Free Report: The 2020 Smallcap Guide

Guess Which Stocks Are Rising at Double the Speed of Sensex

Jan 15, 2020

Richa Agarwal, Research analyst

Smallcap stocks move fast!

In fact, they can move much faster than their larger counterparts. It is not uncommon to see smallcap stocks shoot up 40-50% - or even more - within as short as a week. Large cap stocks would be hard-pressed to match their swiftness.

And given the right conditions, investors can make a lot of money out of this tendency.

What are the right conditions?

Chief among these is valuations.

When smallcaps are neglected, beaten-down, and thus available at attractive valuations, the conditions are most ripe for smallcaps to see a rapid and large move upwards.

Whenever that happens, their returns easily leave the rest of the stock market in the dust.

The last time they were beaten down and trading at valuations about as low as they are today, they saw a rapid rebound over the next few months creating massive wealth for investors who bought quality smallcaps.

How Smallcaps Performed After Being Beaten Down in 2013-2014


After having been beaten down for the last two years, the conditions for a large rally in smallcaps are just right today.

Yesterday, in my letter I wrote to you about the signals I see that the tide is about to turn for small caps. And if you want the same confidence you should read about these signals.

And in fact, you can see clear as day that the imminent rally in small caps may already be taking shape.

In just over the last month since 10 Dec 2019, the BSE Smallcap index has already risen double that of the BSE Sensex.

While the Sensex has risen about 4%, the Smallcap index is up almost 9%!

--- Advertisement ---

Announcing Equitymaster's Biggest Wealth Creating Project Ever

We are very excited to introduce you to Equitymaster's Biggest Wealth Creating Project ever...

The Rebirth of India.

The wealth creating opportunity that we discuss in this project is HUGE.

You cannot afford to miss it. For anything.

Sign up today for our MEGA Summit where we will reveal full details about our Rebirth of India project...

Including details of 7 specific stocks that we believe are best poised to ride this coming boom in wealth creation.

All you need to do is, To join this FREE MEGA Summit - click here...
------------------------------

Considering that many fundamentally solid smallcaps are still available at attractive valuations in the market, they have a lot of steam left for them to continue this outperformance as 2020 unfolds.

You see, many of my favourite stocks today are trading at low prices and for no fault of their own. In many strong smallcap stocks, the correction is not because of an issue with fundamentals...but simply because of the wave of market correction.

This is a space where not just the weak businesses but almost everything is down, including great businesses with great futures.

Indeed, good smallcap stocks bought at low prices have the potential to multiply your money like nothing else can.

That's precisely why in my smallcap recommendation service Hidden Treasure, I've been recommending some great quality smallcaps at attractive valuations.

And so, the stage is set. Investors smart enough to pick up quality smallcap stocks today will likely find themselves laughing all the way to the bank in the next year or two.

And I'm making sure my subscribers will be part of that group. I've shortlisted one stock I believe is not just safe in a volatile economic environment, but could provide fabulous gains in 2020 and beyond.

Read more about this stock here and make sure you absolutely do not miss this.

Warm regards,

Richa Agarwal
Richa Agarwal
Editor, Hidden Treasure
Equitymaster Agora Research Private Limited (Research Analyst)

PS: On Tuesday, 21 January, India' #1 trader - Vijay Bhambwani - will reveal a highly profitable, time-tested strategy, to make instant income from the market. Join Vijay at the Instant Income Summit. Register for free here.

Recent Articles

The Next Few Days Are Crucial for Smallcap Investors - And 3 Must-Buy Stocks February 19, 2020
While I have been writing about the rebound in smallcaps for quite some time now... I have shied from the question - When exactly is the smallcap rebound happening. Well, the answer is now.
The Missing Goldmine of Wealth Creating Possibilities February 18, 2020
The neglect that Graham's ideas receive along, of course, with the time-tested money-making potential of those ideas - means that for the few who bother to truly understand and use them, a goldmine of wealth-creating possibilities awaits.
Even the Coronavirus Can't Stop My Market Beating Formula February 17, 2020
Three basic rules i.e. a buying rule, a selling rule and a rule can help manage an entire corpus.
US$2,000 versus US$ 7 Million: A Single Stock That Can Make You a Crorepati February 14, 2020
The story of a single 'One stock crorepati' investment that became the talk of the town...and how you could live that story too.

Equitymaster requests your view! Post a comment on "Guess Which Stocks Are Rising at Double the Speed of Sensex". Click here!

1 Responses to "Guess Which Stocks Are Rising at Double the Speed of Sensex"

Rohit

Jan 15, 2020

What is the name of the stock that you have shortlisted? I could not find it.

Like (3)
  
Equitymaster requests your view! Post a comment on "Guess Which Stocks Are Rising at Double the Speed of Sensex". Click here!