Allocators in the volatile small-cap and micro-cap space often benefit from stocks trading at steep discounts to existing operations, simply because retail investors cannot look past their lack of profitability to fully comprehend their established and growing market positions.
This phenomenon is especially notable with leading-edge technologies, whose nascent markets have yet to build track records long enough to establish reliable value creation. Fintech is a key example, with its long list of recent innovations unlocking untapped potential across the industry.
Two fintech sub-sectors with extreme upside – financial education, and cryptocurrency and blockchain technology – are only beginning the climb in their growth trajectories, backed by generational tailwinds set to revolutionize how humans spend and save their money, and stocks keen to capitalize on these tailwinds by filling in market gaps. Here are three picks…
