The markets are in upheaval.
Stocks are taking a bath.
At least, that’s what the mainstream press would have you believe.
Yes, stocks have moved up and down a lot more in recent weeks.
But it only seems that way because we’ve just enjoyed a long period with few violent moves.
Free Reports:
When volatility picks up, you don’t have to fear a choppy market.
Especially not if you’ve peppered your portfolio with certain companies. Those with the potential to beat the market, hands-down, year after year.
But how do you pick these champion stocks before they burst out of the blocks?
Let me show you…
It can come at any time.
An unknown or unloved stock surges from zero to hero in a matter of days.
When a small-cap stock hits the big time, its share price can balloon by 800%, 900%…even 1,000% or more.
Every time this happens, patient investors who stayed the course turn into millionaires…practically overnight.
But more often than not, these cracking small-cap victories go unreported by the mainstream financial press.
Most finance journos keep busy fretting over 1% moves in overnight markets. They’re oblivious to the gigantic wins Aussie investors are enjoying right under their noses.
It doesn’t matter whether the market goes up, down or sideways…as long as the earth keeps turning, small-cap stocks will keep giving investors big wins.
That’s great if you invest in these companies at the right time.
But sadly, most private investors look at stocks through the rear-view mirror.
They wait for company-making announcements before considering buying speculative shares.
That approach will never make you rich.
To reap those massive quadruple-digit percentage gains, you need to get ahead of the game.
And I’d like to show you how.
This time last year, Redflow Ltd [ASX:RFX] was just another small-cap hopeful.
Or so it appeared to the untrained eye.
Redflow develops zinc-bromide flow batteries. These cutting-edge units are an ideal way to store intermittently generated renewable energy. That’s because they can achieve an especially deep daily charge and discharge.
As is the case for many tech companies that focus on renewable energy, the market refused to rate Redflow highly without evidence of sales contracts.
Well, in May this year, the market got a sniff of that evidence…and Redflow started its steady march upward.
After Redflow announced a supply agreement with a Philippines-based telco provider, the stock started to rock. It went from 10 cents per share in mid-May to 38 cents in mid-September.
Even after pulling back in October, Redflow shares have brought shareholders a whopping 279% yearly gain.
But if you had looked closely enough, you could have spotted this news coming and intercepted the gains.
In January, Redflow announced a manufacturing partnership with a global tech giant.
And in February, the company told the market that its product was ready for commercial production…and that its sales pipeline was robust.
These kinds of signals reveal a small-cap stock that’s ready to erupt.
Intercepting the company-making news could have quadrupled your money.
But even that’s small fry compared to what could be possible…
One year ago, this small-cap stock was bombed out and stuck in the doldrums.
Like Redflow, Structural Monitoring Systems plc [ASX:SMN] is an innovative tech upstart. It has spent several years developing products that test and measure the structural integrity of materials that are subject to operational stress and fatigue.
Unless you’re an engineering buff, this stuff isn’t glamorous…but it’s mission-critical for heavy industrial companies around the world.
Given the run we’ve had with air disasters, airlines are acutely interested in processes that can detect and monitor cracks in passenger jets.
At the end of October 2013, Structural Monitoring Systems announced a partnership with Delta Air Lines Inc [NYSE:DAL]. Delta would install the company’s tech on a number of its aircraft.
Since then, Structural Monitoring Systems has kept its foot on the gas in its race to commercialisation.
This has sparked a run on the shares from 4.3 cents one year ago, to 60 cents last week… a titanic 1,295% gain.
I don’t care who you are…that kind of profit could change your life.
And if you’d spotted the early indications that Structural Monitoring Systems was ready for the big time…you could have ridden those gains all the way up.
Of course, the signs look obvious in hindsight. The real trick with small-cap investing is having the foresight and gumption to take a position in stocks like Redflow and Structural Monitoring Systems before the great news breaks.
That’s what I bring to my readers in Australian Small-Cap Investigator.
I pick the cream of the small-cap crop…the stocks with the potential to bring you gains as big as the ones I just described.
Two more of the stocks I recommended have just taken off in the past week.
I can’t promise you that every one of our stock picks will explode like Redflow and Structural Monitoring Systems.
Investing in speculative small-caps is risky, and you should never back one with more of your cash than you can afford to lose.
But my carefully-honed technique puts you in the box seat to benefit.
If my forecasts prove accurate, these picks can bring you gains so large that you’ll wonder why you ever worried about 1% moves on the stock market.
Cheers,
Tim Dohrmann+
Editor, Money Morning
The post How You Can Intercept Big Gains on the Stock Market appeared first on Stock Market News, Finance and Investments | Money Morning Australia.