We are an independent research house giving our subscribers quality small cap research with clear Buy, Sell and Hold recommendations.
Who are we?
Under the Radar Report is an independent niche research house which produces research newsletters for investors on the ASX. We are paid by our subscribers and are incentivized by our subscribers making money from our research and re-subscribing. And that's what our subscribers do.
Our analysts scour the ASX for dynamic small companies (small caps) that we believe will give our subscribers the chance to multiply their returns.
We are not PR for small companies.
Why Under the Radar Report?
Under the Radar Report's team led by Richard Hemming, owner and founder, have been researching and reporting on small caps for more than 20years.
Assisting us in our endeavours is a high powered investment committee, whose members include Geoff Wilson and Karl Siegling.
Under the Radar Report also has access to independent experts within the small cap sector including 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 gives our subscribers clear Buy, Sell and Hold recommendations on small cap stocks listed on the ASX. We help subscribers choose quality small cap stocks to invest in.
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. Nor are we paid by the small companies for exposure so we are not PR. We are independent.
Under the Radar Report'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 every Thursday and subscribers gain full access to our website, which includes:
- Find out our latest, BUY, SELL and HOLD recommendations
- Get all the research on the 100 small cap companies that we cover
- Read in-depth sector reviews to stay in touch with the latest investment themes
- Get behind the scenes with the top small cap fund managers. Our editor interviews the top performing small cap fund managers and you find out which stocks they are buying, what they are selling and their key investment lessons. It's a great way to find out what the top fund managers are thinking and doing in the current market conditions.
- Our model portfolio
- Comments from industry heavyweights
Why Small Caps?
Investing is about making money and small caps need to 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.
Read more about our Under the Radar portfolio