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Why I Love Small-Cap Stocks

For anyone who has been following my newsletter for any length of time, it should come as no surprise that I like small-cap stocks.

These are stocks from companies with market capitalizations that typically fall under the $2 billion mark.

Major, mega-cap players like Google and Apple are great companies

But you’re just not going to get rich buying them right now…

They’re just too big already.

And especially in this current climate, it would be nearly impossible for a multi-trillion-dollar company to rise by 10X this year.

Those types of moves are typically only found in small, off-the-radar stocks.

These are the kinds of stocks I like to focus on.

How You Could 10X Your Money 

As an example, a few years ago, I recommended an innovative lithium mining company called International Battery Metals (RHHNF).

I had the opportunity to meet the CEO and CFO of this company at a conference and liked the direction they were heading.

After doing some research, I soon became so interested in this company that I even told my older brother about it, suggesting he might want to pick up a few shares.

Folks, he texted me this screenshot last week…

My Brother’s Trading Results in International Battery Metals (RHHNF)

He’s up just over 1,100% on the trade!

At the time of purchase, RHHNF was a micro-cap stock valued at less than $300 million, with shares trading for just 28 cents.

Look at it now!

But make no mistake… These low-priced stocks can definitely be risky and, as such, you don’t want to go putting your entire retirement account in them.

However, if you’re looking to put some “risk dollars” to work, you can find the occasional homerun trade like we did with RHHNF.

More recently, here’s another one of these small, under-the-radar stocks that caught my attention just this week…

The Next Big Winner?

The company is FAT Brands Inc. (FAT).

It owns a portfolio of 17 fast, casual dining franchises across the country, including Johnny Rockets, Marble Slab Creamery, Twin Peaks and Fazoli’s.

Now, I’ve done a bit of “research” in at least a half-dozen of these locations, and I’ve left each and every one of them fat and happy, so I think I know what I’m talking about here…

And based on how the chart is currently setting up, investors could soon be happy as well!

Weekly Chart of FAT Brands Inc. (FAT) — Source: TC2000

In the weekly chart of FAT above, you’ll notice price action compressing into a tight, shallow range.

Volume is also drying up, which tends to be a sign that sellers are no longer coming to market.

Here’s the action on a daily chart…

Daily Chart of FAT Brands Inc. (FAT) — Source: TC2000

If FAT can break out of its trading range and make new highs, there could be healthy upside for those who got in early.

With that in mind, I suggest keeping an eye on the $13 level.

There are a lot of trapped buyers who bought into the momentum in this price range, so I would expect that to see initial resistance in that area.

I’ll continue to monitor this idea going forward, so stay tuned.

Embrace the surge,

Ross Givens

Editor, Stock Surge Daily

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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