The Five Best Small Cap Stocks to Buy Now
"I'll Show You What to Buy, What to Sell, and Exactly HOW to Do It with Less than R10,000"
Hi, Francois Joubert here – your chief investment strategist for Red Hot Penny Shares.
I'm here today for a very important reason.
There has never in the history of our stock market – been a better buying opportunity than what we're seeing right now.
In the next decade, we're going to see an extraordinary "transformation" in the economy that will affect how we live, work, and play.
- Those companies who become more automated, will be more profitable.
- Companies that adopt new technologies will lead markets
- And if we understand and play these trends, we will profit too.
If you have an extra R10,000... R50,000... R100,000...
Now is your chance to lock in the next generation of stocks that could make you money in 2022 and beyond.
In fact, I just closed out average gains of 72.82% on 20 stocks in my portfolio in 2021.
And today, I'm going to show you exactly how its possible for you to do this in 2022.
So today, in my capacity as chief investment strategist, I'm doing something unprecedented.
Over the next few minutes I’ll detail five MUST BUY stocks every single South African investor must consider right now.
These are companies that I believe will benefit from trends that are here to stay.
And because we're spotting these opportunities early, these stocks are still affordable – I'm only looking for reasonable share prices trading at a discount right now.
But these will not be CFDs, options or anything complicated.
You can buy these stocks from your broker or even your banks trading platform.
They're also not going to be your everyday name-brand stocks that everyone already knows and is talking about. I mean everyone knows Capitec, Discovery, and Naspers.
I want to talk about stocks that aren't on your radar yet.
They are small cap stocks that...
- Have a growing business in a large market and are already making a lot of money.
- Have few or no competitors or a unique unbreakable competitive advantage.
- Are profitable and have either low or no debt – meaning they can survive any economic downturn.
- Have all indicators pointing to the fact that they're trading at a great discount to their real value.
- In some cases, pay fat dividends – meaning they pay you just to hold the stock.
Then in some sectors, I’ll also mention the stocks that I think every South African should be avoiding…
Maybe they're overvalued, maybe they're hiding some overwhelming debt.
Either way – Stay away.
For each stock I cover today, I'll share specific details with target prices and "buy-up-to" levels – this is so you "don't overpay for these stocks."
And we'll talk about simple strategies you can put in place to help you, so you never lose big. That’s why I encourage you to follow a sensible take profit and stop loss strategy and to never invest more than you can afford to lose.
We'll also consider dividend payouts.
Our goal is simple… to find winners.
At the end of today, I want you to have a list of stocks that you can (and should) consider investing in with even an entry-level amount of money.
I also want you to take note of a few types of stocks to avoid. Remember, these might look good on paper, but we'll go over why you should NOT be putting your money in them.
Right, let's get started.
Banks and insurers are the centre of commerce, and the economy.
These are some of the biggest companies in the world... Think Europe’s largest bank – HSBC or Bank of America.
And then there are south african giants like…
Standard Bank and Old Mutual.
The financial sector accounts for almost half of most global economies and it’s no different in South Africa.
And thanks to covid, cryptocurrencies and cloud technologies, they’ve had a real wakeup call.
Because people are now banking and insuring differently.
Even before COVID-19 changed our behaviour, traditional "walk-in" banks were on the way out.
These days most people use mobile apps to do their banking, and electronic channels for insurance…
But there is one financial company in particular that is leading the way in adopting technology to drive their business…
Clientele Ltd – ticker JSE: CLI.
A small-cap insurance company with a difference.
Its business was built through telemarketing, as well as independent financial advisors. But just before the pandemic started, the company launched its own app.
With this evolution, its clients could now buy new insurance products, manage their policies and even submit claims all via the app.
And thanks to this, the company grew revenue to R2.2 billion. And its profits shot up 19%.
Clientele’s business model has been so attractive that it paid a 95cps dividend (9.6% of its share price) in 2020 and increased it to 110cps in 2021(11.16% of its share price).
Along with strategic new tech development, this is where the smaller, more nimble companies benefit.
And there’s another reason why Clientele’s future growth is pretty much guaranteed…
Its market. While Old Mutual and Discovery play in a more niche premium income market, Clientele has positioned itself as an accessible insurer for the broader market.
It’s long history of dividends, coupled with the growth in its market and its early investment in technology mean there’s solid profits for us into 2022 and beyond.
So, here's what you'll want to do...
