Leveraging Emerging Market Trends

Given the benefits of the sector-based approach, why not try to find sectors and subsectors that no one else seems to be paying attention to? That is, newly emerging sectors and subsectors that are starting to build a new market with companies that might not be on anyone’s stock picking radars yet? The idea being that as the new market starts gaining traction with the public, the sector/subsector starts getting noticed by investors, and those companies supporting it start reaping noticeable share price gains. Investors who get in early under this scenario are often in for a wild, profitable ride.

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Lakewood’s Silver Hammer

Typically an investment in exploration companies acts like a leveraged bet on the underlying commodity. A 50% increase in commodity price can sometimes send the best prospects’ share price surging by many multiples.
The beautiful thing about Lakewood’s (CSE: LWD; OTC: LWDEF) Silver Hammer assets is that while it offers leveraged exposure to the potential upside in silver prices, it also has several buffers in place mitigating exposure to the downside.

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A Quick Guide to Investing in Microcap Mining Company Stocks

Along with following the lead of mining industry experts, we seek out mispriced risk that is underpricing the assets and offering us bargain-basement share prices. This can often happen when a microcap mining company is starting to ramp up operations and releasing initial exploration results. In many cases, the share prices of such companies can be subdued during these times due to capital-raising induced dilution and investor hesitancy. Such hesitancy is typically fostered by investors thinking that it’s too early to jump in and that there will be plenty of time to get in once the company offers more definitive proof of their claim(s)’ value. Not that such thinking can result in a case of missing out in the blink of an eye, but an earlier entry can definitely prove far more profitable than jumping in when news drives the investing herd into play.

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Upcoming Share Unlocks: What to Do and How to Know

As noted in our blog, “Share Structure: Using it to your Advantage,” locked up shares and their subsequent unlocking affects available float and trading liquidity. In fact, the available float in many microcap companies is kept artificially low during the first six months to a year after an IPO due to lock lock-up agreements. This can help boost share price gains during the early days, but can put the brakes on momentum when shares are unlocked.

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