For example, the S&P 500 currently sells for 20 times expected earnings for the next 12 months. The technology-laden Nasdaq sells for 27 times earnings. Even after last year's big drop, those ratios are still well above historical averages - and no great bargain. Yet I'm finding dozens of small cap and microcap companies that are nimble, growing... and dirt cheap. Out of respect for paying subscribers, I can't reveal their names and ticker symbols here. But let me give you a little taste of the gains we're enjoying in my VIP Trading Service Oxford Microcap Trader... Three months ago, I recommended a Florida biotech that is creating therapies for patients with chronic neuromuscular and neurological diseases. I noted that earnings per share were up 78% on a 46% increase in revenue. But the stock was dirt cheap. Three months later, the S&P 500 is up 8%. Yet our little biotech is up 49%. (And we still own it - with a trailing stop to protect our profits - in the portfolio.) Last month, I recommended a firm that operates over 200,000 charging spots for electric vehicles in the U.S. and Europe. I pointed out that revenue soared 93% in the most recent quarter and earnings topped the Wall Street consensus by a double-digit margin. Yet the stock was selling for a quarter of what it did two years ago. This stock has already rallied 25% since I recommended it, compared with a 3% gain for the S&P 500 over the same time period. And we're holding on still for more gains. Here's a final example... During the first week of January, I recommended a San Francisco-based digital financial services company that has helped millions of customers meet their investment goals and reach financial independence. The stock was selling for less than five bucks. But sales were growing 51% year over year. Adjusted earnings were up 332%. And the company has easily exceeded Wall Street's sales and earnings estimates over each of the last four quarters. Our shares are up 24% in just two weeks. These kinds of short-term gains simply aren't possible in mega-stocks like Walmart (NYSE: WMT) or Coca-Cola (NYSE: KO)... or even with technology leaders like Apple (Nasdaq: AAPL) or Microsoft (Nasdaq: MSFT). If you want to make good money in 2023, here's my advice... Invest most of your equity portfolio in solid, blue chip stocks. But make sure you also hold some of the fastest-growing small companies with the best valuations. Those are likely to deliver the highest returns of all this year. In fact, I'm going all-in on this type of investment in 2023. Go here to discover why. Good investing, Alex |
No comments:
Post a Comment