Helping you find diamonds in the rough…
How to Find Tiny Stocks With Big Profit Potential
Today, we’re unveiling an exciting strategy that targets small, under-the-radar stocks with long-term gain potential of +50%, +100%, and much more. Because our focus is on micro-cap stocks (those with a market cap of $1 billion or less), these stocks have amazing upside potential.
Right now, I would like to direct your attention to a special type of stock that gives new meaning to the term, “Aggressive Growth.”
Investing in the right micro-cap companies has its advantages. These tiny, smaller companies tend to be much more nimble and able to capitalize on emerging trends in the marketplace much faster than larger companies. Even better, this group of stocks tend have cheaper stock prices and thus able take off like a rocket when big institutional buyers start accumulating shares.
What If We . . .
- Only focus on stocks with home run potential?
- Aim for microcap stocks that are under-the-radar companies that had been ignored or show great growth potential?
- Isolate stocks that have made it through our five-stock point inspection so we have companies with a great chance to start off with a bang?
- Monitor these stocks daily to guard against striking out if something goes wrong?
- Create a diverse portfolio of 20 tiny gem stocks to further diminish risk?
- Ride these stocks for 12 to 18 months to maximize profits?
Introducing the Tiny Gems Portfolio Service!
How to Crush the Market with Micro Cap Stocks
Since I began investing almost 20 years ago, I have seen my share of investment fads come and go. I personally have tested hundreds of investment ideas over the years and very few catch my attention anymore because I have seen what works and what doesn’t work.
When I formulated the strategy for the Tiny Gems Portfolio, I developed a strategy for aggresive investors looking to maximize their profits without sacrificing their values. The strategy we use for this portfolio is designed to maximize profits. We do this by combining a series of screening metrics to find companies with strong relative strength. This helps us find micro cap stocks that can crush the market.
In order to beat the markets I follow these three rules:
Rule #1: I only use small explosive stocks that have a market capitalization under $500 Million (micro cap stocks)
There are over 60,000 actively traded stocks on the market, and I know there are some great companies that are much larger, but I want small and nimble stocks that can increase 50%, 100% or more quickly. By looking at this specific area, I am able to narrow a huge universe down to about 100-200 companies worth a closer look. Each investment in this universe has already been researched and made it through our financial and moral screens. This valuable filter helps make sure I have only the best stocks in the market.
Rule #2: I only select stocks with high relative strength (RS).
According to Investopedia, relative strength investing is:
“A momentum investing technique that compares the performance of a stock, exchange-traded fund or mutual fund to that of the overall market. Relative strength calculates which investments are the strongest performers, compared to the overall market, and recommends those investments for purchase. Relative strength is a “buy high, sell higher” strategy that assumes a stock whose price has been rising will continue its upward trajectory.”
In plain English, this means we look for stocks with an RS of at least 75. This means the stock has outperformed 75% of all other investments during the past 6 months, and we expect that trend to continue. We also look for stocks with low price-to-earnings (P/E) and PEG ratios to make sure we aren’t paying too much for growth. So bottom line, we are looking for micro cap, high momentum stocks that are reasonably priced.
Rule #3: I only select stocks with increasing Free Cash Flow (FCF).
Enron, WorldCom, and other great collapses have shown us that profits and earnings can be manipulated. However, cash flow (money coming in and out of a company) tells the true story of what’s really going on. This is the very pulse of EVERY single company.
Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. It is the money used for research and development, acquisitions, expansion, and the money used to reward investors through share buybacks and dividend payments.
In finding the right micro cap stocks I look for those with low Price-to-Cash Flow (P/CF) ratios and an increasing trend of Free Cash Flow (FCF). This helps me find stocks that have the potential to grow earnings, further reward shareholders, and best yet – outperform the market!
The Tiny Gems Portfolio holds only our top 20 ranked micro cap stocks.
When a stock comes along that ranks higher than one of my top 20, I replace my lowest ranked stock with a higher ranked stock. This ensures my micro cap strategy always has the best shot at outperforming the market whether we are in a good or bad market.
1. An effective strategy that is easy to follow.
We have been beating the market the past six years using the same strategy with other market caps (large, mid, and small cap stocks) and have no reason to believe our success will not continue as we find strong micro cap stocks with great upside potential. We send trade alerts whenever we buy or sell and send along a monthly update making it easy for you to implement.
2. We do the research for you.
My job is to bring you the very best micro cap stock ideas each month. We bring new ideas as they come along and best yet, I do all the homework for you. I roll up my sleeves and thoroughly analyze each and every pick before it makes its way to our highly valuable Tiny Gems Buy List.
3. It is risk-free.
Try our service for 30 days. If it is not what you expected or for any other reason, just call or write, and we will refund every penny you paid. After 30 days, we will credit back your pro-rated balance. We are confident you will absolutely love our Tiny Gems Portfolio Service, and we stand behind our offer!
As a member of the Tiny Gems Portfolio, you’ll receive:
- Best Buys Now! – The hottest micro cap stocks on our buy list right now. We tell you the top 5 stocks to buy right now so you can get your money to work immediately.
- Target Buy and Sell Prices – “buy up to” prices and “target sell” prices so you’ll know exactly where to get in and out. We typically hold around 20 stocks.
- Monthly Newsletter and Updates – Once per month, you will receive a comprehensive newsletter and update where I highlight new stock picks in depth and provide commentary and an update on the current holdings.
- Trade Alerts – Any time we buy or sell a stock in the portfolio, you will receive a special email trade alert so you’ll know what’s happening in the portfolio and what actions you need to take in order to follow along.
- 24/7 Website Access – You will have your own username and password to log into our Tiny Gems Portfolio via our website. Access available after 3-1-15.
STOP LOSING MONEY IN THE MARKETS!
GET TINY STOCKS WITH HUGE PROFIT POTENTIAL
One Year for just $49!
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