** ATTENTION SPECULATORS **

Are these the five most
under-priced small stocks
in Australia right now?

Maybe. But not for long...

Friend,

These may be the five best stocks to own in Australia right now.

They’re excellent companies.

Likely to be household names soon.

Buy them now...and even if just one of them pops, you could double or triple your money in the space of a few weeks.

But I think you should buy all five — if you can. (As soon as you can.)

You don’t need a truckload of money to invest.

In fact, let me tell you something about these five stocks:

Right now, they’re selling for up to HALF THE PRICE of what they were this time last year.

NOT because they’re bad companies.

In fact, they’re WONDERFUL companies.

They’re all working hard to break out in their respective industries. They’re all generating revenue. Their prospects are as bright as sunshine on the ocean.

So, why so cheap?

I’ll explain...

Last year, from the end of September until around Christmas, the Aussie stock market nosedived.

It fell 16%.

Now, I’m not one to panic, but even I was a little worried by this.

I mean, this three-month drop was a biggie.

It sent the All Ords down to its lowest level in two years.

In fact, thanks to this meltdown, the Aussie market had its worst year since 2011.

So, what happened?

And more importantly…why is this GOOD news for these five stocks?

The market has handed you an OUTSTANDING moneymaking opportunity (but you need to grab it ASAP...)

As soon as I realised what was actually happening, I immediately started looking for opportunities to ‘buy low’.

That 16% drop was, in all likelihood, what I call a ‘technical selloff’.

A technical selloff — while still scary for investors — is not driven by the performance of individual companies.

It typically happens when a bunch of institutional traders all exit ‘long’ positions at the same time after a ‘support level’ is breached.

This pretty much happens automatically.

The market dips below that support level…and then stocks are sold en masse by big institutions.

All this selling drives share prices down... As far as I can see, through no fault of the individual companies.

Let me put that more clearly:

It had more to do with general sentiment...growing concerns about the economy...Donald Trump’s trade war with China...Brexit in the UK...and Australia’s Royal Commission into the banks.

In other words, the doom and gloomers put the fear of God into everyone.

Investors got spooked. And they started selling.

The more they sold, the more stops got triggered.

Then…the market cracked it.

In 10 years of analysing markets, I’ve learned a) to look for the news stories that trigger high-volume selloffs, and b) never to make hasty decisions based on panic.

Bottom line: I never worry about ‘technical selloffs’.

On the contrary, I LOVE them.

They create hundreds of CHEAP STOCKS.

Essentially, you have been handed the equivalent of the Boxing Day sales… You now have some fantastic stocks selling at up to half the price they were this time last year!

So...who’s ready to go shopping?

In case I didn’t make myself clear...

Despite what you might read in the financial press, this is NOT the end of the world, my friend.

In my view, what we just saw was a simple correction.

And while the flood back into stocks hasn’t happened yet, the rumblings have started…

The market has bounced since January already.

This is an excellent opportunity for you to ‘buy the dip’ — and get your hands on five small stocks that, in my opinion, are likely to become huge...

...and not just that: You get to buy them at a ‘technical selloff discount’ of up to HALF PRICE.

I’ll get to the other three stocks in a moment.

But that’s essentially what a ‘technical selloff’ does.

It lowers the tide for ALL stocks, regardless of industry...earnings...profits...or management.

And, assuming all other things remain equal, it creates under-priced stocks...

...and a tremendous buying opportunity

Of course, not all Aussie stocks will rocket back up after this correction. Some will rise slowly. Some will stagnate. Others will fall.

The stocks I specialise in — like the five I want to tell you about today — are renowned for shooting up quickly after market downturns.

They’re called small-cap stocks.

Small-cap stocks are tiny companies with market capitalisations of between $50 million and about $500 million.

They tend to be innovators...start-ups...or explorers. And they’re typically listed on the ASX for anywhere between one cent and two to three bucks.

Because of their tiny size, it doesn’t take much trading volume to move the value of a small-cap company by a lot — up OR down.

Here’s the logic…

If Woolworths’ shares go up by 2 cents, big whoop!

But if a small-cap stock goes up by 2 cents…it can double your investment in lightning speed. Here’s the idea:

(NOTE: NEITHER EXAMPLE INCLUDES DEALER COSTS)

Woolworths — on the left — is a large-cap share, sometimes known as a ‘blue-chip’ share. It’s one of the largest companies in Australia.

At $30.36 a share, Woolworths is probably not going to double in a week.

In fact, there’s little chance of any blue-chip share going up by any more than a handful of percent in the short term.

Sure, they may pay a small dividend a couple of times a year. But if you’re looking for stunning profits, forget it.

Think about it…

As much as David Jones would like to double its stores really quickly, it couldn’t.

But consider a smaller operation — one you’ve never heard of...

Say, for example, you invest in a tiny mining supplies company with just three customers.

The company only has to add another three customers and it’s doubled in size!

Imagine you had a few bucks tucked into a stock that doubled in the space of a few days...

That’s the potential of small caps!

But a quick note of caution...

What gives small caps this ‘hyper-gearing’ quality is also what makes them the riskiest stocks on the market.

Put another way: Woolworths is also unlikely to HALVE in a week!

I’ll come back to this later. It’s super important.

And it’s why, if you want to buy my five ‘under-priced’ small-cap gems today, you’ll need my guidance to help you manage the risk that goes with this kind of investing.

All good so far?

Okay. Then let me quickly introduce myself…

My name is Callum Newman.

I’m a professional stock analyst and investor.

I write about Australian stocks every day the markets are open. Have done for most of the last decade.

These days, more than 20,000 Aussie investors read my daily market notes.

I also write a monthly newsletter that specialises in unearthing these tiny Australian stocks.

It’s called Small Cap Alpha.

Every month, I research and recommend high-potential small-cap stocks to a small (but fast-growing) group of private investors.

I tell them which small caps to buy...at what price...what to expect...what the key risks are...and, crucially, when to sell.

Why do I do it?

Several reasons. But in a nutshell, our blue-chip market here in Australia is relatively small.

Thanks to compulsory super, every Aussie investor tends to buy the same 10 to 20 big, boring stocks.

And that means everybody gets the same returns as everyone else. Nobody gets an edge.

