Three Micro Caps Ready to Pop

|August 23, 2021

Micro caps, or petite companies valued at less than $300 million, are becoming all the rage among investors – and I love that. These companies are the underdogs of the investing world that, if played right, can make you filthy rich once they burst forth their true potential.

That’s why I want to start you off with Surgalign Holdings Inc (SRGA). On August 6, 2021, the spine-related micro-cap medical technology company, reported Q2/2021 results that included total global revenue of $24.8 million, which represented a 21% increase over the same period a year ago. Earnings for the quarter were a $0.09 loss, which was considerably better than estimates that called for a $0.12 loss for the period.

Those aren’t bad numbers, but on the same day shares sold off as much as 18.5% in a single session. Since then, though, the stock has rebounded to the upside, filling that initial gap, and then some.

Shares have gained 38.63% since the intraday August 6th lows.

At the current price of $1.24, the stock just broke above its 50-day moving average. That’s a green light for a lot of traders and it’s caught my attention.

At this point, the next support/resistance is at $1.55 and then at approximately $1.90. If it can break through both of those, I could see this stock trading up $2.75, or more, by the end of the year.

If shares of SRGA close above its 50-day moving average (currently at $1.19) I like buying the SGRA January 21, 2022 $2.50 Call (SGRA220121C00002500) for $0.30 or less. I’m targeting a simple double with this trade, and I’ll be happy to close the position for a 100% (or more) profit.

Next up, I’m watching another micro-cap stock, Pharmacyte Biotech Inc (PMCB). The company focuses on developing and commercializing cellular therapies for cancer and diabetes in the United States.

On August 16, 2021, Kenneth L. Waggoner, the Chief Executive Officer of PharmaCyte announced it had become a “Nasdaq-listed company”.

That was enough news to get the internet buzzing, and on August 18, 2021, shares jumped as much as 191.81%, from $3.42 on August 17th, to as much as $9.98 in the very next session,

I’m rarely a fan of these kinds of single day price explosions, and in this case, neither was the market. Shares lost as much as 66.43% in the very next session, closing at $3.48 on August 19th.

Now, though, with the stock having pulled-back, we could see Reddit traders, once again, turn their attention to PMCB in an attempt to create another fast move to the upside.

If shares of PCMB close below $3.00, this week, I like buying the stock (as there are no options available). I’d look to sell the entire position for a 50% (or more) profit.

Heads up. This is a very speculative idea. Make sure you limit your exposure to no more 2% of you risk capital to this idea.

I’m also watching LexinFintech Holdings, Inc. (LX), a Chinese micro-cap stocks currently trading $6.95,

The company “operates as an online consumption and consumer finance platform for young professionals in the People’s Republic of China”.

It’s scheduled to report earnings on Wednesday (before the open), it has a recent history of beating earnings estimates, it has increasing revenue numbers, it has been knocked-down considerably over the last couple months as the Chinese Central Government (CCG) has cracked down US-listed Chinese companies, in an attempt to flex its (the CCG) muscle on the world stage.

That presents us with a potentially highly profitable short-term opportunity.

If LX continues this trend, and beats earnings, we could see a huge pop to the upside as bargain-hunting traders and Reddit-traders swoop in to make a fast profit.

I like buying the LX September 17, 2021 $7.50 Call (LX210917C00007500) options for $0.60 or less. I like selling the LX210917C00007500 position for a 100% profit.

Until next time,

Shah

Shah Gilani
Shah Gilani

Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator… a former hedge fund manager… and a veteran of the Chicago Board of Options Exchange. He ran the futures and options division at the largest retail bank in Britain… and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: To do his part to make subscribers wealthier, happier and more free.

Recent Articles

Precious Metals are a Waste of Your Capital, Invest in These Banks Instead

Precious Metals are a Waste of Your Capital, Invest in These Banks Instead

There was a running theme this week in the stocks you sent me: metals.

Gold, silver… precious metals that everyone expected to pop with the war in Ukraine raging on – but that’s not what’s happening. Frankly, GLD, GDX, and SLV are a waste of your capital right now. There may be a little bit more upside to each, so put your trailing stops in place, take your profits, and get out.

