Stockhouse Ticker Trax
is published to subscribers every Monday (annual cost only $195
). We focus on best-in-class high growth
small companies trading on the TSX and TSX.V between 5 cents and $3 with a market cap below $300 million.
Equity Analyst Danny Deadlock has 30 years of experience speculating on Canadian penny stocks and targets capital gain opportunities and diversification in metals and minerals exploration, energy, and technology.
For the experienced investor, Ticker Trax provides an extra set of eyes and ears (idea generation) and for those learning to invest in micro cap stocks, we provide stock picks and market education.
; (1) new research (stock picks) weeks in advance of being featured on this weekend column (2) exclusive
access to our list of junior gold exploration companies (critical for peer valuation), (3) exclusive
access to our list of Cash Rich micro cap companies (our Virtual Vulture Fund) which contains 80 companies with almost $3 Billion.
Both tables are updated monthly.
DON'T ALWAYS JUDGE A BOOK BY ITS SHARE PRICE
Empire Industries Ltd.
, Stock Forum
) (18 cents)
180% Gain in 8 months (as high as 220%)
Industry: Entertainment (amusement parks), steel fabrication, oil & gas service
EIL was featured to paid Ticker Trax subscribers at 6.5 cents in August 2013 but I also released it to free readers in this weekend column at 7.5 cents on September 15, 2013 - that original 9 page report is available here entitled “Anything You Can Dream - We Can Build”
Typically any microcap or penny stock trading below 10 cents needs to be viewed with a HUGE amount of skepticism.
However, there are situations where these companies have briefly fallen on hard times (or they are a victim of the overall market) and if you can catch the point of turnaround, they can produce exceptionally strong gains - even in a very weak market.
I am not endorsing EIL at this stage but simply demonstrating where these small companies if carefully researched, can produce remarkable gains even during periods when investors are shunning them. If you go back and read my original report, it will be easier to understand where the opportunity was clearly there.
Most investors write these microcap stocks off simply because of share price perception. More often than not, the market for these small companies is wrong - and that goes both ways (oversold and overbought).
The Chart Below is of the TSX Venture Composite Index (the benchmark for the higher quality stocks on the TSX.V)
Small stocks on the TSX Venture have suffered for three years now and in 2013 there were two brutally pessimistic lows – late June and mid December.
These were followed by decent recoveries - Q1/14 being exceptionally strong for many small companies.
I track more than 200 microcap companies on the TSX and the TSX Venture and I am currently seeing those same levels of pessimism and despair.
Although the TSX.V chart above does not reflect this, the current mood is not much different than June 2013.
While a turnaround may not necessarily be around the corner this summer, odds are favoring a recovery soon - and that may mean this is an exceptional buying opportunity for the better quality microcap stocks.
** TWITTER NOTE: I maintain a twitter page at - twitter.com/tsxalerts