Small Caps/Growth Stocks

[mani99]

Hi all

I'm looking for some small cap stocks and wanted to get any tips from the folks on the forum. I will of course do my own research, just looking for a pointer in the right direction.

Got a budget of around $10k.

Thanks!
Mani

[Scrunch]

Mani,
If you have read overseas articles about small cap stocks out performing larger cap stocks you need to be careful about what small, medium and large cap means in the international context. The link below suggests small cap stocks are US$2b or less, medium cap are US$2-10b and large cap is above this. This means NZ large cap's like FBU are medium cap's in an international context. Some in the top 10-15 can meet this definition of small cap for example Air NZ at $2 has a NZ$2.2b capitalization which puts them as an international small cap. Everything outside the NZX50 and a lot of companies in it are "small cap".

http://www.investopedia.com/articles/analyst/010502.asp

[Baa_Baa]

Hi all

I'm looking for some small cap stocks and wanted to get any tips from the folks on the forum. I will of course do my own research, just looking for a pointer in the right direction.

Got a budget of around $10k.

Thanks!
Mani

Imho, no one is going to put their neck out to make recommendations, let alone those who are qualified to do so. With respect, DYOD and come back with some suggestions and see what people have to say about your preferences. There is no free ride, not here or anywhere, it's all up to you.

[janner]

Mani,
If you have read overseas articles about small cap stocks out performing larger cap stocks you need to be careful about what small, medium and large cap means in the international context. The link below suggests small cap stocks are US$2b or less, medium cap are US$2-10b and large cap is above this. This means NZ large cap's like FBU are medium cap's in an international context. Some in the top 10-15 can meet this definition of small cap for example Air NZ at $2 has a NZ$2.2b capitalization which puts them as an international small cap. Everything outside the NZX50 and a lot of companies in it are "small cap".

http://www.investopedia.com/articles/analyst/010502.asp

Great post Scrunch. To the point.. Good advice to all who arrive on here that look to " Small Caps " as their Magic Carpet to wealth.

Of course many do make very good money on Small Caps.

Due to their own research..

DYOR :-))))

[silu]

I only have one small cap/growth stock of the NZX in my portfolio and it's by far my worst performer. In this category I rather look to the ASX for opportunities.

[littletramp]

I have chosen an approach, with modest success (i.e. profitable to date over 3 years investing) of trying to narrow down my field of investment as a first step. I chose to limit my focus to companies identified as having sound management, operating in a manner I could understand, trading globally, with strong balance sheets and with under 100 million shares on issue. I quickly found that to have a realistic number of companies to choose from i had to be looking at Australia as well as NZ. By doing this and identifying about 50 Companies, I came to know them quite well and have been able to buy and sell, and add or delete from the list as the tides ebbed and flowed. It takes some basic preparation to do this but I recommend the method to you as through research you can identify some exciting prospects not at startup but once they have some traction. Otherwise you tend to be relying on the opinion of others as you suffer from information overload and get bogged down trying to monitor the whole market spectrum. Others may disagree with this method, but it works for me and you tend to be ahead of the market rather than chasing the prices up and down the board. Good Luck.

[mani99]

Mani,
If you have read overseas articles about small cap stocks out performing larger cap stocks you need to be careful about what small, medium and large cap means in the international context. The link below suggests small cap stocks are US$2b or less, medium cap are US$2-10b and large cap is above this. This means NZ large cap's like FBU are medium cap's in an international context. Some in the top 10-15 can meet this definition of small cap for example Air NZ at $2 has a NZ$2.2b capitalization which puts them as an international small cap. Everything outside the NZX50 and a lot of companies in it are "small cap".

http://www.investopedia.com/articles/analyst/010502.asp


Thanks for the link.

[mani99]

Imho, no one is going to put their neck out to make recommendations, let alone those who are qualified to do so. With respect, DYOD and come back with some suggestions and see what people have to say about your preferences. There is no free ride, not here or anywhere, it's all up to you.

Thanks for the reply. Just to be clear, I wasn't looking for a free ride and certainly wouldn't invest in anything based on recommendations from a forum. I was just after some suggestions as I'm still pretty new to the NZ market.

[Bilbo]

Thanks for the reply. Just to be clear, I wasn't looking for a free ride and certainly wouldn't invest in anything based on recommendations from a forum. I was just after some suggestions as I'm still pretty new to the NZ market.

These guys are small cap growth specialists - https://www.piefunds.co.nz/our-funds/ and have had good returns. I invest via them and also hand pick a few of their stocks to invest in directly. TIL was one they picked early and on the back of that I bought in at $1.29.

Not advice, just another option to check out.

[mani99]

These guys are small cap growth specialists - https://www.piefunds.co.nz/our-funds/ and have had good returns. I invest via them and also hand pick a few of their stocks to invest in directly. TIL was one they picked early and on the back of that I bought in at $1.29.

Not advice, just another option to check out.

Excellent, thanks.

[Leftfield]

I've done well out of ATM, BLT, TIL (no longer holding,) PPH and recently PIL and am watching/holding PEB with extreme interest.

Whether you classify these as small cap or growth stocks is up to you..... DYOR.

[Mista_Trix]

I hold all my Div paying stocks on the NZX and all my growth / small caps on the ASX, we just don't really have the population / market size to support that many small businesses here who have also floated.

[Valuegrowth]

Even companies such as DELL and Starbucks started with Next to nothing or as small companies. How about the Warehouse? It also started as a small company.

Not all small companies will have long term business or growth. My mantra is buying companies that I can understand. Currently, I am doing some study on small emerging companies in Asia-Pacific region.

What will be the best emerging small company in the NZ market? I would like to find out it.

[percy]

Whooops ASX Small caps.

https://stockhead.cmail20.com/t/d-l-vurllg-yupddjlly-i/