My readers get the chance to do something different.

Not radically different.

Small caps are still Australian companies.

They’re listed on the Australian Stock Exchange. They’re taxed and regulated according to Aussie laws. They’re freely bought and sold.

They’re just WAY smaller...and not as well-known.

But that gives them this ‘hyper-gearing’ quality...and that can help my readers invest for much greater impact.

That impact can be even bigger after a market dip...like the one we just had.

Let me show you an example...

Cast your mind back to the global financial crisis...

In 2008, the All Ords got absolutely smashed.

Stocks fell 43%...all the way to March 2009.

That was the bottom. Check it out…

After March 2009, investors started buying again.

China began spending big on infrastructure projects. These projects required a lot of Aussie natural resources.

So, investors loaded up on mining stocks.

Smart move!

One big Aussie mining stock, OZ Minerals, did pretty well out of this renewed confidence.

Investors grabbed armfuls of the ‘blue-chip’ stock following the March low — and held on while the mining boom took hold.

Another smart move.

Turns out, investors in OZ Minerals would have made an impressive 128% gain in about a year and a half.

$1,000 sunk into OZ Minerals would have become $2,280. Not bad.

But in the small-cap sector…you could have invested the same amount of money after the market downturn — and had a MUCH BIGGER impact.

Check this out…

I overlaid OZ Minerals’ share price chart with a little-known small-cap miner called Sandfire Resources.

Over the same timeframe, Sandfire investors would have made a 10,942% gain on their investment.

See for yourself…

Sandfire is the top line, OZ Minerals is at the bottom. Yes, this actually happened:

To be clear, Sandfire is a copper stock like OZ Minerals...

In the same industry...under the same market conditions.

BUT...it has a much smaller market cap.

Meaning any market tailwinds tend to have a much bigger impact on the share price.

How much bigger?

Well…$1,000 invested in Sandfire in March 2009 would have become $110,420.

Now, which would you rather have in your pocket: $2,280…or $110,420?

Here’s another example of a small-cap stock zooming ahead of its blue-chip equivalent after a technical selloff…

For this one, I need to take you back to the end of 2015.

Usually, between Christmas and New Year, investors expect a ‘Santa Claus rally’ in the stock market.

Not in 2015.

Between 27 December 2015 and 7 February 2016, the All Ords dropped by 8.25%, triggering widespread panic…

This sudden drop spooked analysts at the Royal Bank of Scotland so much, they issued an urgent report on 12 January 2016…

They warned the world’s next big crash was upon us and investors should ‘sell everything’ immediately.

I thought this was a load of claptrap and I told my readers as much.

I called it a ‘buying opportunity’.

Turns out, it was…as long as you bought the right small caps!

As I predicted, the market didn’t crash.

It picked up…

By July, confidence had flooded back in and investors were buying again.

This time into real estate stocks.

One such stock — Brickworks — must’ve looked like a good bet at the time.

After all, what do you buy in a real estate boom but ‘Australia’s best building products company’? (Their words, not mine…)

Well, had you sunk $1,000 into Brickworks on 27 July 2016, you’d have made around a 9.6% LOSS, 13 months later.

BUT…had you bought $1,000 of stock in Brickworks’ small-cap equivalent — a great little Aussie company called Fastbrick Robotics

…you’d have walked away with a 757% GAIN over the exact same time period.

That turns your $1,000 investment into $8,570 in just over a year.

Here, check it out on the chart…

The top line is Fastbrick Robotics — the small cap. The bottom line is Brickworks — the blue-chip stock.

Again, same time period. Operating in the same industry…under the same kind of market conditions…

But one hands you a loss…while the other makes you a 7x return.

This is thanks — in large part — to this HYPER-GEARING quality that small caps have.

Now, before you get too carried away, please understand that this result doesn’t happen with every small-cap stock.

For every tiny share that doubles in a year, there are three more that halve.

That’s because their prospects (and their share prices) are typically linked to the success of the ideas they are developing.

For example, if you’re a tiny oil driller...and you buy an asset...and strike oil...you’re going to make your investors a ton of money.

If all you drill is a big hole in the ground, you’re going to make your investors ZERO.

That’s the way it goes with small caps. You really have to know what you’re doing when you buy these stocks.

Luckily, I do. And I’d like to send you FIVE brand-new bargain small-cap tips today.

Please allow me to be blunt:

The sooner you act on these recommendations, the better...

The timing is in your favour right now.

Every day out of the market from this point is a day wasted, in my opinion...because the exact same conditions we saw at the beginning of 2016 are playing out now:

I call the five small-cap companies in my new report the biggest under-priced bargains in Australia today.

Each one got smacked down during the correction at the end of last year.

In my view, they are simply victims of a ‘technical selloff’.

They are now ‘on sale’ by as much as 53% from their 12-month highs.

As I keep saying: This is a GOLDEN buying opportunity.

Right now, you have a limited-time chance to ‘buy the dip’...and load up ahead of the move up I anticipate over the coming weeks.

If I’m right, you could turn a small stake into a booming profit.

Remember: Any market tailwind...or positive announcement...tends to have a much greater impact on small-cap stocks thanks to ‘hyper-gearing’.

(Between you and me... technical selloffs can make you look like a hero...provided you make the right decisions. Imagine, then, that I could help you make not one but FIVE ‘right decisions’ today…)

Interested?

Let me just be clear about what investing in small caps is like…

You don’t hold on to small-cap shares for the long term.

These are not ‘nest-egg builders’.

You won’t be earning any dividends from these stocks.

With these shares, you get in, ride them and then get out…with a view to taking a pile of cash with you!

It’s as fast and thrilling as the turn of a card...or backing a horse that leads the field with the finishing line in sight.

The idea is, you make money now...to ENJOY NOW.

Not in 20 years, 10 years...or even five years’ time.

NOW.

These investments have the potential to give you the kind of freedom no other stock, bond or commodity can.

The downside?

These stocks — as I keep saying — are way riskier than ASX 200 ‘blue chips’.

So, if you want to come on this ride with me, I need you to understand a few things...

This is extremely important.

