Under the Radar Report investment newsletter
99% of all financial news relates to the 40 to 50 biggest companies, so what about the rest? They're Under the Radar.
Who are we?
We are a niche Investor Newsletter covering small cap stock and shares in the ASX listed small companies that are not reported on at a satisfactory level anywhere else – including the mainstream media. And it is these dynamic small companies that offer the chance to multiply your returns… but more of that later.
Obviously investing in small caps does not come without risk, and as we explain in our Portfolio section, everyone should have between 15 and 25 per cent of their investment allocation for equities devoted to small caps.
Why Under the Radar Report?
Under the Radar's team led by Richard Hemming, have been researching and reporting on small caps for more than 15 years.
Assisting us in our endeavours is a high powered investment committee, whose members include Geoff Wilson and Karl Siegling.
Radar also has access to independent experts within the small cap sector such as fund managers and analysts, as well as the management and boards of the companies we are researching and reporting on.
Specifically, what does Under the Radar Report offer?
Under the Radar Report provides ideas on investing in the specific area of "small caps", or small listed companies on the ASX. We are independent, which means we are not affiliated with any stockbrokers or investment advisers, whose advice can be self-serving because it is based on corporate fees and commissions.
Radar's "small cap" market refers to companies listed on the Australian Stock Exchange (ASX) with market capitalisations between $20 million and $300 million.
We cover all industry sectors. The 1500 or so companies we investigate includes everything from gold miners to information technology companies to biotechnology. Because of their small size, these companies are rarely covered anywhere else.
You will receive our investment newsletter fortnightly and subscribers gain full access to our website, which includes:
- Stock market tips
- Sector reviews
- Interviews with successful fund managers
- Our model portfolio
- How to make money made simple in our "Smarten up" section
- Comments from industry heavyweights
Why Small Caps?
Investing is about making money and here are some key points which explain why small caps should be a component of every investors' portfolio:
- A lack of information…The Australian small cap market is notoriously inefficient. Unlike bigger companies, few, if any analysts' forecasts exist for its revenues and profits. There is also little idea of whether or not the company will need to come to investors for capital.
- Which means opportunities to make money…Precisely because of these inefficiencies, the only area where fundies outperform the market is in the small cap arena, according to ratings agency Standard & Poors.
- Small caps offer an essential avenue for retirement preparation, because they can generate capital growth for investors.
- This is because small companies offer leverage – both operationally and financially.
- Leverage means you are much more likely to double in size if your market cap is $100 million, than if it is $1 billion.
- Small companies provide diversification from how the economy performs. A small company's earnings growth is based more on increasing its market share, than on how the general economy performs. It is coming from a very low base, so if you believe in the story, there is every chance it will achieve just this.
- A small company can grow its earnings by increasing its market share from 1 per cent to 5 per cent. A large company with market share of 50 per cent will be basically defending its position.
- Small cap ASX listed companies provide the only opportunity for investment in businesses that have management that are both entrepreneurial and experienced, to varying degrees. The exciting part of being invested in this sector is watching businesses grow.
Our Portfolio Manager, The Idle Speculator, 20% returns a year over 20 years
Since starting his investment life with Fidelity in London, he has returned an average of 20 per cent a year over 20 years.
This is no accident and much of the return is due to picking winners in the small cap space. These company's offer more chance to make big returns than any other asset class.
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