Can small stocks deliver big returns?

From https://finfeed.com/market-watch/can-small-stocks-deliver-big-returns/20170505/

As the S&P/ASX All Ordinaries index slipped below 5909 points on Thursday it implied a negative one month return with the intraday low of 5885 points and the close of 5904 points disappointing investors who have been actively buying over the last four weeks, pushing the index to a post-GFC nine year high of 5983 points.

While some analysts are tipping further downside for the index it remains a stock picker’s market as evidenced by the strong performances of several stocks featured on finfeed.com over the last month.

The top five have not only bucked the negative performance of the All Ordinaries index, they have all delivered double-digit share price gains ranging between 14.2% and 66.6%.

It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering each stock mentioned in this article should seek independent financial advice.

Even small stocks can deliver big returns
The fact that the best performing stock featured by Finfeed.com for the four weeks to May 3, 2017 only has a market capitalisation of $8 million indicates that size doesn’t necessarily count.

Capital Mining (ASX: CMY) was the top performer with a gain of 66.6%, closely followed by Immuron (ASX: IMC), up 61% over the last month. These are emerging stocks with strong news flow driving their share prices higher and there is nothing to stand in the way of them going further as most are on the verge of hitting important milestones.

Finfeed highlights the achievements of the top five performers below while also casting an eye to the future in terms of identifying potential share price catalysts.

Capital Mining (+66.6%)
It was in March that CMY’s shares started to gain momentum after the company negotiated an option agreement to acquire the Scotia cobalt-nickel project in the Eastern goldfields of Western Australia.

CMY subsequently exercised its option to acquire the project on April 20 while also increasing its equity interest in the high grade Mayfield zinc-silver project located in south-eastern New South Wales.

Exploration results from both projects have been encouraging, and these developments along with the return of high-grade assay results from the group’s first phase exploration program at the Wolfhound lithium project in Ireland positions the company with a number of options across precious metals, base metals and new age metals such as cobalt and lithium.

In the coming three months the company is targeting first phase field work at Scotia, while also undertaking the next phase of fieldwork at the Wolfhound and Mayfield projects, initiatives which could provide further share price momentum.