We Just Delivered on Our Promise
- 1000%-plus gains
- One week to go
- Name that boat
We’ve worked on a bunch of exciting projects over the past 18 months. The launch of the Options Trader service is one of them.
(Remember that the special 43% discount and six-month trial offer for Options Trader closes at midnight tomorrow. For details, go here.)
Aside from that, the biggest thrill of 2015 was launching the Microcap Trader service. It’s different to most of our other services in that we have to strictly limit the number of subscribers.
We can only accept a maximum of 500 annual subscribers. That’s for a couple of reason. One reason is the highly speculative nature of the stock picks (the high price for the service explains that too).
The second reason is that most of the stocks recommended are so illiquid that we have to make sure there aren’t too many investors rushing in to buy them.
If we didn’t put that limitation on the service, we just wouldn’t be able to recommend the teeny-tiny stocks that we do in the Microcap Trader service.
For instance, one stock that we recommended last June had a market cap of just $19 million, and shares traded for just 2.5 cents. And at the time, it traded an average of just $199,000-worth of shares each day.
We couldn’t have recommended that stock in any of our other investment advisories. If we had, the share price would have exploded higher and we would have had a bunch of angry subscribers.
So we could only recommend it in the premium and limited subscriber service, Microcap Trader.
But speculating on the teeniest-tiniest stocks wasn’t the extent of what we offered with Microcap Trader. A ‘normal’ investor wouldn’t typically touch these stocks. There’s only one reason to speculate on miniature stocks like these — the potential for mind-blowing gains.
I’m not talking about a 50% gain in a fortnight, or 100% gain in two months. Or even a 300% gain in a year. Although, granted, all of those would be nice.
My aim with Microcap Trader was to help investors find stocks that could achieve fabled gains of 1,000% or more in as quick a time as possible.
Many folks said that it was a ridiculous premise. That while historically some stocks have achieved such gains, no sane investor would ever stick around for gains that big — they’d sell out long before.
Well, I have good news to report. Last night I sent a note to Microcap Trader subscribers, telling them to take a quadruple-digit percentage gain on the stock I tipped last June.
As I say, this time last year, the company had a market capitalisation of $19 million and traded for just 2.5 cents. Well, today it has a market cap of $300 million, and this morning, Microcap Trader subscribers could have sold at prices north of 30 cents.
And as you’d expect, given the increased exposure for this stock among investors, the average dollar volume has increased too. It now trades at four-times the volume, with an average of $442,000-worth of shares changing hands each day.
I won’t reveal the name of the stock today, as there may still be some Microcap Trader subscribers who are yet to read our alert. I’ll happily reveal more details next week.
But all up, punters who backed this pick could have pocketed a 1,160% gain by buying when we said, and then selling when we said. Of course, that doesn’t include transaction costs or tax liabilities.
And that wasn’t the only good news for Microcap Trader subscribers. I also recommended that they sell up to half their position in a stock we tipped just two months ago.
That one hasn’t performed quite as well — yet. It’s ‘only’ up 203% in that time. I like to tell subscribers to take up to half off the table as it means what they have remaining in the market should be pure profits.
I gave the same advice with the quadruple-digit gainer. Last September I told subscribers to take up to half in profits, when the stock was up 192% from the initial entry price.
It’s worth doing. Sure, you can make more by not selling, but you can lose more if you don’t.
A good example is a stock that was up nearly 200% for us last year, but with which I didn’t tell subscribers to take profits. The result? In the same email yesterday, I told subscribers to cut their losses for a 46% loss.
That’s the thing with microcaps. You’ve got to know the risks. Microcap punters know that stocks can be volatile. One happy subscriber emailed me today, admitting that he’s a bit of a ‘gambler’ when it comes to stocks.
That’s fine. Each investor and speculator needs to approach the market in a way that suits him or her best.
And even though I love (make that, LOVE) tiny stocks, and even though I know they are speculations, that doesn’t mean you should ignore some common sense investing principles.
The biggest of those principles is something you likely won’t read in any investment book. It’s this: DON’T BE GREEDY.
If after all that, you’re wondering how you can join the Microcap Trader service, the answer is that you can’t. Not yet anyway. As I say, we have to limit the subscriber levels due to the illiquidity of the positions.
But in the coming months, a bunch of the original subscribers will be due to renew their membership. Even with a big quadruple-digit percentage winner, I know that a certain percentage of the subscriber base won’t renew.
