When it comes to tech, we all know the companies that have now become the stuff of legends: Amazon, Apple, Netflix, Google.
When you consider how high their stock prices moved — and how fast — it’s easy to feel as if you’ve missed out on the great tech revolution of our lifetime.
Especially when we’ve been seeing headlines like these over the past month:
- “Dow closes down 260 points at session low as mega-cap tech stocks turn negative.” — CNBC
- “The tech sell-off just sent three top stocks down 20%-plus.” — The Motley Fool
But here’s the thing: Mega-cap stocks are no longer your best bet for truly phenomenal gains.
Where you should be looking is small-cap stocks.
Now, you may be thinking: Those are far too volatile for me!
It’s true: Small-cap stocks (those with market capitalizations between $300 million and $2 billion) are more sensitive to market movements. But that can work in your favor as well.
Our very own Ian King has put together a groundbreaking new venture that pinpoints small-cap tech stocks on the precipice of breaking out higher. Read on for an exclusive interview…
Welcome to the New Era of Stocks
Smart Profits [SP]: Welcome, Ian! Thanks for chatting with us today.
Ian: My pleasure!
SP: Each year, the list of top performers is dominated by small-cap stocks — 80 of the top 100 stocks over the past five years. They’re riskier, but if you’re looking for the biggest gains in the market, these stocks have the greatest potential to skyrocket. Now, you have a system for finding them before they skyrocket?
Ian: That’s right. I use my specially designed five-step strategy for pinpointing these specific companies. Take a look:
SP: I see. Could you walk us through each step of this strategy?
Ian: I’d be happy to. The first thing I look for is a “tipping-point trend.” These are trends on the verge of a big breakthrough that will change our everyday lives. Take internet streaming in an overlooked area: video games.
SP: That’s been exploding over the past few years!
Ian: Exactly. Twitch came along in 2011, and it lets you watch people livestream video games. The service attracted 3 million users in the first month alone; but today, 140 million gamers use Twitch.
SP: So, you’re saying that this kind of exponential growth indicates a tipping-point trend is emerging?
Ian: Yes, precisely. Now, big-name companies such as Amazon, which owns Twitch, also benefit from streaming. But in my service, I look at smaller companies. They have the most room to run higher!
SP: That brings us to the second step of your strategy: small, innovative companies.
Ian: That’s right. There are undiscovered companies working on technologies that could change our everyday lives. And yet, year in and year out, these kinds of stocks offer the biggest gains.
SP: Tell us about your next step: the “X-factor.”
Ian: The X-factor is what I call a company’s line of business that is underpriced by investors. It’s a new business venture that has the possibility to disrupt an entire industry. Like Netflix did to the video-rental business…
SP: I see! And the next step of your strategy?
Ian: That’s momentum.
SP: By momentum you mean the stock’s price has trended up over the past several weeks?
Ian: That’s what everyone else looks at. But I’m not looking at charts and applying technical analysis. The momentum I’m looking for is in sales. I want to see that sales are increasing at least 20% or more year over year.
That’s because sales are numbers that can’t be manipulated. Find a company with sales going up at a 20% annual clip, and its sales will double in five years. This is key.
SP: OK! So, what’s the final piece of the puzzle?
Ian: This last step is critical. It’s ideal timing — that is, timing when to get into an investment is one of the most important parts of my strategy. Get the timing wrong and it could mean missing out on tens of thousands, or even hundreds of thousands of dollars depending on your investment.
For example, from March 2020 to August 2020, ACM Research Inc. (Nasdaq: ACMR) rewarded investors with a 399% gain. However, if you had waited two months to invest, you would’ve only seen a 78% return.
As you can see, I’ve got to make sure that the timing is right for a shot at the biggest profits.
SP: Wow! Just a couple of months changed the course of the trade altogether.
Ian: Exactly.
SP: Thanks for sharing with us about your new service, Ian!
Ian: You’re welcome!
And for any readers curious to learn more about Ian’s New Era Fortunes, click here.
Weekly Wrap-Up
Did you miss a Smart Profits Daily article this week? Never fear! Catch up by clicking on the links below:
- Three Strategies for Riding the Crypto Bull: It’s no secret that cryptocurrencies are highly volatile right now. You might be tempted to exit altogether, but that would be a mistake. Take a look at the three best ways to ride the crypto bucking bull.
- Crypto Volatility Is Your Best Chance for Gains: Crypto is the best trade for active investors, as there are more opportunities to make gains from buying and selling. And the recent volatility is creating the perfect environment for booking profits.
- Avoid the Damage of the Next Bear Market: As it turns out, avoiding large losses is really key to outperforming the major indexes. And that all comes down to one key decision: deciding when to sell.
- Beat the Market’s Madness With TradeStops: Keith Kaplan at TradeSmith came up with a way to take the guessing out of trading. His TradeStops system can tell you, with mathematical certainty, whether it’s time to sell a stock or buy more shares.
- Breaking News: Apple Could Accept Cryptos Soon: A recent lawsuit brought against tech giant Apple could be a game-changer for the crypto space. In their Market Insights video, Ian King and Steve Fernandez discuss what this development means for cryptos going forward.
Best Wishes,
The Smart Profits Daily Team
