| Look at RedCloud Holdings (Nasdaq: RCT). It was trading between $1.40 and $1.70 in June of this year. But by July 1, it had tripled to $4.29. PepGen (Nasdaq: PEPG) recently doubled - from below $2 to over $4 - in just a month. And Dominari Holdings (Nasdaq: DOMH) skyrocketed nearly 13X, rising from $1 to $13, from mid-January to mid-February. That's the kind of action most people who get involved in microcap stocks are looking for. And there's nothing wrong with that as long as you know the risks and position size accordingly. Many investors don't know this, but you can also find microcaps that pay dividends. For example, Kimbell Royalty Partners (NYSE: KRP) has a market cap of just $1.4 billion and yields almost 12%. And $30 million market cap Crown Crafts (Nasdaq: CRWS) sports an 11% yield. That brings me to another point: Microcaps don't have to be startups that have recently gone public or are involved in Bitcoin or some other speculative technology. Crown Crafts makes baby furniture and has been around for almost 70 years. I tell investors that when creating a portfolio, they should diversify into various sectors, geographies, and market caps. There are times when large cap companies outperform and other times when small cap or microcap companies are better. No doubt, my buddy was looking for one of those microcaps that are about to take off. Everybody is. And it's okay to invest in these types of companies. In fact, I recommend that investors include microcaps in their portfolios so they have exposure to these small companies that can double or triple in a short period of time in some cases and fly under the radar in others. Just be sure you know why you're buying a stock, and have an exit plan (like a stop) set up ahead of time. This ensures that you will sell if things change or grab profits when it's time. Good investing, Marc P.S. Tomorrow, I'm co-hosting an event with Chief Investment Strategist Alexander Green that we're calling The Micro Mag 7 Summit. During the summit, we'll explain how America's quest to beat China in the AI race could lead to unprecedented gains for certain small cap stocks... And why it could all start as soon as six days from now. We'll have more details during the event - and we'll even give away the name and ticker of our favorite small cap stock right now (for free!). Don't miss it. Lock in your spot right here. |
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