The key to success lies in knowing how to both
strive for a lot and fail well.
Ray Dalio

INTRODUCING:

The ASX ‘Barbell’ Strategy

How you could turn 5-10% of your investing
capital into a fortune, while the rest sits
in the most stable stocks on the market

Friend,

Picture owning a portfolio of 20 stocks…

Eighteen of these stocks are big, stable Australian companies, otherwise known as ‘blue-chip’ shares.

These are some of the best-known companies in Australia. They all pay regular dividends. They are the kinds of shares you feel happy to own. Because they rarely tank in value.

The other two stocks in your portfolio are much smaller.

Very few people have ever heard of them. They don’t pay dividends. And their futures are — to be honest — less certain.

But they have incredible potential.

In fact, these two stocks could feasibly multiply your money by five or maybe even TEN times by the end of the year.

The bigger stocks you own don’t have this potential. They are unlikely to grow by more than a handful of percent over the same timeframe.

But you don’t care. You don’t invest in those 18 ‘blue-chip’ stocks for explosive growth.

That’s what the other two are for…

Introducing the ASX ‘Barbell’ Strategy
for making potentially outsized returns
while minimising your risk

Today I want to show you how you could make 90% of all your returns from just 10% of your stocks…

…in a way that limits most of your risk to a TINY portion of your capital.

Sounds like the best of all worlds, doesn’t it?

Here’s the idea — take a look…

The ‘barbell’ theory of investing works on the idea that you have the majority of your capital — maybe 90% or more — in ‘low-risk’ investments (like the blue-chip stocks I just told you about)…

And a much smaller portion of your capital in higher-risk investments.

Nothing in the middle. Hence the ‘barbell’.

The riskier investments, as I just explained, have the potential to make you an outsized return…tens, sometimes hundreds of percent gains, in a short timeframe.

They are what I call ‘asymmetric bets’.

You typically make asymmetric bets on a very specific type of Australian stock called a ‘small cap’.

I’ll tell you more about small-cap stocks in a moment…

I’ll go through the kinds of companies they are…what they do…the qualities that can make their share prices explode...and also why they are the riskiest stocks on the market.

But first I want to show you what I’m talking about when I say ‘outsized returns’.

Check this out…

Okay, let me give you some context here. Between the end of September and Christmas last year, the Aussie stock market dropped by 16%.

On 27 December, a couple of days after Christmas, the market picked up again. It’s been rising — pretty much — ever since.

On 16 May this year, I took a snapshot.

See the blue line at the bottom of this chart? It’s our market — the All Ords. It went up 13% between 27 December and 16 May.

Now look at the green line above it.

That’s a small-cap stock. An ‘asymmetric bet’.

This stock jumped up 137% — more than TEN TIMES what the market achieved — in the same five months.

Now, just to qualify... When we talk about ‘the market’ — that blue line you can see — we’re talking about roughly 20 stocks. That’s all.

Most of the daily traded volume on the ASX — our stock exchange — is in these 20 companies. Many people refer to these stocks as ‘blue chips’.

I’m not going to name all of them here, but I’m talking about BHP, Commonwealth Bank, NAB, Macquarie Group, ANZ, Telstra, Wesfarmers, Woolworths, AGL — these kinds of companies.

As you can see, these big stocks did okay between late December and mid-May. A 13% gain in five months is pretty solid.

But our small cap — our ‘asymmetric bet’ — did ten times better than that.

Let me show you another one…

Same timeframe. Same market.

The blue-chip index is up 13%. Our small cap is up 118%.

Here’s another…

This ‘asymmetric bet’ rocketed up 51%. That’s around four times what the market achieved over this same five-month timeframe!

And one more...

This small-cap more than DOUBLED over the same five-month period…

That’s nearly TEN TIMES
the gains the market made

Now, of course, past performance isn’t a reliable guide to the future. But that’s what these stocks have the potential to do.

And I know this because I found, researched and recommended these four ‘asymmetric bets’ to a small group of Australian private investors…

People just like you.

Yes, these four charts I just showed you are actual recommendations I made.

And they’re still all live trades, at the time of writing…

(Which is why I can’t tell you the names of any of the stocks…)

Now, if that whets your appetite, please keep reading.

Over the next few minutes, I’ll show you how you can get your hands on a list of what I believe are the highest potential ‘asymmetric bets’ in Australia right now.

These bets are risky, for reasons you may have already gathered.

