also publish articles from 3 other authors, all with their individual strategy. The other three deal with mining stocks, blue chips and technical analyses. All require a subscription fee. It is set up in a manner that each author issues you e-mails from time to time 'suggesting' you sign up with one of the other authors, so it is a little sneaky in that respect.

That said, I still recommend a subscription, it is cheap and I believe the general advise is very informative. I am also subscribed with the blue chip publishings mainly because I highly value the advise from the author, Dan Danneing, who's blogs I often read on the Daily Reckoning. One of the people I work with is signed up to the mining newsletters and the publications are proving to show good returns.

In summary, if you are a rookie investor, like me, I would recommend a sign up just to find your feet; NOT because you expect 421% gains in 4 months.

Forums are your best friend. Lurk and learn.

Also. Don't buy that property.
 
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