Here is why it pays rich if you track earnings of Small-caps?

Here is why it pays rich if you track earnings of Small-caps?

Yogesh Supekar

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!

 

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