Don’t worry — I’ll go through those risks in detail in this letter.

But…if you follow the barbell strategy, because you only ever have a small portion of your overall capital in these ‘asymmetric bets’…

..If something goes horribly wrong — as it can sometimes — your risk is limited to just a tiny amount of your money.

A pain in the backside, for sure.

But not a catastrophe.

I’ll get into all of that in a second.

But first, you need to know…

This ‘barbell’ strategy is not just
something I plucked out of the air

The barbell strategy was made famous by world-renowned statistician and former Wall Street trader Nassim Nicholas Taleb (author of the book The Black Swan, among others). 

Taleb credits the barbell strategy with helping him not only protect his clients’ money during the 2008 financial crisis, but also make a sizeable profit.

Seeking Alpha reports that one of the equity funds managed by Taleb during the GFC made a 115% return amid the chaos.

(I don’t know if you remember, but the US Dow made a 34% loss in 2008 alone. Set against that, Taleb’s performance is seriously impressive.)

The barbell strategy is, basically, a risk-reward ‘trade-off’.

If you follow it, you’d typically put 90% of your cash (or more) in stocks that are unlikely to rocket up…but are also unlikely to blow you up.

And you put the remaining 10% (or less) in these ‘asymmetric bets’ — like the ones I just showed you...

…Stocks that have the potential to contribute the lion’s share of your returns over any 12-month period…but could also go to zero in the worst-case scenario.

(Of course, there are no guarantees with any of the above…and no one likes to lose money… But I’m sure you’d agree that it’s easier to stomach a loss if you’re only risking a tiny amount of your overall pot on these riskier, ‘asymmetric bets’).

So, does this strategy interest you?

Well then, let me be clear about one thing. Then you can decide if you want to keep reading…

I’m not interested in blue-chip shares — the kind you put in the 90% side of your barbell.

I don’t research them. And I don’t recommend them.

There’s no point.

All of the major Australian funds and banks employ scores of analysts who mine data on all the ‘blue-chip’ stocks for their clients.

Mainstream financial journalists and bloggers write about the big Aussie stocks, every day.

These top-20 blue chips are SO widely covered. And because of that, the market already knows everything about these companies.

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

Everything is always priced into the stock. Which essentially means…

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

But that’s okay, remember — because you don’t invest in blue chips for explosive growth.

You buy these stocks for stability, predictability and (most likely) for the dividends they pay out.

Same as everyone else.

You don’t need me for that kind of analysis.

Instead, I offer you something different…

Help with the 10% side of your barbell.

The exciting side.

My job — if you’ll have me — is to find and tell you about the highest-potential ‘asymmetric bets’ in Australia.

I want to help you jump onto those lesser known ‘small-cap’ stocks…with the potential to hand you outsized stock returns…

…while the majority of your capital sits in the same big, stable Aussie stocks everyone buys and holds on to.

How does that sound?

Let me tell you more about the small-cap companies I research...

They are typically listed on the ASX for anywhere between one cent and two to three bucks. Tiny, in other words.

They tend to be innovators...start-ups...or explorers.

They’re virtually unknown because they’re generally ranked outside the top 100 stocks on the ASX. Which means (unlike the blue chips) they typically get no analyst or media coverage.

And yet…

Small caps are some of the highest potential (and most exciting) investments on the Aussie market

I’m not just saying that… I can prove it to you: These tiny stocks rocket up all the time.

Here, let me show you…

This table shows the top Australian small-cap performers during the 2017-18 financial year. (Yes, this is just 12 months of trading activity!)

Now, again, past performance isn’t a guide to the future. But take a look at some of these numbers…and imagine you’d had a few of these in the 10% side of your investment ‘barbell’…

(NOTE: NONE OF THE EXAMPLES INCLUDE TRADING COSTS)

Now here’s where the barbell strategy gets super exciting…

Over the exact same timeframe (the 2017-18 financial year), our blue-chip market — the All Ords — went up by 13.7%.

Okay, I’m pretty sure lots of people would be happy making almost 14% in a year. On a $5,000 investment, you’d make 700 bucks.

That would be sitting on one side of your barbell.

On the other:

A potential SIX-FIGURE PROFIT (in a YEAR)

That would give you some nice options, wouldn’t it?

You could buy a campervan straight off the lot…and take that big Australian road trip you’ve always dreamed of...