  1. These are speculative plays. I’ve done a lot of research to help you understand the risks of these five buys — and I’ll help you manage the ongoing risk while the positions are live — but I don’t have a crystal ball!
  2. These stocks are ‘hyper-geared’ to news, announcement, rumour and sentiment. Positive announcements tend to send them rocketing up...but negative announcements can send them plummeting down.
  3. This is not a silver bullet that’s going to solve all your money worries or help put all your grandkids through private school. There are so many people out there who are looking for the next ‘get rich quick’ scheme. I’m sorry to say that this isn’t it.
  4. This is not for your last $500. It’s only for money you can afford to lose in the worst-case scenario. I.e., the market moves against us quickly and sends our shares tumbling.
  5. If you prefer to buy big-name stocks, give this a hard pass. If you consider yourself a ‘buy and hold’ investor — someone who prefers to invest their money in large, established, blue-chip stocks and leave it there — this opportunity won’t be for you, either.

Still with me?

Then let me reassure you:

Just because I choose to cover a different sector of the Aussie market to most of the institutional guys doesn’t mean I don’t work as hard as those folks.

Quite the opposite: I work harder than ALL of them.

Seriously. I invite any Aussie bank analyst to trade places with me for a week. I guarantee they’d tap out after the first morning

I know I work harder than mainstream analysts because most of the stocks I tip in Small Cap Alpha are unknown.

There’s little data on any of them.

In most cases, there are no analyst reports I can request.

I have to find all the figures and crunch them myself.

It sounds like a pain, but it helps lead me to much better small-cap prospects.

I’d much rather draw my own conclusions about a company than get the ‘approved’ spiel from its CEO or PR manager…

And I’d rather keep my own counsel than rub shoulders with every other analyst at all those industry conferences. Those guys only go for the free champagne. They may as well be drinking Kool-Aid, as far as I’m concerned.

I’m not interested in any of that stuff. I’ll do my own analysis, no matter what that entails.

It’s worth doing, precisely because no one else is doing it

When there are fewer eyes on small-cap stocks, you get something called ‘information asymmetry’.

This is the second quality that can light a rocket under a small company’s share price…and it’s my ace in the hole!

Let me give you an example.

Remember at the end of last year when the market was tanking?

A bit before that, in August, I told my readers about an excellent little Aussie-listed stock that manufactures health supplements from hemp.

Hardly anyone knew about this small-cap company.

Through my research, I discovered that it was about to release funding to expand into the medicinal marijuana market.

Marijuana is one of my big investment themes of 2019…so that piqued my interest.

‘Pot stocks’ have been going crazy in the US and Canada…and it’s only a matter of time before the sector booms here, too.

Anyway, I ran my usual due diligence on this firm. I realised it was getting virtually zero analyst coverage. Another good sign.

The balance sheet looked great too. Green lights all the way. The main thing was the exploding potential of this market in the United States…right where this firm has its core business!

So, I wrote up my report and recommended the stock to readers of Small Cap Alpha.

Then the market tanked.

But my little hemp stock did not. It kept going up.

Check it out…I’ve overlaid my Small Cap Alpha pick over a chart of the All Ords — right when the Aussie market started correcting.

My hemp stock is the top line. The market is at the bottom:

Again, remember what was happening at this time?

People were dumping stocks (as you can see with the blue line).

‘Trailing stops’ set by institutional algorithms were triggered.

The institutions began selling in large volumes.

And the market got whacked.

16% was wiped off the value of Australian stocks in three months.

But remember me telling you that this was a ‘technical sell off’?

How it had nothing to do with the health of individual companies?

This — right here — is exactly what I’m talking about.

My hemp small cap powered up 61% while the market got spanked.

This shows you that no matter what the stock market is doing, you can ALWAYS find great little stock stories worthy of a punt.

This is why I love my job…no matter how busy things get!

Now…as I write this, the stock has gone up by as much as 150% since I tipped it…

(I can’t tell you its name because it’s a live, open position. It wouldn’t be fair to my Small Cap Alpha readers.)

My point is…

No matter what’s happening in the market, you could make life-changing money from small caps!

Technical selloffs have the potential to be super-lucrative for small-cap speculators, as I just showed you.

But you don’t always have to wait for a crash for the chance to make big money.

You can find these little ‘pocket rockets’ in any kind of market.

Don’t forget, before the correction at the back end of last year, the All Ords had been steadily going up.

In fact, from July 2017 until July 2018, the market went up 13.7%.

Now, lots of people would be happy making almost 14% in a year.

To me, it’s a little…dull.

Especially because over the exact same time period, the top small-cap performers did THIS...

Slightly less dull, you might say!

So...while the All Ords gained 13.7%, these small-cap superstars were quietly zipping ahead, reaping fantastic gains.

Imagine it…

(NOTE: NONE OF THE EXAMPLES INCLUDE TRADING COSTS)

Do you know what even one or two triple-digit gains inside a year can do to your overall wealth building?

Believe me, when you start making a handful of returns like these, things start changing for you very quickly.

Suddenly, those travel plans you shelved are back on the table.

You could spec-out your home cinema with the high-end stuff...instead of scouring Kogan.com for the cheap equivalent.

Maybe you’re a car nut... I’m not — but I know a lot of Aussies are.

Or perhaps you don’t want to blow your cash so soon after making it.

Maybe you want to sock it all into your retirement savings...or invest a bit back into your share portfolio, now that you’ve got the ‘bug’.

Something else will happen, too.

You’ll get a spring in your step!

See, my invitation today — as strange as it sounds — isn’t just about money.

It’s also about EXCITEMENT...

I’m telling you, it’s all possible when you dare to look beyond the same 10 to 20 ‘household name’ stocks every other investor buys.

It makes me laugh the way some people invest...

They think they’re ‘playing the stock market’ — but really, they don’t have a clue.

They pile in blindly just because a company is splashed all over The Australian Financial Review.

Or they buy a big oil company’s shares because the oil price is going up.

This is why most people don’t get rich from investing in stocks!

They buy shares for the wrong reasons.

And that’s as likely to make you money as backing a horse down at the racetrack because you like its name.

All of this means that some of the best shares in Australia...

...the unknown, unglamorous shares that don’t get any press...

...like the five bargain beauties in my new stock report...

...are available to buy, RIGHT NOW, for pocket change!

Of course, this begs an obvious question...

