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How to Play the Small Cap Collapse

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AN OXFORD CLUB PUBLICATION

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Editor's Note: As Contributing Analyst Jody Chudley points out today, small cap stocks have been experiencing one of their worst years on record...

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A Discounted IT Leader Enjoying Huge Upside

Jody Chudley, Contributing Analyst, The Oxford Club

Jody Chudley

Since becoming a publicly traded company in 2003, IT distribution company TD Synnex Corp. (NYSE: SNX) has made its investors very, very happy.

If you put $10,000 into this stock when went it went public in 2003, your investment would be worth more than $133,000 today.

Meanwhile, if you made a $10,000 investment in the S&P 500 at the same time, your investment would now be worth just $37,700.

Chart: Return on Your $10,000 Investment
 

That's outstanding performance.

And despite TD Synnex's meteoric two-decade stock run, this company has a market capitalization of less than $9 billion and it's often included in small cap funds. Personally, I would call TD Synnex a "SMID" cap (small cap to midcap) stock.

However...

Small cap stocks have been demolished so far in 2022. The small cap benchmark index, the Russell 2000 Index, had its worst-ever first half of a calendar year.

Year to date, TD Synnex's stock is down more than 20%.

But whereas other investors are getting out...

I see an attractive entry point for a company that has rewarded investors over the long term...

A company with large upside potential, at that...

Get My Take on TD Synnex

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