CHOOSING THE RIGHT
SMALL CAP SHARES to buy
Small Cap Shares will boost your investment returns. It's much easier for a small company to double or triple in size than for a top 10 company to grow by 5 or 10%. You need to invest in 7-10 ASX listed Small Cap Shares to position your portfolio for growth. Under the Radar Report provides the small cap stock research to help you confidently choose your small cap stocks and we provide ongoing updates advising you when to Buy/Hold/Sell. But how do you choose which shares to buy?
NINE steps to choose which small cap shares to buy
At Under the Radar Report we help ASX investors choose which small cap stocks to buy. Our expert analysts have selected 100 small cap stocks and we have our Best Buys table each week to help you choose which small cap shares to buy
1. How Much Cash do you Want to Invest?
How much cash do you want to invest in stocks? We always recommend that you follow our portfolio structure.
2: Don't forget Your Share Portfolio Structure
Set up your portfolio structure following the basic rules of: cash (0-25%), small caps (20-30%), and big cap exposure with market linked investments/ (50-75%).
3: Where is the Overall Share Market Trading?
Under the Radar Report will provide you with buy recommendations that we believe are strong investments right now. See our Best Buys table in our weekly Small Cap Report. Also, take a minute to think about the value of the overall share market. If you think it’s expensive, don’t put all your allocation for stocks into the market all at once. Or if you think the share market is in a dip, it's a very good time to invest.
4: Best Buys Stock Ideas
Look through our Best Buys talbe plus the week's latest research. It is worth jumping in online and searching the stock to find all the research. It is very easy to do and we keep you up to date on our latest views.
5: Creating your own Watchlist of Small Cap Shares
List 5 or 6 Small Caps Shares that you like and put them on a watch list, along-side another 10 Shares that you are not sure about, but could be interesting. Look at the share charts and whether or not they pay dividends. We list all the forecase dividend yields for each small cap stock we cover.
7: Ratios and what the Averages are
It is good to keep in the back of your mind that the average PE of the market is about 14 times for industrial stocks and 8 times for resource producers. Based on the PE you can get a clear idea whether you think a stock is over or under valued.
8: Small Cap Shares to Buy
Jump in and buy small holdings of those ASX listed small cap shares that you think are right for your portfolio.
9: Keep up to date with our Share Recommendations
Watch your investments like a hawk and keep reading Under the Radar Report for research updates. We always review the company's results in reporting season (August and February) plus at other times during the year when there is news that will influence the share price. Just open the weekly email to see if your stock has been listed.