Why don’t small caps get any coverage?

How can I put this?

Let’s just say that most institutional analysts these days seem to have developed an allergy to hard work.

They want quick answers.

They want to press a couple of buttons on their laptops and print off a ‘report’ they can give to their clients to keep them quiet.

You can get away with this in a raging bull market — when stocks are going up. Then again, I’m pretty sure my three-year-old daughter could pick winning stocks in a raging bull market!

But in a more challenging market, you need to actually do some work!

Problem is, no one wants to do it.

Don’t get me wrong: Institutional analysts aren’t stupid. Far from it.

But there’s little money in covering small shares for them.

Small-cap ideas suit the individual punter…not a super fund with billions under management.

A major fund manager simply can’t buy enough of a small company for it to affect his financial results…and therefore his bonus and reputation.  

Wealth management company Perennial released an illuminating study on institutional coverage in Australia last year.

What they found didn’t surprise me AT ALL.

Here are the two big takeaways:

Look, I get it. That’s where the money is for the banks and big institutions.

And it’s also where — through their fee structure — they can make the most money from their deep-pocketed corporate clients.

But what about you?

How do YOU make money?

Well, not in blue-chip stocks, I’d argue.

See...

Blue-chip stocks have already had their ‘spurt’ by the time you hear about them!

Because they are so widely covered, the market already knows everything about these big companies.

Future earnings...profit projections...possible threats...management turnover...

Everything is always priced into the stock. 

That’s why I don’t cover these companies...because what’s the point?

Where can I give you an edge?

On the other hand, there are hundreds of great little small-cap companies all over Australia that will go on to dominate in their fields.

In a few years’ time — maybe even a few months’ time — some of these companies could easily be household names...with a share price of $50 or more.

But right now, no one knows about them!

This is great news for readers of Small Cap Alpha.

It creates that ‘information asymmetry’ I was telling you about.

THIS, my friend, is where you get your edge.

You can think of ‘information asymmetry’ as a turbo-boost for small stocks.

It describes what happens when the market doesn’t yet know everything about a particular company — because it’s receiving little to no analyst coverage.

That creates a ‘knowledge gap’ that I can help you exploit.

See, when that knowledge is made public, the share price can ‘gap up’ quickly — giving you the chance to make a fast profit in a short space of time.

The knowledge I’m talking about comes by anticipating positive announcements, like:

If you know the potential for positive announcements is coming, you can take advantage of this ‘information asymmetry’…have a punt…and potentially make a fortune.

That’s what happened to investors in small-cap WA miner Dacian Gold Limited...

I first wrote about this tiny stock in January 2016 when it was listed at just 75 cents a share.

I was pretty bullish on junior gold miners at the time...so I did some digging (knowing full well institutional analysts would NOT).

I learned that Dacian had a bunch of cash in the bank and was about to do some ‘intensive drilling’.

I told readers to ‘watch for a break to the upside’.

Look what happened next...

The shares powered up to $3.44 by 9 September...a 359% gain...

Turning $5,000 into $22,950 in under eight months...

‘Information asymmetry’ also led me to tiny Queensland health tech business ResApp Health Limited.

In 2015, ResApp developed a smartphone app for diagnosing respiratory disease.

On 22 February 2016, I wrote that its smartphone app had just been awarded a 95% accuracy rate for detecting asthma and viral pneumonia.

Imagine getting a reliable diagnosis...from your phone!

Think of all the GP visits you’d avoid...and all the time and money you’d save, especially if you lived out in the bush.

I told readers that ResApp had just filed a pre-submission package with the US Food and Drug Administration (FDA).

This is a critical first step on the way to gaining US commercialisation...which opens the doors to potentially unbelievable revenue growth for this firm.

Again, I knew the big bank analysts wouldn’t be looking at this stock.

I knew there was a ‘knowledge gap’ we could exploit.

At the time that I told readers about ResApp, it was listed at 13 cents a share.

Look what happened...

Just seven months later — on 23 September — the stock had shot up 284% to 50 cents...

Turning $5,000 into $19,200...in seven months!

Same story with small-cap lithium miner Global Geoscience Limited.

I first wrote about this tiny firm on 16 December 2016. At the time, it was listed on the Aussie market for just six cents.

Global Geoscience was virtually unheard of by most mainstream analysts.

But I knew what it was.

More importantly, I knew it was exploring for lithium in the Nevada desert...

...right next to the enormous Tesla ‘Gigafactory’ that Elon Musk was building.

More importantly still...I knew — because I bothered to check the company’s announcements — that Global Geoscience had just commenced drilling.

I told readers to ‘keep an eye on this one...

Again...just look what happened:

Within six months, the stock had more than TRIPLED to 19 cents...

That’s a 217% gain...

Meaning a $1,000 investment becomes $3,170...and a $5,000 stake turns into $15,850 — inside half a year!

Stories like these led one of my readers, Paul, to email:

‘Without help from a professional like you, I am an accident waiting to happen when it comes to the stock market.’

I don’t know about that, but I do know this…

Small stocks, like the ones I research every day, could potentially turn a tiny investment into a significant chunk of cash...sometimes in the space of a few months.

This is thanks to two things most investors don’t know about: 

  1. A quality possessed by small caps that I call ‘HYPER-GEARING’. This is exclusive to small-cap stocks because they are so cheap relative to Australian blue chips. It means that any market tailwind (such as a stock market bounce) can have a much bigger impact on a 2 cent stock than on a $20 stock. (Cast your mind back to the Woolworths and OZ Minerals examples I showed you earlier...)
  2. A phenomenon Goldman Sachs has dubbed: ‘INFORMATION ASYMMETRY’. This is what happens when the market doesn’t yet know everything about a small-cap company — because it’s receiving little to no analyst coverage. That creates a ‘knowledge gap’ you can exploit to make a fast profit in a short space of time, when the knowledge is made public. (Like the Dacian Gold and ResApp examples I just showed you...)

Add these two factors together and that’s a pretty potent recipe for making money from the stock market....

Then throw a catalyst into the mix…and you have the potential to see some seriously explosive returns.

Remember that 16% ‘technical selloff’ that just happened in the stock market?

I believe THIS is the catalyst that’s going to send a handful of well-placed small caps through the roof over the coming weeks and months.