You could set up a trust fund for the grandkids...slash a huge chunk off your mortgage...or just throw it all into your retirement savings.

Sounds exciting, doesn’t it?

It’s an investing strategy I’d bet nine out of 10 Aussies don’t even know exists.

(I’ll tell you why I think that is in a moment).

But first, let me explain why the small-cap stocks you put on the 10% side of your barbell have this incredible moneymaking potential…

Somewhat obviously, it’s all to do with their size.

Their pocket-sized presence gives them two qualities that blue-chip stocks don’t have. I call these qualities:

  1. ‘Hyper-Gearing’ and
  2. ‘Information Asymmetry’.

‘Hyper-gearing’ might sound a bit ‘out there’, but actually it’s quite simple to explain...

See, because small-cap stocks are so tiny, it doesn’t take much trading volume to move their price by a lot — up OR down.

Here’s a quick comparison to show you what I mean…

Woolworths — on the left in the graphic below — is a large-cap stock, sometimes known as a ‘blue-chip’ share.

You’d typically invest in Woolworths in the 90% side of your barbell.

It’s one of the largest and most stable companies in Australia.

Its stock pays a regular dividend.

 

(NOTE: NEITHER EXAMPLE INCLUDES DEALER COSTS)

Now, if Woolworths’ shares go up by two cents, big whoop!

As you can see in our example, you’d make one dollar on a two-grand investment.

Now check out the right-hand side of the graphic...

This is a small cap stock…the kind you might find on the 10% side of your investing ‘barbell’.

If a small-cap stock goes up by two cents…it can double your investment in lightning speed.

This is what I mean by ‘hyper-gearing’.

It’s just a question of scale.

Think of it this way.

As much as a company like Woolworths would like to double its stores really quickly, it couldn’t.

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

Like 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 thrilling potential of small caps

This quality I call ‘hyper-gearing’ relates to how a tiny move in a small cap’s share price can have a huge effect on your gains.

And as you’ll see in this presentation, it doesn’t take much to move the price of these tiny stocks by a cent or two.

A positive announcement…or a market tailwind…can often move them by much more than that.

To show you what I mean, cast your mind back to the global financial crisis...

In 2008, the All Ords got pummelled. Stocks fell 43%...all the way to March 2009.

Then, 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, well-known Aussie mining stock, OZ Minerals, did pretty well out of this renewed confidence.

Investors in OZ Minerals would have made an impressive 128% gain in about 18 months. Put another way, they could have turned $1,000 into $2,280.

Not bad at all, for such a big stock.

But in the small-cap sector…you could have invested the same amount of money and had a MUCH BIGGER impact…thanks to ‘hyper-gearing’.

Check this out. I overlaid OZ Minerals’ share price chart with that of a tiny small-cap miner called Sandfire Resources

Over the same timeframe — as you can see here — Sandfire investors would have made a 10,942% gain on their investment.

That’s not a typo. See for yourself… Sandfire is the top line. OZ Minerals is at the bottom.

Yes, this actually happened. And yes, I AM comparing ‘apples with apples’ here.

Sandfire is a copper stock, just like OZ Minerals...

It operates in the same industry...under the same market conditions.

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

And that means any market tailwind tends 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…in around 18 months!

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

I know…the answer is obvious.

But before you get too carried away, let me be clear: As much as I love looking at charts like this, past performance is not a guide to the future.

This doesn’t happen to every small-cap stock on the market.

If that were the case, everyone’s ‘barbell’ would be 100% loaded with small caps.

But that would be madness!

And that’s because small caps are much, MUCH riskier than buying our top-20 blue chips.

Basically, if you have 500 bucks invested in a small-cap company…and the market moves against your position quickly…you can cut that $500 in half just as quickly as you can double it.

That’s why I recommend you only buy WELL-RESEARCHED small caps with a TINY amount of your overall investing capital.

The most important thing to remember when you buy a small-cap stock is that it’s not like buying shares in Commonwealth Bank or Telstra.

You need a different mindset on the 10% side of your ‘barbell’. More of a speculator’s mindset, in fact.

For starters, you don’t hold on to small-cap shares for the long term.

They’re not ‘nest-egg builders’.

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

With small caps, 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 finish line in sight.

The idea is that you make money now...

…to ENJOY NOW.

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

That’s why I love these investments…and why I believe they have the potential to give you the kind of freedom no other stock, bond or commodity can…provided you buy the right small caps, of course!

