Red Hot Penny Shares

The Small Cap Effect – The secret to buying small shares at a discount – and selling them at a premium…

Tucked away in a little-explored corner of the JSE are a hundred or more little known small cap companies. And it’s from this forgotten corner of the market that Red Hot Penny Shares readers have made returns like 142% on Adapt IT, 179% on Mpact and 111% on Quantum Foods in little more than 12 months! There are many ways to uncover these kinds of shares but one of the key analytics I use to find these undervalued stocks is something I’ve coined the Small Cap Effect.

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Why “forgotten” returns are a big plus for penny share investors

Before a penny share makes its way into our Red Hot portfolio, it must offer excellent value, solid sales growth, consistently improve earnings and be in a strong cash position. When I find a share that satisfies each of these criteria, I know I’m on to a winner!
But there are plenty of other factors I consider too. One of the key fundamental measures I look at is how much, and how frequently a company rewards its loyal shareholders. That’s why today, I’m going to talk to you about the importance of the “forgotten” return.
It’s the single best way to get your slice of company profits!

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