Micro cap specs

[springhill]

OK makes sense i guess.

Is there any on that list that you are considering sell all or part of your position at this stage?

I wish that was my purchase list!

This was a list I was compiling while going through every spec miner on the ASX. I am 3/4 of the way through. To be honest did not expect these results this quickly.

This was meant more as a test of my criteria, as specs had been performing abysmally lately. Wanted to see if where I was at was still relevant in this market.
I will have to run a review on the list again soon.

Hypothetically I would not sell any of those at this point, there is still alot of unrealised potential in each one

 

[springhill]

PVD +20%
CQC -10%
SKM +20%
PRE +9% (Thanks to burglar)
FRC +44%
GBE -4%
BGH -20%
ESR +10%
STK +14%
PRA +4%
ZTA +4%
XCD -1%
ATU +25%
AXE -3%
MTN +28%
MDA +24%
MEP +15%
PTS +21%
LMR +15%

Take that XEC (S&P/ASX Emerging Companies Index)!!

 

[prawn_86]

Up over 200% assuming equal position sizing, no slippage and no brokerage.

Good work

 

[springhill]

PVD +18%
CQC -10%
SKM +20%
FRC +78%
GBE -6%
BGH -20%
ESR +10%
STK +14%
PRA +6%
ZTA +13%
XCD +0%
ATU +28%
AXE +14%
MTN +28%
MDI +24%
MEP +18%
PTS +27%
LMR +15%
RCF +20% (formerly PRE)

Average portfolio percentage gain/loss = +15.6%

 

[springhill]

PVD +29%
CQC -10%
SKM +20%
FRC +78%
GBE -6%
BGH -40%
ESR +0%
STK +55%
PRA +6%
ZTA -4%
XCD +7%
ATU +0%
AXE +0%
MTN +17%
MDI +38%
MEP +18%
PTS +27%
LMR +5%
RCF +8% (formerly PRE)

Average portfolio percentage gain/loss = +13%

 

[buick23]

Good morning fellas thanks for the interest.

First thing is that my 'system' is completely manual. The only filter I have is the criteria in my head. Labour intensive, yes, luckily I enjoy this kind of work.

Exit criteria. I honestly cant throw a blanket over the lot and say I will exit after X, Y, Z.
Each stock has its own strengths and weaknesses, including a little niche reason why I enter in the first place. It could be cash position v MC v Cash burn, an announcement I am anticipating arriving, a cap raising, major investment, dilution etc etc.
Exit reasons for each stock vary and timing varies.

With entry based on MC:Cash, constant review is important to see if you are getting value for spend.

I have got it very right and also very wrong in the past, but have learnt from both and have reduces my profit expectations and risk accordingly.

Sorry I cant define it in a more clear way

The pro/con of a manual system, I suppose.

Thoughts?

I really enjoy reading your threads, its come at a good time, I picked up JIN as a micro cap a few months back
they recently expanded into the US market, do you know it?

like to here from you about new micro caps and how do you get onto them so early
what is your main source of research?

 

[springhill]

I really enjoy reading your threads, its come at a good time, I picked up JIN as a micro cap a few months back
they recently expanded into the US market, do you know it?

like to here from you about new micro caps and how do you get onto them so early
what is your main source of research?

Hi mate, thanks for the kind words. I am not familiar with JIN, I try to stick to spec miners at this point in time, but the chart is heading in the right direction over the last few months, so well done you.

The short answer is constant research. I review the ASX announcements each day, but am most active at Quarter/Half/Yearly reporting time. I can get the most accurate figures in regards to share allocation and cash position, as well as upcoming activities.
Something I think is a piece of trash during one quarter, can become a perfect opportunity a quarter or 2 later. That may be by means of share consolidation, project sale, change of management, project acquisition, cap raising etc, etc.

There is nothing too complicated about it, you just have to know what you are looking for.

 

[Crows]

You should do an update on where that little list has gone so far. I noticed some have made a considerable change since you last posted. Interesting to see, I must say.

 

[springhill]

You should do an update on where that little list has gone so far. I noticed some have made a considerable change since you last posted. Interesting to see, I must say.

PVD +76%
CQC -10%
SKM +20%
FRC +83%
GBE -3%
BGH -40%
ESR +27%
STK +41%
PRA -21%
ZTA -48%
XCD +11%
ATU -5%
AXE -3%
MTN +21%
MDI +17%
MEP +36%
PTS +28%
LMR +19%
RCF +8%

 

[Crows]

Only 3 stocks at 20%> in the red and the rest are either close to neutral or way in the green. I'm interested to see what happens in the next few months when more money gets spent.