But you may be wondering…

Why haven’t I heard of small caps before?

Well…how can I put this diplomatically?

Let’s just say that most institutional analysts these days — I’m talking about the guys in the banks and the big funds — 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 upside in covering small shares when you have billions under management.

Why?

Well, a major fund manager simply can’t buy enough of a small company’s stock for it to affect his financial results…and therefore his all-important bonus and reputation.

Last year, wealth management company Perennial released an illuminating study on institutional coverage in Australia.

What they found pretty much explains why you never get to hear about small-cap stocks.

Here are the two big takeaways from Perennial’s report:

Look, I get it.

Blue chips are where the volume — and therefore the money — is for the banks and big institutions.

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

But what about you? How do YOU make money?

Well, by far the best way I know for the little guy to do well in the stock market is by using some form of the Barbell’ Strategy.

Now, I don’t know you personally…and there’s no way I could know, let alone consider, your circumstances. So, you need to think this over very carefully before you decide if it’s something you want to do.

But here’s one idea…

You could stick 90% of your capital (or more, depending on how risk-averse you are) into these big, well-covered, stable Aussie stocks that pay dividends.

And 10% — or less — into a handful of well-researched, tiny small-cap companies, selling for a few cents a pop.

Companies that — in a few years’ time or maybe even a few months’ time — could easily be household names...with a share price of $50 or more.

That way, your biggest risk is limited to only a tiny amount of your overall capital...BUT you get exposure to some of the highest-potential stocks in Australia.

So, how do you get to hear
about small caps now?

You get on my mailing list!

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 tiny Australian stocks for the 10% side of your investing barbell…

It’s called Small Cap Alpha.

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

I tell my readers which Aussie small caps to buy...at what price...what to expect...what the key risks are...and, crucially…

…when to SELL (hopefully for a big profit!).

Why do I do it?

Because I believe it’s the ONLY way Australian investors can get an edge these days.

Like I told you, our blue-chip market here in Australia is TINY compared to other major exchanges like the US Dow, the Japanese Nikkei and the British FTSE.

And because we have compulsory super over here, it basically means that every Aussie investor tends to buy the same 10 to 20 big stocks.

And that means everybody gets the same returns as everyone else.

Nobody gets an edge!

Small Cap Alpha 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 a small portion of their capital for the chance to make a much greater impact.

Small-cap stocks also benefit from a second unique quality, something I briefly mentioned earlier, called ‘information asymmetry’.

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

It describes what happens when the market doesn’t yet know something about a company — because it’s not getting any coverage.

That creates a ‘knowledge gap’ (which I can help you exploit).

When that knowledge is made public, the share price can ‘gap up’ quickly. And that gives 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 potentialfor positive announcements is coming, you can take advantage of this ‘information asymmetry’…have a punt…and potentially make a fortune.

Like some lucky investors did when they bought 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 most major bank 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’.

Now, remember, past performance isn’t a guide to the future. But 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...not to mention 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 commercialisation...which opens the doors to potentially huge 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%...

Turning $5,000 into $19,200
in UNDER 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 about this company. 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, this ‘loose-change’ 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!

Of course, past performance isn’t a guide to the future.

But can you imagine putting a small amount of your capital into a small group of Australian stocks with incredibly high upside potential?

The downside?

Well, like I keep saying, small caps are the riskiest stocks on the market.

Even though — if you stick to the ‘barbell’ strategy — you should only put 10% or less of your overall investing capital into these ‘asymmetric bets’, you should still be prepared to lose it, in the event that the market moves sharply against you.

That’s because the stocks I research for Small Cap Alpha subscribers are incredibly price-sensitive and volatile.

Now, don’t get me wrong. I look after my readers.

I put measures in place to help minimise their risk.

But the risk is always there.  And, as I keep saying, it’s much greater on the 10% side of your barbell than on the 90% — or blue-chip — side.

But if your nerves are up to it…

…if you not only understand but embrace this added risk…

It’s your lucky day!

After you’ve finished reading this presentation, I will send you details of all the small-cap stocks on my current buy list, if you’d like.

These little-known stocks are selling for loose change right now...

But as you’ll discover when you read my research, the upside potential for each of these companies is HUGE.

And yet, most Australian investors will never get to hear about these stocks… In fact, most people don’t even know the small-cap market exists!

You know, 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 to a big bank stock just because it’s splashed all over The Australian Financial Review.

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

To me, this is like backing a horse down at the racetrack because you like its name.

