The ETF Effect: Are Index Funds Quietly Killing the Microcap Stock Star?
For more than four decades, I’ve navigated the turbulent, rewarding waters of microcap and penny stock investing. A key tool in my kit was never a complex algorithm or a secret formula, but something far more human: the humble online message board. For years, the activity on forums like Stockhouse served as a reliable barometer […]
How to Value Tech Stocks: A Smallcap Pubco Example That is Just as Relevant to MicroCaps
An Analysis of Asset-Light Valuation: The Case of Enghouse Systems The Modern Valuation Paradigm: Beyond the Balance Sheet An inquiry into how a technology company like Enghouse Systems Ltd (ENGH:TSX $22.27 – 08/07/2025) can command a market capitalization of approximately $1.2 billion with a seemingly modest base of tangible assets strikes at the heart of […]
Baby Boomers No Longer Fuel Penny Stocks… Gen Y & Z Have Little Interest
For anyone who has spent time navigating the challenging but potentially rewarding world of microcap stocks / penny stocks, the current climate feels different. A persistent chill has settled over the junior markets in both the United States and Canada. This isn’t just a cyclical downturn; it’s a fundamental struggle for attention and, more importantly, […]
The Great Divergence: How Momentum Chasing Left Microcap and Smallcap Stocks Behind
Introduction: “Will Small Stocks Stink Forever?” This question hangs over a significant and increasingly neglected segment of the North American equity market. For investors, the long-held academic principle that smaller companies should generate higher returns over time to compensate for their increased risk has felt like a broken promise for more than a decade. The […]
Is Your Penny Stock a Deep Value Gem or a “Value Trap” ?
Introduction: The Allure of “Cheap” in a High-Stakes World In the world of penny stock investing, the hunt for the next multi-bagger often begins with a simple, powerful allure: the “cheap” stock. In this ecosystem, where all great companies started small, the prospect of unearthing an undiscovered gem trading for pennies on its future dollar […]
T/A Tools To Identify a Turnaround
Some investors specialize in identifying stocks that are potentially bottoming out after a prolonged decline or trading near their 52-week lows, hoping to catch the beginning of a new uptrend. Here are some technical analysis (T/A) tools and indicators that investors might utilize when looking for stocks making a potential turnaround: 1. Volume Analysis: 2. […]
Auric Minerals: A Cautionary Tale of Heavy Handed Promotion and Dilution
The saga of Auric Minerals (AUMC:CSE $0.46 CDN – May 2025) serves as a stark reminder of how aggressive promotion, questionable fundamentals, and the potential for insider maneuvering can create a perfect storm for unsuspecting investors. This article will analyze the events surrounding AUMC’s price surge and subsequent collapse, highlighting the tactics used and the […]
Merger Risks Associated with Penny Stocks. An Exro Case Study
Introduction Mergers and acquisitions are often heralded as catalysts for growth and increased shareholder value. However, in the penny stocks space, these events can be a double-edged sword. While they may offer strategic benefits, they can also lead to significant downward pressure on a company’s stock price, particularly in the period following the transaction. This […]
Unmasking Wash Trading
1. Introduction: Shedding Light on a Shadowy Practice Wash trading represents a deceptive and illegal practice within financial markets, characterized by the simultaneous or near-simultaneous purchase and sale of the same security where no genuine change in beneficial ownership occurs. The core intention behind this activity is not legitimate trading but market manipulation: creating a […]
Undisclosed Penny Stock Promotion Payments
The Promoter’s Playbook – How Hidden Payments Fuel Deception At the heart of many penny stock manipulations lies the classic “pump-and-dump” scheme, often supercharged by undisclosed payments to stock promoters, sometimes referred to as “touts.” The basic mechanics involve fraudsters first accumulating a significant position in a low-priced microcap or penny stock. Once positioned, the […]