 

[springhill]

Only 3 stocks at 20%> in the red and the rest are either close to neutral or way in the green. I'm interested to see what happens in the next few months when more money gets spent.

Hit the nail on the head. If MC:Cash is a consideration in purchase of a stock, then they must be a quarter by quarter proposition.
Taking the upcoming quarterly spend into account is important, and will give a heads up on short term financial position.

If I was to go through the entire ASX quarterlies for spec explorers next quarter, that list would look quite different. Some, or quite possibly all, of the stocks in this list may have moved outside the criteria. This list as an investment trial could be obsolete in less than a month.

 

[Gringotts Bank]

PVD +76%
CQC -10%
SKM +20%
FRC +83%
GBE -3%
BGH -40%
ESR +27%
STK +41%
PRA -21%
ZTA -48%
XCD +11%
ATU -5%
AXE -3%
MTN +21%
MDI +17%
MEP +36%
PTS +28%
LMR +19%
RCF +8%

Very impressive springhill. Better than The Speculator whom I used to follow in the BRW.
Are you able to replicate this sort of performance with stocks of higher turnover? It would be very hard to take a position in a lot of these companies.

 

[springhill]

Very impressive springhill. Better than The Speculator whom I used to follow in the BRW.
Are you able to replicate this sort of performance with stocks of higher turnover? It would be very hard to take a position in a lot of these companies.

I could not answer that question in all honesty. I don't really pay much attention to high turnover stocks. More variables that have to be taken into account as well.
My aim is to try and keep it simple.

Of course repeating it consistently over many quarters and varying types of markets is also a factor.

 

[tech/a]

It would be very hard to take a position in a lot of these companies

.

There in lies a big problem.
Take PVD traded $9000 worth today.
FRC hasnt traded!
Nor has MEP.

 

[Gringotts Bank]

I could not answer that question in all honesty. I don't really pay much attention to high turnover stocks. More variables that have to be taken into account as well.
My aim is to try and keep it simple.

Of course repeating it consistently over many quarters and varying types of markets is also a factor.

Say your stocks that had a minimum average of $100000 turnover per day, that's a very simple filter to add. It would encourage anyone who follows this thread to maybe take a position here or there... making springhill rich!

 

[springhill]

Say your stocks that had a minimum average of $100000 turnover per day, that's a very simple filter to add. It would encourage anyone who follows this thread to maybe take a position here or there... making springhill rich!

I only own 2 of them GB
Just testing my system and bringing lesser lights up for discussion.

 

[Crows]

Hi mate,

It'd be interested to see how these companies turned out with the whole market glaring down any small cap in sight. Most small caps I've been watching over the past 6 months, have taken a solid beating even though some have had quite good news!

 

[pods]

I've held many Microcaps over the years and lost a hell of a lot of money, but I figured I would be learning a long the way.

TTV - I had high hopes for them and especially their TV Wagering product but I think Mobile kinda killed it or lessened it's impact. However now I hold shares in a casino in Vietnam. Lots of risks there, but i'm hopeful. At least, when was the last time a casino went bankrupt?

My current Darling is MBE - Mobile Embrace. I've been pumping money into them. Even as recently as a month or 2 ago I sold the RFL which I had bought at 8.8c for 15c. I used that money to buy more MBE.

Recently MBE have gone from 2c to 5+ cents in about 3 weeks or less. Its been good and its about time. They're in exactly the sort of industry that you'd want a micro-cap to be in to make a lot of money - Mobile Commerce & Advertising, and recently there has been a lot of news about the mobile advertising market.

They reached a high of 5.7c, at which point they were trading at 17x their EBITDA - which may be a little too much and why they have come back a little bit (They dropped to $0.045 and are now at time of writing back to $0.052c).

What I wouldn't mind know is what is a good EBITDA multiple to be trading at for a high growth stock like MBE?

There's a thread for MBE: https://www.aussiestockforums.com/forums/showthread.php?t=5906

 

[pods]

Also i think COM And STE are fantastic byes at 1c and 2c respectively if you can get them.

 

[barry c]

What price do you define a micro-cap at nowadays? I have one share that is just under 8c (I paid a lot more for it unfortunately). Is that a micro-cap now?