HomeHome SearchSearch MenuMenu Our productsOur products

A special kind of JSE Stock that Could Hand You a Small Fortune

by , 05 July 2018
A special kind of JSE Stock that Could Hand You a Small Fortune
This is the first day of your 7-part series…Penny Stock Profits - How to generate 100%,200%, 300% even 1,000% from some the JSEs sweetest small cap plays.

Over the next 7 days, I’ll show you how you could profit from the pointy end of the JSE.
Of course, I’m talking about small-cap stocks.
Stocks that could hand you gains like 100%, 300%, 1,000% or more.
As you’ll see over the next fortnight…
I’ve helped readers collect gains just like this for over 8 years.
Today, we’ll go over some basics.
I don’t want to overload you with too much information.
There is a specific strategy that could maximise your potential small-cap profits. And I’ll step you through this strategy over the next 7 days.
But before we dive right into the ins and outs of speculating profitably on small-cap stocks, let me introduce myself.
My name is Francois Joubert.
I started investing in this particular type of small cap share when I was at university at the age of 19.
I started with R15,000 - paid for my studies, bought my first property and started a business with the money I made from the shares I bought with my initial investment…
Since then I’ve used it to pay for and finance my:
  • House – I live out near Harties…
  • My car
  • Four property investments – already giving me a profit of around R12,000 a month
  • My wife’s car
  • Our holidays - I’ve been to Malaysia, Indonesia, Mozambique and on a number of South African holidays in the last year alone!

I’m pretty much debt – free and I’m 29 years old!
Now you may just think I’m lucky but over the years, I’ve helped family members like my father and uncle, fund their retirement by setting up their own portfolios.
And it’s also why in 2010 I decided to chuck in my engineering job to pursue my passion for investing and join FSP Investment Research.
I’ve worked as an analyst here at FSP Investment Research for more than 8 years.
I’ve had the fortune to work and collaborate with every editor here and most of our international affiliates.
I’ve seen and used a range of money-making strategies, from income investing to fast paced forex day trading.
And I can say right now — without doubt — the best way to increase your net wealth FAST is by speculating on tiny, explosive stocks.
I’ve uncovered small-cap punts that have rocketed up 100%, 300% and even more than 1,000%.
If your mouth waters when you see figures like that…hold onto your hat.
Over the next fortnight, I’ve reveal how YOU could potentially collect gains like those for yourself.
Now, let’s jump into the first day of your 7-day Extreme Small-Cap Profits email course.
It’s ambitious. But it just might work…
Three ‘Rocket Stocks’
that could make you
up to 726%
And these three stocks could be your ticket to this potential profit explosion:
  • One stock that could turn R10,000 into more than thirty GRAND with their ‘super-powered’ waste transformation programme.
  • Our second pick could potentially turn R10,000 into R32,571 in this niche segment of the property market.
  • And you could potentially double your money on ‘Edison 2.0’, our third potentially lucrative stock.
Small-caps 101
Before you can start to find small-cap gems hidden on the JSE, 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. And it’s because of their size that they have the potential to grow rapidly.
‘Small’ can be defined in many ways.
I ideally pick out the very best companies that have a market capitalisation of less than R150 million. These are where the big opportunities lie.
Penny Stock Success Stories 
So small-caps are small stocks. Often referred to as penny stocks because they could be bought for pennies back in the day!
In the South African context, I’m talking about company shares sold for less than R10 and in some cases even less than R1! 
Let’s take a look at some real-life Penny Stocks that hit the big time…
Let’s look at Software and IT companies, Silverbridge [JSE: SVB] and Mustek [JSE: MST].
Both are comfortably below the billion rand market cap range.
Mustek has a market cap of R524 million, and Silverbridge is worth R40 million.
Both also had the potential to rocket up within months.
In May 2016 Silverbridge shares traded at 150c. In August it announced big profit growth and the share price shot up to more than 350c by August 2017. That’s a massive 133% in a mere three months!
Mid 2017, Mustek got off to a running start. From its August lows the company’s share price shot up 80.55% in less than 7 months.

In the roughly 18 months since January 2017 the JSE’s All Share Index returned 12%.
That means you could have beaten the market’s returns multiple times by just buying Mustek or Silverbridge. 
Strike it rich backing a single stock
It’s safe to say, small-caps are an incredibly lucrative space to be in. Mustek and Silverbridge are just two examples of hundreds.
Meaning there are plenty of opportunities to double, triple and even quadruple your money, while the market plods along.
Between February 2014 and May 2015, a little logistics company I uncovered, called Santova, returned 221.77% to Red Hot Penny Shares investors.
The company had fingers in multiple pies. They have logistics, import and export operations in South Africa, Hong Kong, the UK, USA, and a string of other companies.
From January 2014 till May 2015 the stock rose from 112 cents to an eventual high of R3.90.
That’s a 248% return in less than 18 months.
It was a great investment for Red Hot Penny Shares subscribers, who netted a return of more than 221%.
Yes, that’s right, subscribers made more than two-times their money.
Those who invested R35,000 turned it into R111,637. Anyone who invested R100,000 would have turned it into R318,965!
It’s these kinds of returns we’re looking for as small-cap investors.
Had you rather invested in an index of JSE listed ‘Blue Chip’ companies you’d have turned R35,000 into R41,498.
Yes, that’s the difference between R111,637 and R41,498 from a single investment of R35,000.
Of course, there are risks involved.
Such small companies have limited histories. Because of that, it’s difficult to predict future growth.
Their small size also puts them at risk of extreme price swings throughout the year.
As you might already know, it’s far easier for a small-cap stock to decline 10% than it is for a business worth R100 billion to decline 10%.
I’ll explain more about risks associated with small-cap investing as we go on through your course.
But for now, just be aware there is no such thing as a free lunch. Even when investing in highly lucrative small-caps.
Stay tuned for Day 2
OK, I think that’s enough for Day 1.
It was very introductory. Don’t worry, it will get more exciting…and in just 7 days, you’ll know how to make potentially life changing investments.
Keep an eye on your inbox. I’ll be in touch soon with Day 2 of your penny stock profits email course.
The subject line will read: PSP Day 2: How to find hidden gems on the JSE.
Hint: It’s all the things the mainstream and institutions ignore about these small stocks and everything small cap analysts like myself love. Its exactly why it makes them so profitable for us private investors!
Francois Joubert, 
Red Hot Penny Shares

A special kind of JSE Stock that Could Hand You a Small Fortune
Rate this article    
Note: 3.74 of 19 votes

Related articles

Related articles

Trending Topics