Hey Everyone,
You know the drill, always do your own research, always buy extremely cautiously with penny stocks and micro cap stocks, they are so incredibly risky. That being said, I typically try to find low points of a stock’s historical baseline to come up with a fair price that if it’s hit, you might want to consider owning the stock.
This is not financial advice but a few names to give you a good starter for your own research and DIY buy the dip investing strategy.
I’m bullish on defense stocks, I think Canadian stocks are undervalued, and I’m looking at some of my own favorites and seeing what I’d pay for them now. If I write CDN or TSX I am referring to Canadian dollars on the Toronto Stock Exchange. Keep second half of 2023 and 2024 is going to be a brutal year for startups and thus make some SMEs and penny stocks go bankrupt and or on a good deal to buy.
In my research of what micro penny stocks scale to become serious companies, the best bets tend to be in health-tech, odd niches of biotech and emerging tech. You need to do quite a bit of research on those startups to even understand their business model, on data that is pretty sketchy, but it is possible.
Due to the impossible macro environment, Chinese penny stocks will also continue to be on sale, buy buyer beware. All in all it’s a pretty challenging stock pickers market for penny, micro cap and smaller companies to understand if their valuations today make much sense in the scope of coming macroeconomic uncertainty. We’ve had a good few last months for the stock market, but all is not what it seems.
Try to pay attention to stocks in emerging markets and unusual global markets that have under-the-radar potential to scale.
I also debt a category I call “Urgent buys” where I feel these are immediate buys and nearly ready to be bought for a long-term hold. Preferable here to buy and flip stocks that have established historical patterns of hype and volatility.
I also have another category I call “Newly discovered” that are relatively new on my radar. This will make my buy-call lists a bit more interesting.
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