As I write this, stocks look to be on the up again after the correction.

Whether this will amount to a huge rally, I don’t know.

Like I say, I don’t have a crystal ball.

But I do know that this creates upward momentum in the market.

And that momentum can ignite ‘hyper-gearing’ in small-cap stocks that have great prospects.

The small caps that have the most to gain from this could well be the ones that were smashed down hardest during the market dip.

Those are the ones I went looking for at the beginning of this year.

And I’ve found FIVE absolute bargains that I believe you should snap up as soon as you can.

Few people know about these companies right now.

But they’re all incredible prospects.

They’re all working hard to break out in their respective industries.

I’ve been tracking these five stocks for months.

I’ve been through their numbers. I’ve read their forecasts. I know what they’re up to.

I know what’s likely to push their share prices higher. And I know WHEN to expect good news.

Now here’s the mouth-watering bit...the bit that would pass most investors by: These five stocks are currently on sale at discounts of 30% to 53% from their 12-month highs.

Friend, there’s a genuine moneymaking opportunity emerging here. I believe these companies are currently...

The five most under-priced small stocks in Australia...

Right now, these five small-cap stocks are flying WAY under the institutional radar.

They’re certainly not what you’d call ‘household names’…yet.

In fact, I’d be genuinely shocked if you’d heard of any of them. But that’s okay — most mainstream analysts haven’t either.

Which is great...because it means you already have the potential to benefit from information asymmetry (as long as you act quickly on what I’m about to tell you).

I’ve written up all of my research into these five awesome companies in a brand-new report called ‘5 Under-priced Small-Cap Stocks to Buy Now’.

I want to put a copy of this report in your hands today.

Now, please understand: This report is NOT on general release.

That’s because these five stocks are SO tiny...and SO sensitive to any price action...that if my report got out, and everybody jumped on it, the stocks could quickly rocket up through my recommended ‘buy-up-to’ limits.

That means you’d miss out (all stocks only remain ‘bargain buys’ for a limited time!).

So, if you do want a copy, I must INSIST that you keep the contents to yourself.

If you can agree to that, let me tell you a bit more about the five small-cap prospects I’ve found for you...

  1. BARGAIN SMALL CAP #1 – This smart little oil producer recently refinanced its debt at a much lower rate. By mid-year, that debt should be well on its way to being cleared. That will give this firm an incredibly super-cheap price-to-earnings ratio. If the oil price rises — which I believe it will — this stock could rocket up thanks to ‘hyper-gearing’. But even more exciting than that: I have reason to believe this company could be a takeover target. If you’re holding a small-cap stock when that happens, it’s as good as a jackpot win. To top it off, this outstanding share is currently on sale at a 30% discount...
  1. BARGAIN SMALL CAP #2 – I honestly can’t believe this small-cap gold miner isn’t more well-known. It is currently exploring in no less than SEVEN high-potential locations... One is in a region that also hosts one of the world’s richest gold mines. Two major gold drilling campaigns have started as I write. The odds tell me that a positive announcement will follow soon...and that could push the share price vertical. It’s madness, then, that this stock is currently on sale for a 37% discount!
  1. BARGAIN SMALL CAP #3 – This tiny Aussie oil firm is about to embark on a HUGE drilling campaign... It’s cash-rich...and has bought up an armful of new leases. One good announcement from this upcoming campaign could launch its share price. And virtually NO ONE is talking about it! This fabulous share is yours right now at a 38% discount...
  1. BARGAIN SMALL CAP #4 – I don’t want to give too much ‘Google-able’ stuff away here...but this tiny tech firm had one of the biggest IPOs of recent years on the ASX. It boasts a billionaire investor among its backers...and its product has the potential to tap a US$14 TRILLION market. No, that’s not a typo. This is one of the biggest opportunities you’ll get to capitalise on ‘information asymmetry’ — because right now, this stock is selling at a ridiculous 49% discount...
  1. BARGAIN SMALL CAP #5 – This is a small tech firm on the verge of rolling out an AI breakthrough worldwide that could change the restaurant game completely. This one has a Wall Street hedge fund digging deep...and major franchises are taking notice. Just one new supplier contract announcement could cause its share price to rocket... And right now, that share is yours for a whopping 53% discount...

Make no mistake: These are five of the most exciting Australian small-cap prospects I’ve ever researched.

In fact, I’d urge you to buy them even if we HADN’T just seen a big correction.

If anything, that market event just makes the timing on these five plays even more perfect.

BUT...I only want you to request a copy of my new report if you fully understand the risks inherent in buying small-cap stocks.

If you buy these five stocks, you’re making a bet that they’ll realise their incredible potential.

As I’ve shown you many times today, that CAN and DOES happen with the best and brightest small-cap prospects.

That doesn’t mean it WILL happen, though.

But these five certainly fit the bill.

Remember: The same sensitivity to external forces that pushes small caps UP can also send them plummeting DOWN.

I give no guarantees that these five stocks will all go up. Nor that they will all go up in a straight line.

Pullbacks WILL happen while you’re holding small stocks. It’s inevitable.

If you buy stocks with the potential to double quickly, you should also acknowledge their potential to halvejust as quick!

One bit of less-than-perfect news comes out of left field and WHAMMO — you’re down 30% before you know it.

That’s why I say:

If you don’t have money that you can afford to lose, don’t even bother

Of course, another way to look at it is that a pullback gives bullish speculators a chance to buy in at a cheaper price for the next leg-up.

That’s exactly where I think we are right now with these five stocks.

Interested?

If so, you could have all the details on these stocks in front of you in a few minutes.

You’ll see names...ticker symbols...a description of who they are...what they do...and my analysis of their potential to make you a lot of money.

You don’t have to invest, remember. There’s no gun at your head.

But at least get a copy of my research report...and read the case for these five small-cap stocks...while very little is known about them...

If you do decide to invest, yes, you’ll be taking a punt.

I’ve been clear about that from the get-go.

But when these punts pay off, you can make a lot of money...

Small Cap Alpha subscriber Gordon says about a previous tip:

I’ve held on for the full distance thus far and with the % increase being 357.45 - WOW!

Rafael emailed to tell me:

Just turned $8k into $20k. Tks man!!

