In Australia over half of the companies listed on the ASX are junior companies or Mid Cap’s. 1,600 of these companies in total are listed. More than half are from the resources sector, centered in Western Australia. Around 45% of the listed companies and managed investment schemes on ASX’s market were from the resources sector.
Mid to small caps can be seen as a more “speculative” investment, limiting their ability to regularly return to existing shareholders for further contributions of capital. Placements are therefore a crucial source of capital. Analysis of capital raising in 2011 showed that placements provided close to 70% of the secondary capital needs for mid to small caps. Smaller resource companies are typically not revenue producing, do not have access to debt finance or venture capital. They rely on equity capital – and particularly placements – for their funding needs. Placements provide close to 70% of the secondary capital needs for mid to small caps
Mid to small cap resource companies also dominate ASX???s IPO pipeline. In 2011, 108 mid to small caps raised (in total) $3 billion by IPO. The majority of these listed with a market capitalization of less than $25 million.
??? Mid to small cap entities account for 76% of the total number of listed companies
??? They account for 6% of total market capitalization
??? 52% of mid to small cap entities are resource companies
186 companies are actively exploring or producing in Africa alone.
Profit Making Insights:
Know when to sell and not to Sell
The most important thing in stocks is to know when to sell and not to sell the stock he/she holds. With 18 years in the business, a graduate diploma in Geology and having learnt from trial and error Anthony is the right person to provide the advice.
Buy low and sell it at high. Timing is crucial also. Every dog has its day but you don’t want to be tying your capital up in one stock while you miss out on other opportunities.
Buy and Hold
No-one but the broker makes money from trading shares. Buy and hold is the best strategy. Cut your losses on stocks that go down but buy more of the stocks that go up. Cut your losses and run your profits.
Find a good Broker
Most investors do not have the experience to assess risk and what stock is the best stock to buy. It is important to rely on a broker you can trust who has the experience to achieve your goals or at least give you the best chance. Any speculative investing is high risk and providing you are prepared to turn $50,000 into $5,000 or $500,000 then you are of the right mindset. Anthony can give you the proven strategies to yield maximum returns on the investment.