Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Golden Rule for Picking Tiny Stocks

Companies / Investing 2022 May 28, 2022 - 10:11 PM GMT

By: Submissions

Companies

By Chris Wood : With thousands of tiny stocks out there… how can I filter out the junk from the ones with truly huge, 500%+ potential?

As RiskHedge’s microcap expert, it’s one of the most popular questions I get…

And today, I’m sharing the easiest way to put the odds of success in your favor.

In short: The quickest way to compile a shortlist of tiny stocks with the potential to hand you game-changing profits is to apply this golden rule:


  • Find tiny stocks that are disrupting LARGE markets.

Ask yourself: How big is the market this company is going after?

The bigger the better. It’s THAT simple. Although, for reasons I’ll show you, the size of a market opportunity is not always obvious...

Consider Amazon (AMZN).

Today, most folks know “Amazon” is a trillion-dollar giant at the center of our everyday lives.

But back when it went public in 1997, it was worth just $438 million. It sold books online. At first glance, this was not a large market opportunity. There were only about 1.3 million books in print at the time. And many companies shared the market’s $25 billion in annual sales.

But from day one, Amazon founder and CEO Jeff Bezos had much bigger plans. His focus was always to help connect buyers and sellers using technology.

Amazon disrupted the massive multitrillion-dollar retail market with its e-commerce platform. It completely changed the way we shop. And although it wasn’t the first company to sell stuff online, it essentially invented the online marketplace.

Amazon was going after a truly huge market. Every person with an internet connection was a potential customer. In 1997, that was 70 million people and growing exponentially.

That huge market opportunity allowed the company to grow fast. And that growth turned into quite the windfall for Amazon investors.

Then there’s Netflix (NFLX).

  • Netflix disrupted the multibillion-dollar movie rental market with its internet-based business model.

Back in the ‘90s, Blockbuster was a massive force in the movie rental market. It had more than 9,000 stores and raked in annual revenue of about $6 billion.

Then Netflix came on the scene and did away with physical stores. This drastically reduced expenses and freed up money that it used to develop a world-class digital system to deliver content. Brick-and-mortar operations like Blockbuster couldn’t adapt quickly enough.

Netflix changed the way we watch everything when it introduced its streaming service in 2007.

Again, the market opportunity here was huge. Everyone who watched TV or movies was a potential customer.

Just like with Amazon, that huge market allowed Netflix to grow fast.

Today, about 220 million of these folks (including me) subscribe to Netflix. And the company now generates over $30 billion in annual revenue.

Netflix stock is down from its highs in November 2021, but it was one of the best-performing stocks from 2008 through 2021… turning each $10,000 invested into about $1.3 million.

That’s what’s possible when you invest in tiny stocks disrupting large markets.

And Amazon and Netflix are far from the only examples…

  • Take eXp World Holdings (EXPI), which I recommended to my Project 5X members back in June 2019.

Think of eXp as the Netflix of real estate. It disrupted the massive $170 billion US real estate sales and brokerage market.

The company’s business is very similar to real estate companies like Keller Williams, Century 21, and RE/MAX.

These companies all provide real estate agents with offices, equipment, training, advertising, support, and sales leads. In exchange, they take a cut of the commission when an agent sells a property.

The difference is eXp doesn’t have physical offices. Instead, it provides support to its agents virtually.

This lets agents work with anyone, from anywhere, on anything, at any time.

All it takes is a computer and an internet connection. With that, you can log in as an avatar—an icon that represents you in eXp’s virtual world.

It’s like a video game, but for work.

This virtual world allows eXp to avoid the costs that come with physical offices.

And because the employee side of the business takes place in the virtual world, eXp can compensate its agents much better than other brokerages. It offers revenue-sharing opportunities and stock ownership packages.

The lure of more money gives agents a big incentive to join eXp. That’s led to massive growth in the number of eXp agents. And the more agents it has, the more money the company makes.

When I recommended EXPI to my members, it was worth just $600 million… or about one-tenth the size of the smallest company on the S&P 500 at the time.

But because the company disrupted a massive addressable market, it grew fast. And Project 5X members walked away with a 376% gain in just 16 months.

Of course, not every stock I recommend will perform like EXPI.

  • But in Project 5X, my goal is to find tiny stocks that have a chance of 5X-ing or better.

My latest recommendation is perhaps one of the most promising so far.

Its lead drug candidate could upstage the best-selling drug of all time, Humira.

It does all the things Humira does, with none of the drawbacks. And its clinical trials are showing it could be a successful treatment for Alzheimer's disease.

The last time a company had an Alzheimer's disease drug FDA approved, its valuation jumped by nearly $20 billion. That jump would be equal to 156X the value of the stock I recommended.

3 Breakthrough Stocks Set to Double Your Money in 2022

Get our latest report where we reveal our three favorite stocks that can hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Chris Wood

http://www.riskhedge.com

© 2022 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in