Some investments can be overlooked just because of their small size. But don’t make the mistake of ignoring the little guys, like Nano-cap companies. Returns can be extremely rewarding, and less competition for the stocks can help you, because more thinly traded stocks can mean lower volatility.
To identify the best characteristics in Nano-cap stocks that might put you ahead of the game, make sure you use the right analytical tools, like the Weiss ratings stocks screener.
We used it to review 3,929 stocks with a market cap under $50 million. Most of them, 82 percent, were a SELL, rated either D or E, 17.5 percent were a HOLD with a C rating, and only 21 (0.5 percent) were a BUY, either A or B rated.
Most of these 21 BUY Nano-stocks are very cheap, with only one exceeding the $10 per share mark. But regardless of their size and cheap price, they performed quite well in 2016, and if you had invested in a few of these, you could have had up to 100 percent in returns. Consider buying these smaller stocks if they fit with your financial strategy.