Microcaps: A Love Story
In 2007, Shapeways operated out of a small office, relying on a handful of 3D printers.
By 2013, it had 3D printed millions of thingamajigs for customers.
By 2021, they’d raised millions to enhance their services and expand.
This year? Shapeways has been the worst-performing micro-cap US stock.
With a return of -100%...
This indicates a complete loss of value.
THAT
Is an objectively awful microcap.
And yet, despite the risk…
Microcaps are awesome.
Why? They represent one of the biggest opportunities in the market.
The Biggest Advantage
Everyone knows microcap stocks are of the highest risk-reward strategies in the stock market.
That said, if you hit true, time it right, sit tight, and ride out the volatility…
Microcap stocks have the potential to deliver life-changing returns.
The BIGGEST advantage microcaps offer? Unlike large-cap stocks, which are heavily analyzed and tracked by institutional investors, many worthy microcaps operate under the radar.
Consider these three baskets of worthy microcaps:
- Good to Great Companies – These are small companies with strong fundamentals that have the potential to grow into great businesses. These are often the best way to play a trend or industry.
- Below Cash Value – Companies that are trading below book value or cash, sometimes due to sector-specific downturns or overall negative market sentiment. (Other times it can mean something isn’t right.)
- Rocketships – Companies with 30x or more potential. These are rare and typically high risk, but they can drive huge returns for a portfolio. The downside risk is often managed by ensuring the company has a core asset or legacy business that provides a floor of value.
It’s rare to uncover an opportunity that has ALL THREE…
But that’s where the big money is made.
Microcap Millionaire subscribers are the first to hear about James’ latest find - which, by the way, fits into these three baskets.