Another Small Cap Alpha subscriber, Ben, emailed to tell me how happy he was with his subscription...

Given the recent price action I am now up 84.20% which is something I have never experienced on a stock before in such a short space of time.’

I have a copy of ‘5 Under-priced Small-Cap Stocks to Buy Now’ right here, waiting to send to you by private email.

All I ask in return is that you agree to review my newsletter — Small Cap Alpha— for the next 30 days.

You are under no obligation to subscribe.

I’m just asking you to take a look for a month.

Within that month, if you don’t like Small Cap Alpha, fine. You can walk away without owing me a cent.

I’ll even let you keep the stock report.

You have to agree that’s a pretty sweet deal. Especially when you consider that you’re getting what I believe to be the five most under-priced small stock plays on the ASX right now.

Want more information?

Let me quickly explain how it all works...

Give me the go-ahead today and, in addition to your under-priced stock report, I’ll also start sending you my monthly newsletter, Small Cap Alpha.

Each month, I’ll send you an eight- to 12-page, password-protected PDF, containing at least one new small-cap recommendation...for your eyes only.

You can buy and sell all stocks I recommend through your regular broker — whether that’s online or over the phone.

I believe each stock I tell you about has the potential to make many times its value within a time horizon I’ll set out for you.

Now, don’t worry...

I don’t just roll the ASX tombola once a month and pull out a 10-cent ‘moon shot’

Each of my monthly stock recommendations is exhaustively researched.

Before I even think about adding a small cap to our buy list, I have five strict criteria that each potential tip has to meet. This is non-negotiable.

Each Small Cap Alpha recommendation...

  1. Must be an innovator… When it comes to shares, the market wants to see one thing…growth. Companies achieve this by innovating in new markets or inventing new ways of doing things. And the smaller they are, the better! That way, they are more likely to go unnoticed and be temporarily mispriced. That’s when we can take advantage.
  1. Must be run by people I can trust… In July 2017, The Sydney Morning Herald ran a story about a Perth-based explorer — where the directors paid themselves almost $3 million in the last four quarters…and only spent $650,000 on company activity. I don’t want to suggest impropriety, but that’s not the kind of stock I want to get you into. I look for companies led by people who’ve been successful before.
  1. Must have a ‘tight register’… The fewer shares a company has on issue, the better. Some small-cap stocks have over a billion shares. This is too high. It means any profit has to be stretched incredibly thin. A large share count tells me they’ve raised money too many times and aren’t generating enough cash. I look for companies with ‘tight registers’. Preferably with insider ownership and/or directors buying.
  1. Must have good financial backing… I tend to recommend small caps that are generating cash. Sometimes I’ll speculate in riskier ‘pre-revenue’ opportunities, if I think the odds are worth it. If I do tip an ultra-high-risk play, I consider how much financial backing that company would be able to find if need be. Think about it: Would venture capitalists put their faith (and capital) behind a mediocre idea? Never.
  1. Must have the potential to take advantage of ‘information asymmetry’… Is there a coming announcement or event that could send a potential tip through the roof? I look for ‘information asymmetry’ that could drive the stock price higher. Imagine owning a tiny pharmaceutical ahead of FDA drug approval…or a little software company before a major takeover...

Once I’m satisfied a stock meets these five criteria, I run the numbers...consider the risks...and weigh up the potential in the stock.

I put all this down on paper and email it over to you.

Then it’s up to you.

It’s your money. The decision of whether to invest — or not — is yours.

It’s my job to make sure you have every relevant piece of information you need in order to make a good decision.

Small Cap Alpha subscriber Sue says:

It’s great to have this type of information. Obviously, not all you will be advising about will do as well as this – but very happy with the 100+% increase to date.

Subscriber Peter says:

I am very impressed with the quality of Callum Newman’s Small Cap Alpha service.  It is superb. Keep it up. Callum’s analysis is very robust and high quality and drives positive outcomes regularly for me.

And here’s something else I do for you, with every tip on the Small Cap Alpha buy list...

I will help you manage your risk in these ultra-sensitive stocks...

Most brokers will tell you to use a ‘trailing stop loss’ when you buy a stock.

Perfectly good advice...but not in the small-cap sector.

Here’s why.

Say you set a trailing stop loss on a huge ‘go-nowhere’ stock — like any of the top 20 on the ASX...

That ‘trailing stop’ will sit a few percent below the share price...

And sit...

And sit...

...until the stock dips below the limit.

Then it will take you out of the position.

That’s its job.

If you set a trailing stop loss on a small-cap stock, however, it will...

Oh wait it just took you out of the market.

In short, you’re lucky if you last a morning’s session before you get booted out of the game.

That’s because...

Small-cap stocks jump and swing around like a 1950s sock hop

They can ping up and down in large percentage moves over the course of a trading day.

Now, a five percent drop might not bother you too much if you’re shooting for 500% gains.

But if that small drop crashes through your stop loss and takes you out of the market...you then have to pay more transaction fees to your broker to get back in again.

STUFF THAT!

Instead, I use something called ‘position sizing’ to sensibly manage risk in your small-cap trades.

(I’ll explain exactly how this strategy works in one of a series of introductory emails you get as a new member of Small Cap Alpha.)

In a nutshell, I suggest investing a specific percentage of your available cash on each play, based on how speculative I think each recommendation is.

I do this to help you spread your capital risk as best as I can...

And to give YOU greater control over YOUR investments

A whipsawing market can make even the most hard-bitten small-cap investor nervous.

Using a tight stop loss, in my opinion, only compounds the anxiety...while prematurely pulling you out of plays that still have big upside potential.

If you want to start getting my monthly small-cap recommendations...

If you can’t do that — trust me — small caps aren’t for you.

I promise: If something happens to the stock that I don’t like...or something brews in the market that I think spells bad news for the company...I’ll send you an email and let you know to sell.

My point:

I will be watching these stocks THE ENTIRE TIME

That’s my job!

Look, I want you to make money from my tips.

I want you to look back on this as one of the best financial decisions you ever made. It’s important to me.

And while I accept that setbacks happen in the market, I want you to be able to nip them in the bud — before they turn into damaging losses.

So, don’t worry. I promise I won’t leave you to your own devices.

