I am not a registered investment advisor with the SEC. Nothing in this video, should be taken as legally binding investment advice, in the same way that SEC licensed stockbrokers can advise their clients. I am not “selling” any stocks or OTC penny stocks as a broker in this video. The purpose of this video, is only to offer guidance to those who are interested in educating themselves, about self-directed investing and Biblically Responsible Investing (BRI).
UPDATE: 2/5/23 – Its hard to beat a microcap screen like this one. I can say that a number of these have been populating in the Finviz microcap screens in the past few weeks. All the more validating to see Value Line saying the same thing:
An interesting screening result, based on the somewhat Lynch concept, of selecting brand new, small, but fast-growing companies that have made some crazy sales in the recent past (One Up on Wall Street, chs. 10, 12). I’m sort of confused why Rite Aid and Yellow popped up though (the annual reports may indicate that while they are making sales, these older companies’ assets may be declining, and their long-term debt may be increasing):
UPDATE: 2/5/23 – These would be more of Peter Lynch type growth stock screens, but sales growth are factored into both:
Remark Holdings (MARK) would definitely be the type of growth stock that Peter Lynch would buy, because in the past three years or so, it has been INCREASING ITS “CASH” ASSETS and DECREASING ITS LONG-TERM DEBT. You can find this on the “Financial Statements: Balance Sheet” of a stock on Value Line and the “Financials: Balance Sheet” of a stock on MarketWatch.
UPDATE: 2/6/23 – If you could accumulate as much as $20,000 and put it all into ZIM Integrated Shipping Services (ZIM), and hold it for 5 years straight, then TipRanks predicts you would have $2 million in 5 years.
UPDATE: 2/7/23 – I think this would be a very Lynch type stock screen when applied to short-term trading in microcap stocks. After reading chs. 14-15 in One Up on Wall Street about the fast growers, I came to this conclusion for screening stocks on Finviz.com:
1. Market Cap: -Micro (under $300mln).
2. EPS growth qtr after qtr: over 10%.
This simple method assumes screening out short-term trading stocks which are in the expansion phase of the fast-growing small company. It assumes that the company is at least growing at 10% profitability every quarter (or every three months). This means that they are increasing their cash position and decreasing their debt from business loans. The result of this screen populates the majority of the Top Gainers on the whole finviz.com website, while at the same time increasing the trader’s chances with the odds, by reducing the total number of stocks to choose from, down to 827.
A stricter EPS growth screen for short-term trading. The next step would be to confirm on their stock’s balance sheet, that their cash assets are increasing and their long-term debt liability is decreasing, on Value Line and MarketWatch:
UPDATE: 2/10/23 – I’d have to believe that if you bought just one share for all of these microcap stocks, just for monitoring purposes, then you would increase your odds of winning what Peter Lynch calls a few “pleasant surprises” with “tenbaggers” (One Up on Wall Street, pp. 242-243). This screen assumes all of the stocks are: 1. Under $300m Market Cap (Microcaps). 2. The stock price is under $10 which gives it plenty of room to grow by an upward price movement. 3. The price change is up at least 1% green every day. 4. The stocks are all in the USA (higher SEC standards and no communism). 5. Quarterly sales growth is above 30%. These are five criteria for, I would have to imagine after having read 90% of Lynch, a list of very strong short-term stocks that could become potential tenbaggers. As you can see a fourbagger populated at the top of this screen–OUT OF A TOTAL OF ONLY 54 STOCKS TO CHOOSE FROM. Except for the gambling, abortion drug, LGBT, and porno companies, even if I owned one share of 90% of the stocks on this list–my odds of landing a three, four, five, six or sevenbagger, or higher are pretty good I’d think.
Then again: this screen might increase the odds of winning a tenbagger even more. Disregard the gambling stock. The stock price of HCPO gradually increased a few pennies, and then dropped, with a “pleasant surprise” of 400% on 2/8/23. The stock price of EIGR has been gradually increasing by pennies and eventually to a $1 increase recently. It seems like it would be just the kind of stock for a “pleasant surprise” of dramatic gain in the future.
But a screen like above might be too restrictive for those who want to buy a mess of penny stocks to spread across their portfolio for monitoring. So, you could just go with this and buy 200 penny stocks with it:
Recent bigbaggers have been the following:
1. HPCO – 482% on 2/10/23 – Industry: Drug Manufacturer – USA – Market Cap: $111m – Price: $4.40.
2. MSGM – 713% on 1/31/23 – Industry: Electronic Gaming – USA – Market Cap: $150m – Price: $21.
3. VS – 247% on 2/1/23 – Industry: Software: App – Canada – Market Cap: $1.23m – Price: $2.12.
4. BGXX – 228% on 2/1/23 – Industry: Healthcare – USA – Market Cap: $89m – Price: $1.72.