To find success in small-cap and micro-cap stocks, investors need to develop a sense of the contrarian, enabling them to identify a company’s ability to create value in the future despite its present unprofitability.
This is because so many emerging companies must first fight for and establish durable market share through growth, research or exploration results before net income can turn reliably positive.
Sifting through these seemingly unattractive gems is easier said than done, because retail investors have access to the same publicly available information, and might not possess the wherewithal (or emotional fortitude) to extrapolate the dire pictures it paints into the conviction required to hold on through volatility and benefit from long-term compounding.
To illustrate exactly what I mean, let’s introduce two junior gold miners and a Bitcoin stock Stockhouse spoke with over the past week,…
