The Best Microcap Stocks to Watch
Microcap stocks, like penny stocks, usually hold huge gains to be had. The potential with such young companies is enormous. And that’s especially true when those small companies lie in speculative markets.
But that’s not always true. Some of the best microcap stocks are in other, well-established industries. Like healthcare, biotech, technology or energy. Sometimes a high growth microcap stock will pop up out of nowhere. It’ll come from a slow-growing, steady industry. So, when considering that, it comes down to the business model. If a business cannot differentiate itself enough to turn a profit, it may not be the best company to invest in.
Microcap stocks carry some risk, too. So that’s something to watch out for. By definition, they are small companies. They don’t have a lot of history to back them up. So, you don’t know how well they will do in the future. Even if it has a long, slow-growing history, it still carries some risk. It carries less, but that’s still something to keep in mind.
And many times, microcap stocks are, indeed, penny stocks. They are usually at or below $5 per share. So, this carries its own risk. Penny stocks are volatile, and could go either way. And they can do this much faster than other stocks. Of course, this is the big draw to penny stocks. Because it can make you a lot of money in a short amount of time.
But it can also take your investment. If you’re careful, though, you can get through it. And possibly even come out ahead.
What Is a Microcap Stock?
Some people mix up microcap and small cap stocks. But there are actually definitions and a difference between microcaps and small caps. Of course, the “cap” refers to the market cap of the company. But a microcap is any company whose market cap falls at $300 million or less. Small cap stocks start at $300 million and top out around $2 billion.
So, with small caps, there’s much less opportunity. But that also depends on where it is on that wide spectrum. With microcaps, you know you’re getting a baby company. Something with lots of room for growth.
How to Find Microcap Stocks?
It can be a little tricky to find these. But, if you’re a bit picky about it, you can find some great ones. You can do a Google search for them and find advisory posts like this one.
You can also use stock screeners. If you filter stocks for microcap, you’ll come up with a list of them. Some stock screeners don’t have that option, so you can use the small cap filter. Then, you can begin looking for companies that are healthy and thriving. I like to do this by adding a “gross profit margin %” filter. Then, I start adding large percentages to it.
The number of results will go down in real time as you type in the percentage. Once you have a manageable handful of results, you can do more due diligence. If you don’t know which one to use, Yahoo’s stock screener is one of my favorites.
How to Buy Microcap Stocks?
Microcap stocks are all over. Just like other stocks. You can find them in stock trading apps and on worldwide stock exchanges. You can trade them using a broker or for free on your phone. They are all over. All you have to do is figure out what exchange they are traded on and go after it. If you like using apps to trade, type in the name of the company and see if it’s listed there.
Microcap Stocks to Watch
- Integrity Applications Inc. (Nasdaq: IGAP)
- Snowline Gold Corp (OTC: SNWGF)
- Aurion Resources Ltd. (OTC: AIRRF)
- CBD Global Sciences Inc. (OTC: CBDNF)
- Nathan’s Famous Inc. (Nasdaq: NATH)
- Quotient Technology Inc. (Nasdaq: QTNT)
Best Microcap Stocks
No. 6 Integrity Applications Inc. (AKA GlucoTrack, Inc.)
Market Cap: Approx. $57 million
Gross Profit Margin over 1,000%
Integrity Applications owns a brand called GlucoTrack. This microcap stock has created a revolutionary device. And it allows people with diabetes to check glucose levels without finger pricking. It also eliminates lots of error vs. traditional glucose level monitoring. Plus, much of the hassle. Those who use these types of devices no longer need to wash their hands for fear of misreadings.
No. 5 Snowline Gold Corp
Market Cap: Approx. $69 million USD
Gross Profit Margin over 1,000%
Some of the best natural resources businesses are in Canada. That’s a big advantage for this microcap stock. Snowline is in the gold mining business. It acquires and mines assets in the Yukon, which was once part of the gold rush. Now, large quantities of gold are being found again.
No. 4 Aurion Resources Ltd.
Market Cap: Approx. $92 million USD
Gross Profit Margin over 1,000%
This microcap is also in the gold mining business. Aurion focuses on exploration of land for gold. And it does the prep work and pushes those projects into mining. The company is working on becoming a joint venture with B2 Gold Corp. And Aurion is currently doing business in Finland, too.
No. 3 CBD Global Sciences Inc.
Market Cap: Approx. $5 million USD
Gross Profit Margin over 1,000%
CBD Global Sciences is a marijuana microcap that is consumer focused. The company makes it perfectly clear that they are intent on outperforming their competition. And it plans to do that by finding great leadership and paying attention to what the customer wants.
So far, it has two brands. One is created for athletes and the other is for wellness. The founder saw a market opportunity in 2015. He went for it and soon became a leader in the industry. That has changed since 2015. But, it’s still in a hot industry. And the company seems intent on business growth.
No. 2 Nathan’s Famous Inc.
Market Cap: Approx. $230 million
Dividend? Yes! about 3%
This microcap stock was founded as a hot dog stand in the original Coney Island neighborhood. Hot dogs are still their specialty. But now, the company opened up to many different fast foods. For instance, like burgers and chicken. Nathan’s is proud of its heritage, and offers delivery with a large selection of companies. The company also offers grocery items.
Microcap Stocks to Watch No. 1 Quotient Technology Inc.
Market Cap: Approx. $145 million
Quotient used to be called Coupons.com. But after a while, it wanted to create a more streamlined approach to saving money. And that’s without clipping coupons. But, the company still owns Coupons.com, and considers it its main way to reach customers.
But, the company has now branched out into other digital means of bringing savings to consumers. This microcap stock wants to transform the shopping experience. And that’s some game changing ambition to look for in a microcap.