After 40 years of speculating on microcap / penny stocks, I [Danny Deadlock] am working to reduce my holdings to a small percentage of my portfolio. During covid I made the decision to stop writing my investment newsletter and share my experience by turning MicroCap.com into an educational site. That has been a slow process in 2023 but will improve in 2024.
My investment portfolio now consists of blue chip stocks and real estate but I am hanging onto two of my microcap stocks (Medipharm Labs $0.07 and MOGO $2) in the hope they can still produce solid returns in 2024/25. I would like to wrap up my microcap investing with a couple big hits, but time will tell.
As I approach retirement age I don't want excessive risk. I have had enough of that since the 80's. Microcap stocks can produce exceptional gains but a lot has changed with them over the years. And to be very honest, I cannot stomach dealing with most of the people involved with these companies. There are obvious exceptions, but this industry is driven by greed and the large majority (especially the promoters, financiers and deal makers) think nothing of throwing someone under the bus if they can make a buck.
As someone that researched these companies full time, and wrote about them for 22 years, I have seen more than my share of liars and cheats. Because I had a large audience of microcap investors, they typically told me what they thought I wanted to hear. I had to spend a lot of my time trying to figure out who was lying or grossly exaggerating. More often than not they got rich by taking advantage of other people. This is a cutthroat business with a lot of the roots in Vancouver and Toronto.
Micro Cap stocks education content will start to be added in Q1/24 through a Blog Format. This has been a busy year with other commitments that has consumed 2023.
This micro cap questionnaire I developed over the course of a decade. The questions (in a perfect world) you would want answered before investing in micro cap stocks. This provides excellent guidance.
There is no point re-inventing the micro cap wheel when so much good educational content exists that is specific to stock market investing. Click HERE for a curated list of the better stock market investing websites and video tutorials.
The micro cap industry attracts no end of "characters" and the "ethically challenged". Micro cap stocks can be very rewarding but never lose site of how ugly this microcap business can be. People to avoid are HERE - over 700 names from 2012 to 2023
I have been reducing my exposure to penny stocks but will continue holding (1) Medipharm Labs (LABS:TSX) and (2) Mogo (MOGO:TSX / NASDAQ) into 2024. I will update this page whenever something "useful" becomes available.