They’ll have their reasons. One of which is the cost of the service. It’s not cheap. Some may figure that it’s just not for them, or that they’ve had a good run of luck that they can’t repeat, or there must even be some folks who have missed out on our best performing picks.
After all, not every stock we’ve picked has gone up. In fact, of the 15 open ASX positions (including the trade we closed today), only seven are in the black. Eight are in the red.
In truth, that’s to be expected. These are high risk plays. The point is, you don’t need every stock to be a winner. If we can break even (on average) on four out of every five picks, but then bag a triple or quadruple-digit percentage win on the other, I’m certain speculators will do fabulously well.
So, when can you join Microcap Trader? We’ll keep you posted, but as soon as we know how many spots are available after the renewal period over the next few weeks, we’ll begin to send out invitations to join.
Overnight, the Dow Jones Industrial Average gained 106 points, or 0.6%.
The S&P 500 index climbed 0.7%.
In Europe, the Euro Stox 50 index added 0.3%, as did the French CAC 40 index.
The FTSE 100 index closed up 0.2%, while Germany’s DAX 0.7%.
In Asian markets, the Nikkei 225 index is up 612 points, or 3.8%. China’s Shanghai Composite is down 0.1%.
In Australia, the S&P/ASX 200 index is up 51 points, or 1%.
On the commodities markets, West Texas Intermediate crude oil is trading for US$39.98 per barrel. Gold is trading for US$1,232 per ounce.
The Aussie dollar is worth 77.96 US cents.
One week to go
Speaking of exciting projects, a project I never thought would see the light of day is just over a week away from launching.
It’s a project involving Phil Anderson and the Cycles, Trends & Forecasts team.
Ever since Phil began working with Port Phillip Publishing in 2013, we’ve tried to find a way of combining his unique approach to interpreting and predicting economic cycles, with a way to use that approach to buy and sell stocks.
The result is a brand new trading service operated by Callum Newman and Terence Duffy, under the close supervision of Phillip J Anderson.
If you subscribe to Cycles, Trends & Forecasts, you’ll know what I mean when I mention economic cycles. If you don’t subscribe to Cycles, Trends & Forecasts, you can find out more about the service here.
So, how will the new service be different to what the Cycles, Trends & Forecasts team currently offer? The simple way to answer that is to say that while Cycles, Trends & Forecasts provides the big picture analysis of what’s going on in the economy, the new trading service will provide actionable stock recommendations.
This is the service that Phil’s devotees have demanded for the past 20 years or more. And now, thanks to the full resources of Port Phillip Publishing that we have put behind this project, we’re just within days of launch.
The good news for Cycles, Trends & Forecast subscribers is that they’ll get to see the service first, before any Port Phillip Publishing subscriber.
To join Cycles, Trends & Forecasts, and see the team’s new project before anyone else, go here. Of course, subscribing to Cycles, Trends & Forecasts is worth the small subscription fee alone. But the opportunity to get in on Phil, Callum, and Terence’s new project from day one, makes it an even more valuable proposition.
Name that boat
‘Britain’s Natural Environment Research Council got a brand spanking new ship, but was struggling to come up with an official title for $370 million vessel.
‘So, what do you do when trying to name for Britain’s largest and most advanced polar research vessel?
‘Turn to the citizens of the internet, of course.
‘The council was hoping to be flooded with names honouring researchers and explorers after asking for “inspirational” entries within environmental and polar science.
‘What they were met with was possibly the greatest name ever for a state-of-the-art vessel.
‘After winning an internet poll with 124,109 votes — more than three times its closest contender — the council’s newest vessel was dubbed “RRS Boaty McBoatface”.’
Immature? Yes. But still, very funny.
End of day market data
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52-week highs: 47 stocks, including Pro Medicus Ltd [ASX:PME], Corporate Travel Management Ltd [ASX:CTD], Avenira Ltd [ASX:AEV], N1 Holdings Ltd [ASX:N1H], Recall Holdings Ltd [ASX:REC], and Spark New Zealand Ltd [ASX:SPK].
52-week lows: 19 stocks, including Corum Group Ltd [ASX:COO], Ziptel Ltd [ASX:ZIP], and Keybridge Capital Ltd [ASX:KBC].
Note: The stocks listed above are stocks that hit an intra-day 52-week high or low during today’s trading. The stocks didn’t necessarily close at the 52-week high or low.