The landscape of investment assets is rich and varied. Finding the best opportunities for your portfolio always requires mountains of individualized research in order to track with your personal level of risk tolerance, long-term goals, and much more. Yet the best options on the market often share some of the same key attributes.
Finding stocks that are worth investing in comes down to a blend of your personal preferences, goal matrix, and the fundamentals of the companies that you’re considering.
Think small cap for greater profits.
Many investors rely on a key list of penny stocks to buy now for their shorter term investment options. Indeed, penny stocks offer a uniquely powerful opportunity for growth, yet selecting companies that are poised for this explosive takeoff can be difficult for many beginners who lack the experience to see the full picture. Penny stocks are essentially miniature small cap companies that trade around the dollar mark. Because they’re listed on the market (TSX, NYSE, CSE, and others), they are typically companies that have experienced success in their niche, yet haven’t developed the financials to “compete” with some of the larger players.
This competition is crucial to understand because it isn’t centered on traditional market share, but rather financial turnover as measured in P/I ratio and market capitalization. When investing in penny stocks, it’s best to evaluate market cap alongside the financials of the company and the future landscape for growth. This way, you can identify excellent financial moats that suggest a significant price surge. In small-dollar stocks, a single positive event can vault the price by an order of magnitude, whereas in institutional players it would take years of expansive growth to create the same boost.
Invest in established names for great returns.
In addition to the miniature market cap companies, others that are trading at higher values but remain undervalued in the competitive marketplace are a great option for traders looking for excellent gains. Companies like Alamos Gold Inc. (NYSE:AGI) are contenders in the competition for your “business” as an investor. Alamos Gold manages a network of subsidiaries and three active gold mines in Northern Ontario (the Young-Davidson and Island Gold Mines) and Sonora, Mexico (the Mulatos Mine). As well, Alamos is developing a number of other mining operations, starting with a partnership with the Turkish Government to open three new mines in the Republic of Turkey.
The Kirazli project (in Kirazli, Republic of Turkey) offers the greatest potential for growth, as reflected on the balance sheet and stock pricing. The Kirazli mine is poised to offer over 100,000 ounces of gold as a yearly yield figure while clocking in at some of the lowest extraction price per ounce figures in the world.
In addition to expansion of gold mining operation in concert with the Turkish Government, Alamos is working to open mines in the United States, and a new operation in Sonora at La Yaqui Grande (just a few miles from the operational Mulatos facility). Analysts are excited about the mining license opportunities that Alamos is building, as well as the ounces of gold figures that the miner is already bringing in. Selecting companies for your portfolio that share the same high-quality fundamentals as Alamos and other companies like it can provide your portfolio with the much-needed boost in profitability that you’re looking for.
Do your research and peruse second quarter and third quarter announcements in order to assess new investment opportunities (like Alamos) and other dividend and royalties producing stocks listed on the Nasdaq and other exchanges. Make sure you’re always in compliance with your goals and investment strategy for the best possible results.