Here is why it pays rich if you track earnings of Small-caps?
One can rake in the mullah by simply tracking the earnings of small caps and micro caps.
Smart investors and experts always advise investors to track earnings, earnings and earnings – if you want to understand which stock will outperform and make you rich. Tracking earnings is a habit that one must inculcate at the early stage of his or her investment career. Someone, who is new to the market, might question the logic of tracking earnings when there are so many other alternate methods and techniques to beat markets. No matter how tech savvy (AI/Automated trading/Algo trading etc...) the whole investing game becomes the old method of tracking the earnings is indispensable. The edge, an investor gets by tracking earnings over the investors who do not, is huge and can often explain the difference between winning and losing money in the markets.
One can rake in the mullah by simply tracking the earnings of small caps and micro caps. Simply by entering or buying a small-cap or a micro-cap based on its outstanding results can produce market beating performance. Quality earnings growth for little researched small cap sand micro caps can make a powerful impact on the stock prices.
The below table highlights the outstanding results experienced by small-cap companies and explains its impact on stock prices once the results were declared:-
Sr. No
|
Small caps
|
Results date
|
Returns (%) since results
|
1
|
Somany Ceramics
|
16th June
|
22.49
|
2
|
Globus Spirits
|
14th June
|
44.5
|
3
|
Tips Industries
|
14th June
|
22.51
|
4
|
NRB Bearing
|
2nd June
|
13.15
|
5
|
Rupa & Co
|
31st May
|
15.76
|
6
|
Action Construction
|
28th may
|
32.43
|
7
|
Godavari Power
|
25th May
|
38.42
|
8
|
Sarda Energy
|
22nd May
|
18.19
|
9
|
Man Infra
|
19th May
|
37.51
|
10
|
Shakti Pumps
|
17th May
|
46.18
|
11
|
Automotive Axel
|
14th May
|
30.23
|
12
|
Raj Ratan Global
|
24th April
|
48.83
|
*Date as on 18th June
The important message here is to use whatever analytical tools one can to identify stock idea, however one should never ignore tracking the quarterly earnings!