Small Cap Stocks

A quick look at four ASX small-cap precious metal stocks

 A quick look at four ASX small-cap precious metal stocks

Precious metal companies with various market capitalisation are listed on the Australian Stock Exchange (ASX). Let us look at some of small-cap precious metal stocks:

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From TEM to SMS: How have these ASX small-cap resources shares fared YTD?

From TEM to SMS: How have these ASX small-cap resources shares fared YTD?

  • June 26, 2022 07:00 AM AEST | Ashish

The benchmark ASX 200 index has remained under pressure so far this year, down nearly 14% since the start of 2022 due to geopolitical tensions, rising inflation and interest rates

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Is the drop in momentum temporary for these buy now, pay later stocks: Splitit, Openpay Group, Sezzle?

Is the drop in momentum temporary for these buy now, pay later stocks: Splitit, Openpay Group, Sezzle?

Summary The Buy Now, Pay Later (BNPL) market has been thriving significantly higher than the ASX 200 index driven by ever increasing customer base and merchants onboarding. However, many BNPL players experienced a drop in their share pr ...

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Lens on Two ASX Small-cap Players with Solid FY20 Results - Hub24 and MNF

Lens on Two ASX Small-cap Players with Solid FY20 Results - Hub24 and MNF

Summary Despite the prevailing uncertainty in the market, two small-cap players, Hub24 and MNF, managed to deliver impressive FY2020 performance. The two stocks have done well on the ASX, surpassing their respective industry performance ...

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ASX-listed Eureka and PointsBet Share Prices - What’s the Rally Looking Like

ASX-listed Eureka and PointsBet Share Prices - What’s the Rally Looking Like

COVID-19 has been the most uncertain time in recent history. Several businesses are still figuring out the ways to adapt to the changed scenario and how to make the most out of the new opportunities. However, there are companies that are fu ...

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What is the reason behind amaysim Shares hitting 52- week High & Beating ASX200?

What is the reason behind amaysim Shares hitting 52- week High & Beating ASX200?

Summary The continuous business performance has been reflected in several small-cap or mid-cap telco stocks with many of them faring better than the ASX200. amaysim, with a market capitalisation of A$213.96 million on 24 August 2020, ha ...

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Small-Cap Stocks - A Look at ANW, FAR, MLS, OAR 

Small-Cap Stocks - A Look at ANW, FAR, MLS, OAR 

Summary Adding small-cap stocks enhances one’s investment portfolio. Though riskier and volatile compared to established players, these stocks have more chances to grow further. Ten Mining has failed to finalise the Granville Tin ...

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All about the Takeover Offer by Iberdrola for Infigen 

All about the Takeover Offer by Iberdrola for Infigen 

Summary In June, Infigen Energy announced entering into a bid implementation agreement with Iberdrola, as per which Iberdrola would make an off-market takeover bid for IFN at 86 cents per stapled security in cash. The offer would move al ...

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3 Small caps nearing 52-week high- GRR, PAI, WQG

3 Small caps nearing 52-week high- GRR, PAI, WQG

Summary During the March quarter, GRR implemented and expanded on its business continuity response plan to focus on tackling coronavirus outbreak. For the quarter ended June 2020, PAI in its investment update mentioned that the Company ...

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Lens on Small-Cap Stocks - Superloop, Next Science, Retail Food Group

Lens on Small-Cap Stocks - Superloop, Next Science, Retail Food Group

Summary Small-cap investment is riskier but offers excellent opportunity to earn big in the market. Superloop registered 37 per cent increase in group revenue for FY20 and achieved the midpoint of guidance for EBITDA at AUD 13.5 million ...

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With cinema halls and resorts reopening, are EVT and VRL set for good old days?

With cinema halls and resorts reopening, are EVT and VRL set for good old days?

Summary Most of the hotels owned by EVT remained open throughout the shutdown caused by COVID-19 with several initiatives implemented to address the impact of COVID-19 pandemic. Earlier, in July, EVT notified on its decision to not pay ...

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Frequently Asked Questions

Investors tend to get attracted to small caps because of the ability of these small companies to deliver exponential growth in a relatively quick span of time. These companies are able to deliver high growth rate in earnings because of small base. However, these stocks also portray a heightened level of volatility, which makes them not a viable investment decision for beginners or for investors with low-risk appetite. The weightage of small caps in a portfolio should be curated based on individual investors’ investment goals, time horizon, capital adequacy and risk appetite. Stocks of these companies also witness low trading volume on exchanges as most of the astute and big investors tend to stick to big and well-established companies.

Investment in small caps is similar to investing in a new company. Many companies might not be able to make it to the big league and investors might face a long streak of losses. However, a few companies have the ability to turn out to be multi-baggers, which deliver a massive return, covering losses from other small caps by a wide margin. However, investors need to have a high-risk appetite, adequate capital to sustain losses and not to mention proficient knowledge, only then they might have a chance to make it big in penny stocks.

Analyzing a small-cap company is sometimes more difficult than doing the same for a large-cap company. The reason is the limited financial history of the company and often poor fundamentals, which make it difficult to estimate the future potential of the business. Fundamentals of a small cap can change very quickly and therefore, long-term projections are often more skeptical. Investors’ conviction and knowledge up to the industry level constitute a good part of investing in small caps. Also, investors should not get carried away by one-time windfall profits by the company as the sustainability of these profits is not proven and often is questionable.

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