This is why most people never get rich from investing in the stock market.

They buy the wrong shares for the wrong reasons!

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

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

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

And thanks to the two explosive growth factors I’ve been telling you about: hyper-gearing and information asymmetry

…when you find a fantastic small-cap prospect few others have spotted…

…you can potentially make a bunch of money no matter what the market is doing.

Even at the moment, when we’re being told by all the dopey ‘doom and gloomers’ that the stock market is on shaky ground, you can still find screaming winners in the Aussie small-cap sector.

There’s one in particular
I absolutely love right now

It’s an excellent little company that manufactures health supplements from hemp.

When I first told Small Cap Alpha readers about this stock back in August last year, hardly anyone knew about this firm.

But I’d discovered that it was about to release funding to expand into the medicinal marijuana market. (Marijuana is one of my big investment themes right now…so that piqued my interest...)

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

Its 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 tiny hemp stock did not. It kept going up.

Check it out…I’ve overlaid my small-cap pick over a chart of the All Ords — right when the Aussie market started falling, from the end of September last year.

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

See…

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

And even when the market is booming, if you want to swing for the biggest returns, it often pays to look for the small caps that are in the best position to capitalise.

Take the recent real estate boom…

Now, typically when house prices are climbing, construction stocks get a lot of attention.

One well-known large-cap company — Brickworks — would have looked like a really good bet during our recent house price boom.

After all, Brickworks calls itself ‘Australia’s best building products company’. Its stock would have looked super-attractive to most.

But it didn’t pan out that way.

See, 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 same time period.

That turns a $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.

Which would you rather?

Again, it’s obvious!

But see what I mean? No matter whether the market is booming or tanking, provided you know what you’re looking for, you can unearth small stocks that deliver explosive growth…

…while limiting your biggest risk to just 10% or less of your capital.

Do you know what just 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.

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 the 10% side of your ‘barbell’, 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...

…and direct a tiny amount of your investing capital into these ‘asymmetric bets’ I’ve been telling you about today.

Now, I’m not saying every small-cap stock I recommend to you will be a runaway winner.

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. So many of them are 50:50 propositions.

That’s why I say:

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

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

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

So if you want to come on this ride with me, I need you to understand a few things about the stocks on my buy list...

  1. They are speculative ‘asymmetric bets’. I’ve done a lot of research to help you understand the risks of every Small Cap Alpha recommendation — and I’ll help you manage the ongoing risk while the positions are live — but I don’t have a crystal ball!
  2. They are ‘hyper-geared’ to news, announcements, rumours and sentiment. Positive announcements tend to send them rocketing up...but negative announcements can send them plummeting down.
  3. This strategy 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. This isn’t it.
  4. Small caps are not for your last $500. You should only invest 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 ONLY buy big-name stocks, give this a hard pass. If you’re a ‘buy and hold’ investor — someone who prefers to invest all their money in large ‘blue-chip’ stocks and leave it there — this opportunity won’t be for you, either.

Still interested?

If so, you could have my current small-cap buy list in front of you in a few minutes.

You’ll see names...ticker symbols...and ‘buy-up-to’ price recommendations.

Click through to my in-depth research on each company and you’ll get a broader description of who they are...what they do...and my analysis of their potential to make you a lot of money.

Each Small Cap Alpha recommendation I send to you...

  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.
  2. 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.
  3. 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.
  4. 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.
  5. 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 as a new ‘buy’ recommendation.

You don’t have to invest.

There’s no gun at your head.

But if I’m right, you could turn a small stake into a booming profit...maybe in the space of a few months.

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!

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.

So…are you ready to get involved?

Here’s how it all works...

monthly issue

Click HERE and I’ll start sending you my monthly newsletter, Small Cap Alpha on a 30-day trial basis.

You are under no obligation to subscribe. This is just an opportunity for 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.

Stick with me, and each month I’ll email you the latest issue of the Small Cap Alpha newsletter.

Each issue will contain at least one new small-cap recommendation.

Two things you should know about my newsletter:

  1. You can buy and sell all the stocks I recommend through your regular Australian broker — whether that’s online or over the phone (whatever your preference is).
  2. My monthly reports are for your eyes only. I INSIST that you keep the contents to yourself. That’s because the stocks I research are SO tiny...and SO sensitive to news, announcements or rumours...that if my report got out, the stocks could quickly rocket up through my recommended ‘buy-up-to’ limits. That means you’d miss out (all of the stocks I recommend only remain ‘buys’ for a limited time — simply because they can move so quickly!)