I’ll let you know the second something happens that could affect any of the Small Cap Alpha open positions.

I’ll tell you if there’s anything you need to do...whether to sell the stock...hold...or even buy more.

It’s all part of the service you get when you sign up today.

Speaking of which, you probably want to know what you’re getting into, price wise.

Here’s the deal…

A 12-month subscription to Small Cap Alpha costs just $99.

For that, you get everything we’ve talked about today:

All for under a hundred bucks.

I know...you’re probably wondering what the catch is...

How can something that could potentially make you as much as four or five times your money in 2019...only cost 99 dollars?

Well, there isn’t a catch. That’s the deal.

In fact, the deal’s about to get better.

See, when you agree to take a 30-day trial subscription to Small Cap Alpha today, I’ll also send you another urgent research report...

BONUS REPORT #1: The Five ‘Big Alpha’ Trends of 2018-2021

Inside this ‘alpha guide to the future’, you’ll find out exactly where the big profit opportunities lie in the market and how we’ll go hunting for them…

You’ll learn why all the pessimism in the financial markets you read about today is just plain wrong.

It’s all a big distraction that hides the TRUTH about where the world is heading.

And the truth is: There are more reasons to be optimistic and excited about the future than ever before.

This report reveals five major themes I’ll be exploring — and helping you to profit from — in the coming issues of Small Cap Alpha.

It’s yours, today, when you take a 30-day trial.

But guess what?

That STILL isn’t it!

I’ll also send you...

BONUS REPORT #2: The Alpha Strategy Guide: How to Find 100-Baggers with One of Wall Street’s Legends

Virtually every blue-chip stock portfolio in existence is missing two powerful and vital ingredients...

Add these two ingredients to your small-cap holdings and you could SMASH the market over time.

And I mean potentially 100 times over.

That’s no misprint.

I learned this powerful strategy from a good friend of mine — who happens to be one of the smartest (but most humble) guys to ever come out of Wall Street.

This is one of my most treasured investment secrets.

In fact, I toyed with the idea of selling this report separately.

But if it helps you make your decision today, you can have it with my compliments.

So now, alongside your five under-priced stock recommendations…

...you’re also getting two additional bonus gifts designed to help you become a smarter and more successful small-cap investor...

...all for just 99 bucks!

What’s that? Where do you sign?

Wait just one second...

* FLASH DISCOUNT * HALF-OFF your first year with THIS invitation (one-time offer)

Listen, I really want you to have my five under-priced stock recommendations, so you can act on them ASAP.

Believe me, it’s not going to take a lot to move the needle on these stocks.

Any day now, an announcement could fizz across the internet and instantly put these firms out of your price range.

That would be a real kick in the guts, given how close you are right now to making all this happen.

(You could literally have this report in front of you in the next 10 minutes and be tucked into these five plays before the market opens again.)

So, if for some bizarre reason you’re still debating my offer at this point, let me nudge you over the line...

If you reply to this invitation — right now — I can cut your first-year subscription fee IN HALF.

Instead of paying $99 today, there’s an option for you to pay just $49.  

(That equates to just 94 cents a WEEK — all the details are on the next page…)

If you choose the $49 deal, you get: 12 months’ access to Small Cap Alpha...the bonus reports...and immediate access to my brand-new research report: ‘5 Under-priced Small-Cap Stocks to Buy Now’…

...all for less than the cost of dinner for two at Nando’s!

If that doesn’t do it for you, nothing will.

Oh wait — maybe this will...

You can get all your money back in the first 30 days... AND keep all the reports!

Okay, this really IS the last thing I’m going to throw at you today.

Your investment today is covered by a 30-day money-back guarantee.

Here’s the deal…

Sign up today. Choose the deal to pay half price for your first year. Get your copy of ‘5 Under-priced Small-Cap Stocks to Buy Now’. Get all the other bonuses.

Read my research into the five hottest small-cap stocks in Australia.

Invest if you feel comfortable. ‘Paper trade’ if you don’t.

Judge me by whatever criteria you like.

No cancellation or administration fee. No penalties. And no questions asked.

I’ll just put the money straight back onto your card.

You can even keep the under-priced stock report.

In fact, you can keep ALL the reports.

Fair?

Ready to make a start?

Then...

LET’S DO THIS!!

Click here now to arrange your 30-day trial subscription of Small Cap Alpha.

Order now, and not only will you pay half price for the next 12 months...

...you’ll also get all of this, immediately:

...all for just $49 today — if you take the special deal on the next page.

To make a start, click here now:

Send Me My First Five
Small-Cap Tips Right Now

(You can review your order on the next page before commiting)

When you boil it down, your decision today is really simple. If you take the special $49 deal on the next page:

You’re basically spending 94 cents a week for tips that could help you build a small-cap fortune!

Remember, virtually every Aussie investor buys the same boring old 10 to 20 stocks: The big four banks, blue-chip miners, major retailers and what have you.

Investors who do this are completely missing the point, in my opinion.

They’re not investing to make money.

They’re investing because they think they can get a slightly better return from the stock market than they can from the bank.

And yet…I believe the stock market is the greatest moneymaking system ever devised — provided you know what you’re doing and have a plan.

I can’t say I have all the answers.

But I do have a plan.

It’s born from a simple truth: 

You will NEVER get an edge in your wealth building if you do the exact same thing as everyone else.

To me, buying and selling small-cap shares is the last way in Australia for the little guy to get rich.

This is thanks to the twin engines of HYPER-GEARING and INFORMATION ASYMMETRY.

Even though I’ve shown you heaps of examples of this today, I still don’t expect you to take my word for it.

So why not get my five-stock briefing and see for yourself?

If there’s even a kernel of truth in my claim, what have you lost?

And what could you stand to gain?

Picture it...

You open your broker’s app on your phone...and see that the shares you bought in a tiny, unknown company have rocketed up 200% in a morning, because of an announcement no one else saw coming…

All of a sudden, this company is the talk of the financial press.

Investors all over Australia are kicking themselves for not having jumped in sooner. To them, it’s like having the chance to buy Apple shares for $2.50 and passing it up!

But you could allow yourself a moment of quiet satisfaction...

See, not only were you right...but you’ve potentially added thousands of dollars to your trading account!

