Blue Sky Limited shares are currently trading at $4.08, the lowest price for the company in almost three years. Blue Sky’s share price has dropped a total of over 64% in the past month alone, from $11.43 on 27 March.
Let’s look at the large blue chips. These are usually companies with a market cap of $10 billion and over. Some typical blue chips are BHP Billiton Limited [ASX:BHP] and Commonwealth Bank of Australia [ASX:CBA]. BHP has a market cap of $156 billion and CBA has a market cap of $139 billion.
Big institutional investors, for example, usually don’t venture into the small end of town mainly because of their size. Many of these money managers have hundreds of millions to put to work — they simply can’t invest in smaller stocks. That’s why I’d argue small-cap investing is perfect for individual investors, like you.
Before you can start to find small-cap gems hidden on the ASX, you first need to find gems in the market, and we need to know what small-caps are. So let’s cover some basics. Like the name suggests, small-cap stocks are small stocks.
Founded in 2006 as a free-to-use service funded by advertising, Spotify is now the leading music streaming service. The company made its debut on the New York Stock Exchange overnight. After reaching a high of $169, shares closed at $149.01 — 13% higher than its reference price on its first day of trading.
If the market does scream lower, there’s a chance for you to pick up multiple ‘castle’ stocks protected by deep wide moats at bargain prices. These are the kinds of companies (businesses with moats) that you should be looking to buy if our market drops lower this year.
GetSwift Ltd [ASX:GSW] listed on the ASX on 9 December 2016 at $0.265. The company had a fantastic run up to the end of 2017 when it touched a high of $4.60 before people started asking questions.
Stocks in WiseTech Global Ltd [ASX:WTC] fell 17.40% at time of writing today after what appeared to be positive earnings. What happened to WiseTech share price?
For a long time, Warren Buffett specialised in dumpster diving. He would buy small- and microcap stocks that traded at heavy discounts. Then, as a catalyst caused the share price to spike, he sold out for huge gains in a relatively short time. Now it seems droves of fund managers are trying to do the same thing. Let me explain how this will create opportunities for individual investors like you…
On the back of a positive announcement this morning, small-cap biotech firm Imugene [ASX:IMU] has jumped over 30%. At time of writing the stock is lying around at a 35.30% premium from yesterday.