Then it’s up to you.

It’s your money.

The decision of whether to invest, and how much to allocate within your ‘barbell’, 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.

What I won’t do is leave you to your own devices.

When you become one of my subscribers…

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.

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

They can often bounce up and down in large percentage swings 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 have to pay more transaction fees to your broker to get back in again.

I’m sorry, but 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 capital on each play, based on how speculative I think each recommendation is.

(This is all on the 10% side of your barbell, remember.)

I do this to help you spread your capital risk EVEN MORE.

And if that doesn’t put your mind at rest, you should know:

I will be watching these stocks THE ENTIRE TIME our positions are open

That’s my job!

Look, I WANT you to make money from my research.

I want you to look back on this — on the idea of directing a small amount of your overall capital into a small number of ‘asymmetric bets’ — as one of the smartest financial decisions you ever made.

It’s important to me.

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

Believe me, I know what that feels like.

So, don’t worry. I’m not going to cut you loose the minute you sign up.

If something happens to any of our stocks that I don’t like...or something brews in the market that I think spells bad news for a stock...

…I’ll send you an email right away and let you know it’s time to sell.

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…

I know...pretty good, right?

I mean, how can something that could potentially contribute as much as 90% of all your stock gains over the next 12 months...only cost 99 dollars?

Well, 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 research report...

BONUS REPORT #1:
The Five ‘Big Alpha’ Trends of 2019-2021

In this report, you’ll discover five major trends where I can see big profit opportunities potentially emerging over the next few years…

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 is 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 the small-cap holdings on the 10% side of your ‘barbell’ 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 instant access to my current Small Cap Alpha buy list…

...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 see my buy list so you can begin filling the 10% side of your investment ‘barbell’ ASAP.

Remember, these stocks are hyper-geared to news, rumour and sentiment.

In other words: Any day now, an announcement could fizz across the internet and instantly push these stocks 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 my buy list in front of you in the next 10 minutes and be tucked into a handful of these stocks 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:

...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, if you decide small-cap
investing isn’t for you

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

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

Here’s the deal…

Sign up today.

Pay half price for your first year.

Download your bonuses.

Read my research on the 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.

Fair?

Ready to make a start?

Then...

LET’S DO THIS!!

Click here now to arrange your 30-day trial subscription to 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:

Give Me Access To The
Small Cap Alpha Buy
List 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 10 to 20 stocks – and that’s it. I’m talking about the big four banks, blue-chip miners, major retailers and what have you.

Investors who ONLY 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 called the ‘barbell’ strategy.

And 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, investing a small amount of your overall capital into a handful of high-potential small-cap shares is the last way in Australia for the little guy to get rich.

This is thanks to two things that are unique to small caps:

  1. A quality 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 called ‘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 most exciting part of the stock market...

…while the majority of your cash sits in the most stable stocks on the market!

Now, 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 a copy of my buy list 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 — while limiting most of your risk to a TINY portion of your capital!

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!

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

Sincerely,

Jim Rickards Signature

Callum Newman,
Editor, Small Cap Alpha

Give Me Access To The
Small Cap Alpha Buy
List Right Now

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

PS: Thinking of staying on the sidelines?

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

I’d be willing to bet there’ll come a moment when you realise just how much you could have made this year...simply by making a few well-placed small-cap investments today — as part of your ‘barbell’ strategy.

PLEASE request a copy of my buy list 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 small-cap stocks on my current buy list. 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 2019-2021 and The Alpha Strategy Guide: How to Find 100-Baggers with One of Wall Street’s Legends. 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!

What is the ‘Barbell Strategy’?

It’s an investment idea made famous by world renowned trader and author Nassim Nicholas Taleb. In short, the ‘barbell’ theory of investing works on the idea that you have the majority of your capital – maybe 90% or more – in lower-risk investments (like blue-chip stocks).

And a much smaller portion of your capital in higher-risk investments, like the small caps I research in my newsletter, Small Cap Alpha.

Nothing in the middle. Hence the ‘barbell’. It’s, essentially, a risk-reward trade off. It means, if the worst comes to the worst, your highest risk is limited to just 5-10% of your share portfolio.

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 and email access to our member services team, 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:

Give Me Access To The
Small Cap Alpha Buy
List Right Now

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