Small cap stocks have had a tough time in recent years. While the underlying businesses in many cases did really well - their share prices didn't.
Between March 2016 and March 2020 the Small Cap Index was down 44%.
In the last 6 months though, the Small Cap Index is up 25%, erasing a great portion of its past losses.
And thus far 2021 looks like a scorcher for small companies.
In t... ››› more
Between May 2015 and May 2018, the JSE Small Cap Index went nowhere. And between May 2018 and May 2020 it dropped 44.68%.
Since then however the Small Cap Index is up 29%.
That's a huge rally in just six months.
But here's the thing. It's not over yet. The small companies in this index aren't even back to the levels they traded, at the start of 2020. Never mind their 2018 highs…
... ››› more
Right now, all of the popular DeFi projects are built on top of Ethereum.
In fact, if you look at the top 100 cryptos by market cap, most of them are built on top of Ethereum.
But as you may know, Ethereum doesn't deal well with massive network demand just yet. (That's part of the reason Ethereum 2.0 is so hotly anticipated.)
And so, transaction fees have gone through the roof. It curr... ››› more
Have you ever wanted to kick yourself because you sold a stock that just kept going up and up?
It happens to the best of us…
Earlier this year, at Red Hot Penny Shares it happened with DRD Gold.
We bought the stock at 265c in June 2019 and sold it at 1577c in May 2020.
Adding in the dividends we received I was very happy with a 519.62% gain.
A mere 2 months later the stock hi... ››› more
Property stocks on the JSE have had an atrocious year.
Right now, they're still around 46% lower than they were one year ago.
We all know that many landlords, especially in the retail space, had empty shops and tenants that couldn't pay during the hard lockdown…
But the property index has started a turnaround. Since 1 November 2020 the SA Listed Property Index (SAPY) is up 15.81%.
... ››› more
Financial advisors hate penny stocks… Fund managers barely ever invest in them.
But if there's one thing that these tiny shares have shown over the years it's that they've got huge upside potential.
In 2020 alone Red Hot Penny Shares reader have banked a 274% gain on Pan African Resources, 519% on DRD Gold and 111% on Quantum Food Holdings…
Most investors can only dream of these kind ... ››› more
Q. “Timon you were right about the delay in the voting in the USA, due to the counting of hand mail.
But now the big question is.
What can we expect with the US stock markets, with Joe Biden becoming the next American President?”
A. I did some research on the weekend. When I went to back-test the US stock markets over the last 23 election years, what I found might surprise ... ››› more
The only thing on investors' minds right now is the US election.
At the time of writing the final votes have yet to be tallied. Right now, many battleground states are still up for grabs, with Pennsylvania looking like the key to victory.
Trump has already claimed the win and approached the courts filing multiple lawsuits in most of the swing states. He's demanded a recount in Wisconsin. A... ››› more
Q. “Hi Timon, with the gemors going on in South Africa, I really want to just be able to trade overseas. Could you please tell me how I can open an offshore trading account, how much money I'll need and which brokers are the easiest to trade with?”
A. I fully understand where you’re coming from.
It’s not safe anymore to keep your money in just one place – especiall... ››› more
Right now everyone's talking about the US presidential elections. While the US president doesn't directly affect us - what happens to the US economy affects the entire world. So, there's definitely some merit in keeping an eye on the Americans…
Similarly - in 2021 we'll have local government elections again in SA as well.
So how do elections affect the stock market? And is there anything... ››› more
Benjamin Graham' value investing strategy is widely believed to be the most successful of all time.
And while many of you may not know much about Ben Graham, I'm sure all of you have heard of Warren Buffett and are keenly aware of his success as an investor.
What you may not realise is Warren Buffett was a student of Benjamin Graham and he bases his success as a stock picker on what he l... ››› more
Q. “Hi Timon, it's been a tough two months trading, with this sideways market.
Right now, I'm worried because I'm down 15% of my portfolio.
It's entirely my fault as I let my trades run down without a stop loss.
Do you possibly have a calculation that I can use to see how much I need to recover to get my portfolio back to what it was?”
A. Hi Andrew, yes it is most defin... ››› more
This might sound a bit ‘far-out'…
But, according to the world of mathematics, everything is connected. From the shape of a shell to the design of a guitar. From the way trees grow, to the spiralling arms of galaxies. Everything is connected by a single simple number: The Golden Ratio or 1.618.
This ratio is closely related to the work of Fibonacci. He was widely accepted as the most ta... ››› more
Q. “I'm trying to decide whether the MATI Trader System Programme or Red Hot storm Trader is better for me. Can you please tell me the difference between the two and what I would get with both?”
A. The best way I can describe the two is this.
The MATI Trader System Programme is a complete online trading programme where I reveal my one and only trading strategy I have used for t... ››› more
Last week I wrote about the benefits of using support and resistance lines. This charting technique is easy to learn and probably one of the simplest and most useful tools when it comes to timing entry and exit points.
Now, before you shoot me down, I’m well aware of the old financial planning adage that goes: It’s not about timing the market, it’s about time in the market.
... ››› more
Early on in the COVID-19 pandemic there was a ‘nerdy' accounting joke doing the rounds saying that soon we'd see EBITDAC - Earnings before interest, tax, depreciation, amortisation and corona.
While there's no ‘official' accounting term like that - companies results do show the effects, the pandemic has had on them. And many are opting to call it ‘once-off expenses.
Suddenly the ner... ››› more
If you've been following my Thursday Money Morning contributions over the last few weeks, you'll know we're slowly working through the important concepts in trading and technical analysis.
Last week, we covered some of the basics around risk management. If you missed it, you can find the article here.
But this week we’re tackling one of the most useful and often ignored as... ››› more
On 31 August 2020 Apple's share price will drop around 75% from what it was.
That means its share price will go from the current $437.50 to around $109 a share.
I don't need a crystal ball to predict this.
You see, Apple announced it is doing a 4-to-1 stock split.
And its not the only company doing this. Tesla announced a 5-to-1 stock split that'll happen on August 21.
So, what do... ››› more
Today I have a proposition for you to start your Monday and possibly have a decent pay out by Friday.
While we are all mostly on lockdown, twiddling our thumbs at home…
Most of our Pickpocket Traders and Red Hot Storm Traders are, banking a second income through both of our local and offshore trading services…
In fact, we have had two extremely profitable quarters yet to date for ... ››› more
I think we can all agree. 2020 is completely nuts!
In the last week, we saw a nuclear-sized explosion in Beirut, after 2750 tons of ammonium nitrate flattened the port city.
Trump is trying to force Chinese-backed TikTok to sell its US interests to Microsoft (with the US treasury getting a slice of the action) in what has to be the strangest M&A deal in history.
And we have both the te... ››› more
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