Small Cap Stocks
- September 25, 2022 10:00 AM AEST
- Aditi Sarkar
- August 04, 2022 12:38 PM AEST
- Aditi Sarkar
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 ratesRead More...
Is the drop in momentum temporary for these buy now, pay later stocks: Splitit, Openpay Group, Sezzle?
- September 01, 2020 02:05 PM AEST | Team Kalkine Media
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 ...Read More...
Lens on Two ASX Small-cap Players with Solid FY20 Results - Hub24 and MNF
- August 27, 2020 02:24 PM AEST | Team Kalkine Media
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 ...Read More...
ASX-listed Eureka and PointsBet Share Prices - What’s the Rally Looking Like
- August 26, 2020 07:10 PM AEST | Team Kalkine Media
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 ...Read More...
What is the reason behind amaysim Shares hitting 52- week High & Beating ASX200?
- August 25, 2020 11:39 AM AEST | Team Kalkine Media
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 ...Read More...
Small-Cap Stocks - A Look at ANW, FAR, MLS, OAR
- July 30, 2020 05:50 PM AEST | Team Kalkine Media
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 ...Read More...
All about the Takeover Offer by Iberdrola for Infigen
- July 29, 2020 05:52 PM AEST | Kunal Sawhney
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 ...Read More...
3 Small caps nearing 52-week high- GRR, PAI, WQG
- July 26, 2020 12:00 AM AEST | Team Kalkine Media
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 ...Read More...
Lens on Small-Cap Stocks - Superloop, Next Science, Retail Food Group
- July 25, 2020 03:20 PM AEST | Team Kalkine Media
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 ...Read More...
With cinema halls and resorts reopening, are EVT and VRL set for good old days?
- July 25, 2020 12:20 PM AEST | Team Kalkine Media
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 ...Read More...
Frequently Asked Questions
Why Should I buy smallcap stocks
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.
Are smallcap stocks a good investment?
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.
How do you analyze small-cap 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.