Open up your online trading platform, or phone your broker – whoever you invest with.
Look up the ticker symbol: CLI.
Then all you’ll need is the buy up to price and the stop loss to set on this stock which I’ll tell you how to get your hands on in a moment.
My second stock is in packaging.
While the pandemic took over, online shopping companies like Amazon and Takealot flourished.
Takealot saw a 55% increase in revenue for 2020. Checkers launched the Sixty60 service, and is now processing more than 10,000 orders a day!
And as things like online shopping soar – so does the need for packaging.
The packaging industry is fundamentally tied to online shopping. The food packaging industry alone is worth around $900 billion a year.
So, it’s no surprise ‘why a well-positioned packaging company would not flourish…
Bowler Metcalf Ltd (JSE: BCF)
This pretty much sums up this packaging company.
In 2020, Bowler grew profits from R63.6 million to R89.9 million.
In 2021 profit shot up to R111.2 million.
This company will spend a massive portion of its budget on expansion
It’s most exciting development…its R40 million 3MW solar project investment.
A project like this can easily produce around R6 – R10 million in electricity per year.
And still – the company sits with R381 million in cash in the bank – whilst its market value on the JSE is merely R783 million.
At a share price of 981c, with a dividend yield of 5.3% this stock is sitting at a great discount to its real value.
You can get my detailed BUY profile on what to buy BCF at, what to sell at and how long to hold in my Five best stocks to buy now for big profits in 2022. It’s free… I’ll show you how to claim it in a moment.
But I want to finish telling you about my 3 other favourite stocks first.
Another consequence of the pandemic is supply chains the world over are messed up.
Literally all of the factories around the world emptied out their stock levels as they went into lockdowns.
And then for weeks, and in some cases months, they didn’t produce a thing.
Now, as economies restart there’s a lot of pent up demand. Factories and retail stores all need to restock.
And it’s led to severe shortages of almost every commodity out there.
The price of lumber soared by 235% in around six months, iron ore hit an all time high in May 2021. Platinum, palladium, copper and tin are all at or close to their highest levels ever…
While gold had a shiny 2020 – I’m avoiding the metal for the next year…
In fact, I recently issued sell signals on DRD Gold and Pan African Resources to Red Hot Penny Shares readers.
Gold may have hit an all time high on uncertainty during the pandemic, but as the economy recovers, the gold price will retreat.
And so too will these gold miners share prices.
So, what is my best stock opportunity in the mining sector?
Well, there are two of them.
But I have one choice stock to buy right now in this space. If my estimates are correct, then I expect a price rise in excess of 132% in less than 12 months from buy levels up to 120c.
I doubt many people even know of this little miner’s existence. But the company will see massive growth in the coming year thanks to high commodity prices – and it can react much faster than a big mining company can – it doesn’t have to dig a hole in the ground to produce more copper!
And I suspect there will be a dividend on the way in 2022 as well.
To get full details on this little miner, you need to get my Five Best Stocks for Big Profits in 2022.
This doesn't contain just one or two stock recommendations but a small portfolio strategically crafted for the market we're in right now.
We already covered my top four stocks to consider buying right now (and a few stocks to avoid) but I'm not stopping there.
Next up – Property:
No industry has been safe from the pandemic’s “work from home” rule.
It's hitting commercial and office development, large-scale construction, building leasing and management companies... and that includes several big real estate investment trusts.
Offices are standing empty. Cafes and restaurants that once hosted office workers for lunch are deserted. And some of the largest property companies are really struggling.
Office vacancy rates rose to 13.3% at the end of 2020, according to the South African Property Owners Association (Sapoa). But it reached new highs in the first half of 2021, and, by the second quarter, had increased to around 15%, its highest level since 2004.
I am very wary of property companies like Growthpoint, Investec Property Fund and SA Corporate Real Estate. With offices staying empty, and more companies saying they will permit workers flexible office hours going forward I anticipate companies will be reducing the size of offices they rent.
That said – the demand for residential property seems to have increased massively.
Especially thanks to low interest rates, and the fact that people now have spare cash to spend on their homes instead of filling up their cars to get to the office.
That’s why I really like this one property developer…
I call it the “Uber of real estate” –I’ll explain why in a moment.
It builds houses in the affordable housing segment – many of which are government subsidized, or within the affordability range for blue collar workers.