There are better places to put your money, including an ETF trade and a few of my favorite banks.

Check out my video below to learn more or click here to read today’s transcript.

As the American Economy Flexes its Muscles, this is the “Ultimate” Stock to Buy

As the American Economy Flexes its Muscles, this is the “Ultimate” Stock to Buy

Financials are the ultimate cyclical stocks.

And banks are the ultimate financial stocks.

The fact is, I love banks. And I’ve been touting them since last summer – indeed, I was ahead of the crowd on predicting their rebound.

I still chuckle over the good-natured grief I received last year from Fox Business News host Charles Payne when I appeared on his “Making Money” show and recommended financials.)

Today, Charles repeatedly congratulates me for having made that “call” before anyone.

The fact is that – by being ahead of the crowd in making banks stocks a “Strong Buy” – we reaped the big returns that stem from being first.

But if you missed that prediction – or maybe weren’t able to act on it – don’t be concerned: I still see the right bank stocks as big moneymakers for investors.

In fact, my newest call is an updated call on financials, on banks. And you – my Total Wealth followers – are hearing it first.

In yesterday’s TW – as part of our deep-dive look at the cyclical-stock beneficiaries of the strongest U.S. rebound in decades – I promised to bring you a stock play … and this one is a “stone-cold bargain”

Today, I’m keeping that promise.

It’s a stock that’s set to bring you a gain, in my opinion, and based on my analysis, of 50% on your money – and quite possibly more.

As the American economy muscles its way out of the pandemic morass, this is one of the ultimate stocks to buy and profit from as you go along for the bullish ride.

And I’ll tell you all you need to know right here.

Four Reasons to Cash in On the Strongest Economy in 38 Years

Four Reasons to Cash in On the Strongest Economy in 38 Years

MarketWatch sees the insider selling at sensitive-to-the-economy companies like Carnival Corp. (NYSE:CCL), The Walt Disney Co. (NYSE:DIS), Goldman Sachs Group (NYSE:GS), Morgan Stanley (NYSE:MS) and Yum Brands Inc. (NYSE:YUM) – and views it as a possible warning that “the end has arrived” for cyclical stocks.

Investor’s Business Daily peruses S&P 500 market data and concludes that American Airlines Group (NasdaqGS:AAL) and other cyclicals are “grossly overvalued.”

And Barron‘s hammers the stake all the way into the cyclical story – cautioning investors that tied-to-the-economy stalwart U.S. Steel (NYSE:X) is “one of the most-overvalued stocks in America.”

Nervous Nellies all of them. Sycophantic mouthpieces for a hidebound Wall Street.

Tune them out, I say. They’re wrong.

Indeed, I like all those stocks.

All of them.

In fact, if you don’t own them already, buy them – and I’ll tell you why.

Make Legendary Moves (and Money) with this New Strategy

Make Legendary Moves (and Money) with this New Strategy

Investor Peter Lynch achieved “legend” status during the 1980s – and it wasn’t just because of his best-selling book One Up on Wall Street.

It was the fact that he made a lot of mutual fund investors rich.

While helming the Fidelity Magellan fund from 1977 to 1990, Lynch delivered an average annual total return of more than 29% – a performance that would have turned a mere $10,000 investment into $280,000 at the time he decided to leave.

But I’m going to let you in on a stunning secret: Most of the huge gains Lynch made for investors was due to a strategy that almost nobody ever talked about.

And Lynch wasn’t alone.

Legendary hedge fund manager and value player Seth Klarman has used this strategy throughout his career. Edward Thorp, one of the best arbitrage and quantitative investors of all time, continues to use it.

And this is why, in Tuesday’s article, I told you to hang on to your bank stocks. There’s still money to be made on banks – and it’s with the same strategy that made these men filthy rich.

The strategy itself is as simple as it is powerful, yet virtually no retail investor uses it.

Heck, most investors don’t even know about it.

Today I’m going to tell you all about the strategy, and we’ll put it to use ourselves – with a brand-new stock recommendation…

View Banks Archive

BROUGHT TO YOU BY MANWARD PRESS