Friend, this is still in your hands.

But I can’t guarantee for how long...

Roll up your sleeves and GET IN NOW…your wealth isn’t going to grow itself!

Sincerely,

Jim Rickards Signature


Callum Newman,
Editor, Small Cap Alpha

Click the link below now and let’s get started…

Send Me My First Five
Small-Cap Tips Right Now

(You can review your order on the next page before commiting)

PS: Thinking of staying on the sidelines?

If you do, I just know you’ll want to kick yourself in a few months’ time.

I’m sure there’ll come a moment when you realise just how much you could have made this year...just by making a few inexpensive, well-placed investments today.

Worse still, you may have to wait years for another shot at this.

Yes, I know half-price stocks sounds like a weird idea.

But imagine you heard about a bunch of prime, northern Sydney suburbs houses that were suddenly selling for 50% off.

You’d jump on it — before everyone else got wind.

That’s what I’m URGING you to do today...with these five stocks.

PLEASE request a copy of my report today and give Small Cap Alpha a try for the next 30 days.

PPS: Still undecided? Read this…

Quick answers to help you make up your mind…

My goal for Small Cap Alpha is to help you invest successfully in some of the most exciting small-cap stocks on the Australian market — investments most people never get to hear about.

Through your membership of my service, I want you to see that it’s possible to invest a small amount of money and make a booming profit — when a small company that does something smart is spotted...by the market...by deep-pocketed investors...or by bigger companies with acquisition budgets.

I’ve developed this FAQs section because I believe in accountability, honesty and transparency — about what I do and how I do it. Please have a read. I’m sure it will address any concerns you have. If there’s still something you’d like to know, please send an email to customerservice@agorafinancial.com.au.

What will you send me?

First, you’ll get immediate access to the five under-priced Australian small-cap stocks I’ve told you about today. That means you’ll get their names...ticker symbols...a description of who they are...what they do...and my analysis of their potential and the key risks associated with them. You will also get a 12-month subscription to my investment newsletter, Small Cap Alpha. This will cost you just $49 today. Plus, when you subscribe, you’ll also get two bonus reports, titled: The Five ‘Big Alpha’ Trends of 2018-2021 and The Alpha Strategy Guide: How to Find 100-Baggers with One of Wall Street’s Legends. You also get access to the current Small Cap Alpha buy list. Plus, you’ll receive a weekly market update, and every ‘special situation’ research report I publish for the next 12 months.

Is this a scam?

No. I’m real. My publisher is real. We’re part of a publishing group that’s been around since 1979. I am a fully accredited stock analyst, which means I’m able to give general investment advice in Australia. Some people ask if Small Cap Alpha is a ‘pump and dump’ scheme…or whether we’re ‘front-running’ stocks. No. Absolutely not. Quite aside from the fact that I have professional integrity, it is completely against the rules for me to invest in any of the companies I recommend. If I did that, my employment would be terminated and I could end up in prison. I get that people are sceptical. If you are, I invite you to put me to the test for 30 days. You’ll quickly see that this is the real deal.

What guarantees can you offer me?

No one can guarantee you success in the markets. If someone offers you this, run a mile. The stock market is uncertain. There are always risks involved when you buy shares, and you should never invest more than you can safely afford to lose. All I can do is provide the best defence against that uncertainty: Meticulous research. I know as much as anyone about the companies I recommend. And I obsessively monitor every new development in their story.

Can I get my money back if I change my mind?

Yes — within 30 days of the day you subscribe. I will send you my stock research today. You can read it at your leisure. I invite you to judge me by whatever criteria you like. If you get cold feet...or change your mind...or you can’t see my stock recommendations making you money...call my member services team within the next 30 days and you can have your $49 back. In full. No cancellation or administration fee. No penalties. And no questions asked. I’ll just put the money straight back onto your card.

What types of shares will you recommend?

I recommend small-cap Australian shares with strong growth potential. Small-cap stocks are tiny, publicly traded companies that have a market capitalisation of between $50 million and about $500 million. They are typically listed on the ASX for anywhere between one cent and two to three bucks. Small-cap shares can be relatively ‘illiquid’ and sometimes difficult to trade. That makes them riskier than ‘blue-chip’ shares. I will always remind you of this added risk whenever I recommend a share.

How long will I have to wait to see results?

It depends. Small caps are volatile, thanks to this quality called ‘hyper gearing’ that I’ve been telling you about. Some of the stocks I tip could rocket up within a few weeks. Others could take months. And some will take a little longer. Not every share I tip goes up (I wish!). Some will go down. That’s the nature of the stock market. But this is not a ‘buy and hold’ strategy. You don’t hold on to small-cap shares for the long term. These are not ‘nest-egg builders’. With these shares, you get in, ride them and then get out…with a view to taking a pile of cash with you!

Why are you doing this?

I’m not going to insult your intelligence by claiming this is driven by some altruistic imperative to help people get richer. Even though I love it when my subscribers do well, make no mistake: I am well paid by my publisher. What it comes down to is this: I’m not an institutional guy and I would never want to be. I am an analyst. I love digging into a small company’s story and unearthing something no one else has seen. And I’m addicted to the thrill of stock market success. That drives me to find you ever more exciting and unusual ways to get rich. People are far too cynical these days. When I say I love my job, I’m not messing around!

So how do I know that you have my best interests at heart?

I have your best interests at heart because our interests are completely aligned. I only make money if people subscribe to my newsletter. People will only subscribe — and stay subscribed — if they like the research and make money from the tips. If you don’t make money, you will unsubscribe. If enough people unsubscribe, my newsletter closes and I lose my job. Therefore, it’s in my interests to provide excellent research that makes you money!

What if I get stuck?

Don’t panic. When you join Small Cap Alpha, you’ll receive phone access to our member services team, plus a priority email service where you can ask any questions related to your subscription (although we can’t give personal investment advice). Be clear: I want this to work for you. I want you to make a ton of money from my stock recommendations. And I want my service to be easy for you to follow so that it doesn’t take up too much of your time — or fill your head with stress — every time you buy a small-cap stock.

Ready to get started? Click here:

Send Me My First Five
Small-Cap Tips Right Now

(You can review your order on the next page before commiting)