Momentum Letter, Author at The Momentum Letter

Multiple Expansion and Stock Performance

Momentum Letter6 years ago4 years ago07 mins

Simply put, multiple expansion refers to the expansion of a stock’s price/earnings ratio based on investor willingness to place more value on the company’s earnings. This willingness, it needs be noted, can drive the stock price up all on its own. Consider the hypothetical J.R. Ewing Gold Company, which trades at $10 per share on a valuation of 10 times its $1 of earnings. Let’s say investor interest starts driving the share price up, and, even lacking any noteworthy news or developments, the stock rises to $25 and pushes the price/earnings ratio up to 25/1. If you’d been invested in the company at $10 per share, multiple expansion helped you more than double your money.

Drilling Deep: Trillium Gold Mines

Momentum Letter6 years ago6 years ago021 mins

Not only will the addition of this new talent add exceptional levels of mining expertise to help drive successful exploration, but also strongly suggests that Newman Todd and Trillium are worth putting their reputations on the line. After all, such seasoned mining experts would not likely be attracted to or accept key roles in a fool’s gold exploration project.

Determining When to Sell

Momentum Letter6 years ago6 years ago09 mins

The mere thought of selling can often stir one’s emotions even if it marks a grand-slam home run in capital gains. You might find it hard to let go of your position because you’ve likely invested time, as well as money, into it. You’ve gotten to know the company and have probably enjoyed following it on its journey towards success and profitability.

Company Profile

Getting “Green”: Greenlane Renewables

Momentum Letter6 years ago6 years ago022 mins

Biogas industry observers note that a U.S. carbon bill or comprehensive climate change legislation would serve as a national catalyst to “supercharge” the growth of RNG and the biogas industry. While this is highly unlikely under the current administration, a potential carbon-game-changing election fast approaches.

Five Thing to Look at When Initiating a Microcap Company Stock Evaluation

Momentum Letter6 years ago6 years ago013 mins

Few, if any, large cap companies will organically double their revenues within a few years, but plenty of microcaps are always in the running to double, triple, and even grow their revenues 10-fold. After all, those Fortune 500 companies were small themselves at one time, and many managed to make their microcap and small cap investors rich.

Trillium Research Report

Momentum Letter6 years ago6 years ago01 mins

Gilded Explorers: Trillium Gold Mines

Momentum Letter6 years ago6 years ago031 mins

Naturally, if the price of gold is on the rise, whatever the company finds is going to be that much more valuable. So, when a microcap or small cap mining and exploration company hits a new productive strike or ups proven reserve numbers, it’s like adding gold to the stock price—gold that in and of itself is rising in price during fraught times, further boosting the share price.

Company Profile

VSBLTY: Monetizing a New Medium

Momentum Letter6 years ago6 years ago021 mins

Given the company’s rising revenues, exciting partnerships, and apparent reductions in operating costs, we expect to see a significant gearing up on future revenues and subsequent boost to the company’s bottom line.

How to Mitigate Risk When Investing in Microcap Stocks

Momentum Letter6 years ago6 years ago09 mins

By managing risk in this manner with a basket of microcap or small cap stocks, you’re giving yourself the opportunity for one or more big wins—and maybe even that really big 10-bagger—knowing that should the rest of your portfolio end up with one of the other outcomes, you’re still sitting pretty and safely winning the game.

Discerning the Vision, Focus, and Commitment of Microcap Company Management

Momentum Letter6 years ago6 years ago09 mins

What does it take to successfully manage and grow a microcap company? And, as microcap investor, what qualities should you look for when evaluating a company’s CEO and other top management?