A Small Cap is the Star performer

A Diversified ASX Share Portfolio

I can confidently say my portfolio is diversified across different industries: Banking, A massive miner, Telecommunications, a tiny speculative miner, Food and Health. My weighting (how much I've got in each stock) is not even but I'm happy with how it stands at the moment with 44% in a safe bank that pays a nice dividend, about 15% each in stable established businesses (MAQ, TGR and AWC) and then a bit of a play, approx 5% in a speculative ASX health stock and a speculative miner.

I know I'm overweighted (meaning too much of my current portfolio is in one stock - NAB) and if I wasn't planning to buy more this wouldn't be right. But I am planning on buying more ASX shares during/after the reporting season as right now in February it's a flood of excitement with all the listed ASX stocks reporting to the market.

Read more about Investing in Small Caps. Why we picked these ASX Small Cap gems and their outstanding performance.

The star performer is an ASX Small Cap: Macquarie Corporate (MAQ), up over 17%

This ASX small cap was on our best stocks to buy list. Under the Radar Report has followed this small cap for a long time and our share analysts saw a buying opportunity again in September last year and put it on our Best Stocks to Buy list. I bought in at $22.94 and it's raced up over 17% and is now trading at $27! I've made over $400 on this small cap and I'm really pleased to have it in my share portfolio.

Our share analysts really like management and while they are in an investment phase recommended our subscribers to buy in again.

They have paid dividends very consistently in the past, they didn't in 2019 and I don't know their plan for 2020 but at some point in the future, when their investment phase is finished, I'm sure they will again. This small cap is a definite keeper in my ASX share portfolio.

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Small Cap: ASX stock Tassal (TGR)

Well, who doesn't love salmon! It's up nearly 7% and is ticking along. It has a historic dividend yield of 4.5% (again better than any bank deposit) that's paid in March and September. I'll look forward to reading Under the Radar's analysis on it after they report to the ASX later this month (in the period all the analysts call reporting season). I'm happy with this ASX stock too and don't plan to do anything at this point in terms of buying or selling more of this ASX small cap

Panoramic Resources (PAN): Small Cap Miner

This has been a roller coaster, hasn't it! Quite soon after I bought it it was under a takeover offer and it's shares raced up from 30C to over 40c. Our share analysts all said to take profits/sell, but I didn't think it was worth it because I'd only bought $1,000 worth (3,000 shares) and by the time I paid tax I didn't think it was worth the pain. hmmm. Clearly, I should have followed Under the Radar's share advice at that time and just taken the profits!

It's dropped to 23c and I'm down $276... It's not going to kill me but it is annoying. Our advice now is to sell. I could and take the tax loss but I'm going to sit and see what happens. It was speculative, it always was but I'm going to watch it and see what happens. The share price might recover a bit, it might drop a whole lot more and I might think, just take your loss and recoup the money still there. Lots of Fund Managers call that a stop loss - i.e. selling when you lose say 10%. As I didn't follow our advice to start with, my now? (I'm being flippant here) but really, I'm going to wait and watch, and I might sell. I'm just going to see.

Small Cap: Volpara Health Technologies (VHT)

This is another speculative ASX small cap stock that is not paying dividends but I didn't buy it for dividends I bought it for its growth potential. It's again only a very small portion of my ASX share portfolio at around 6% as I put in around $1,000 again. It's tracking along nicely, no dramatic news either way. It has very cool technology to help diagnose breast cancer and I hope, not just for personal reasons that it takes off. So again, I'm just going to wait and watch this ASX small cap.

What's my next move in my ASX Share Portfolio?

Watching reporting season with genuine interest to see how my company's are performing and to learn about the precise dividends they will be paying this half. Who doesn't love a bit of income. I'm planning to re-invest in it as I'm wanting my share portfolio to grow.

I'm holding my cash and I'll be buying some more small caps and blue chip ASX Shares later in Feb/ early March when normally lots of Buy recommendations come on.

If you are interested in learning more about the mining sector and how to invest in this area, read more here.


5 highest performing Oil Stocks on the ASX

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ABOUT THE AUTHOR

Caroline Mark

Caroline Mark is the Founder and Publisher at Under the Radar Report, which provides independent ASX share research to help build investor’s share portfolio. Under the Radar Report is licensed to give general share financial advice only (ASFL: 409518). The author is not licensed to give personal financial advice and this commentary is for general information only.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

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