The Hunt for the 10 Bagger for Under the Radar subscribers03.08.2012

We’ve had a cracking month with some profit upgrades from a few of our Small Cap tips. Our top ten tips by performance have now returned just over 72 per cent on an annualised basis.

Right now there is big value in the miners, especially the smaller ones. The ASX Small Resources Index has declined about 33 per cent in the past six months, compared with the ASX All Ordinaries, which has basically been flat.

Of our top 10 performers, only two are miners, and one of those is being taken over.

In conjunction with some fund managers and from speaking to many literally hundreds of miners we are coming up with a series called, “Grabbing a 10-Bagger Miner” – or something along those lines. It will start in our next issue out on Thursday.

The focus is small cap producers of precious metals that are trading at ridiculous multiples – like 2 times their projected cash flow, or at less than the replacement value of their production assets.

All these stocks need is a bit of an improvement in the gold or silver price, and to deliver on their production guidance, and it’s off to the races. You need to be watching the space very closely for opportunities.

Radar is combing the earth to find these things and we intend to keep a close eye on them, because timing is (almost) everything when it comes to investing.

About the Author

Richard Hemming

Investment analyst and Editor of Under the Radar Report

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