What’s more – this company has been smart about how it does business…
Management at this company quickly realised that events like the pandemic – whilst rare happen. And the real estate industry is cyclical.
So, if you have a large work force, and lots of equipment to maintain – you can’t react to market changes quickly.
If demand drops – you still have employee salaries to pay even if you aren’t building any homes.
And if suddenly there’s huge demand – it takes too long to ramp up production again.
So, the company took a leaf out of Uber’s business model…
You see, even though Uber is worth $88 billion today it doesn’t own many assets. It doesn’t own thousands of taxis. And it doesn’t pay salaries to many employees.
In fact – the company is estimated to have between 3 and 4 million drivers around the world.
But the company doesn’t have a fraction of the overheads a business with 3 million employees would have…
Simply put – it doesn’t pay a cent if its drivers don’t work.
It doesn’t have to pay annual leave, nor sick leave. It doesn’t need a massive HR department, nor does it needs to run a payroll.
Uber focusses on what it is good at. Supplying transport services to the public, and a business opportunity to taxi drivers.
So, this proeprty company has evolved its business model to follow the same principles as Uber…
It doesn’t have thousands of builders on its payroll. It doesn’t own a fleet of construction equipment that it needs to maintain. Yet it develops thousands of homes a year – on demand.
The bigger demand is, the more homes it can build and sell, while if there’s a slowdown it can cut down construction to the bare bones – without sitting with retrenchment costs or high overheads!
And that’s allowed the company to rapidly bounce back from pandemic lows.
In the past six months it grew revenue from R395 million to R576 million.
Profits shot up from a mere R31 million to a whopping R113 million…
And the company sits on a cash balance of R214 million in the bank – that’s enough powder in the keg to respond rapidly to any opportunities that present themselves.
And its got one more uber opportunity its rolling out as we speak…
Sign up and get the full details on this company right here… for free.
Whether you're a bull or bear – It's time to buy.
And I'm here to show you how it's done.
Now, I get it... you might not know me yet. And I don't know you yet.
I'm willing to bet you've worked really hard for a long time to get wherever you are today.
It's the same story with me.
You may look at me and think I was born into a life of privilege.
Nothing could be further from the truth.
My parents taught me that I could achieve anything with hard work.
At 14, I would spend holidays working on a farm for pocket money...
At 16, I spent afternoons after school giving children horse riding lessons, or baby sitting for money...
I was also a pretty smart kid. I got accepted to every university I applied to and got a bursary to study engineering at the University of Pretoria.
While other students went to the beach or party during breaks between semesters – I would work at a mine, or for a consulting company gaining experience and earning the money that paid for my student accommodations, food and clothes.
Even after I started working I paid for my degree in Investment management, and my post graduate diploma in property valuation.
It was during my student days that I started investing some of my hard-earned money.
My investment gains were enough that I’d been able to buy my first property by the age of 24. And by 30 I owned 5 properties.
Today I’ve had 13 years experience investing, 10 of which have been professionally, having spent time at brokerages like Imara SP Reid, or in the offices of private equity companies advising international funds on where to invest in Africa.
Today, I have no problem admitting it: I'm on track to be financially independent by age 40.
Long story short, I'm walking proof...
And I'll tell ANYONE who's willing to listen...
Stocks. Can. Make. You. RICH.
And that's truer now than it's ever been before.
Because right now, we're witnessing a real generational buying opportunity.
Meaning NOW is your chance to let the market get you the life you deserve.
Which is why, for the first time ever, I want to send you my Five Best Stocks for Big Profits in 2022 – right now – FREE when you accept this offer today.
Don’t wait another day. Claim my free report to begin your no obligation trial today. I expect you to double your money on at least one of these stocks in 2022.
Once you’ve made your first small cap profits, there will be no turning back!
Remember, full details on ALL these “profit-packed” shares will be yours as soon as you claim a copy of my Five Best Stocks report.
Get straight-up, meticulous research from your very own small cap guru!
Today I’d like to work for YOU. I’d like you to accept my free report offer which includes a three month, no obligation membership to Red Hot Penny Shares.
In return, I’ll rush you the five company profiles featured in this report right away so you can position yourself to DOUBLE YOUR MONEY in the next 12 months.
Of course, if you don’t want to invest you can just study my analysis. Read about each company…
Watch their progress… Or simply ‘paper trade’ my recommendations to see if they are correct. This way you can make sure penny share investing is something you’re comfortable with before putting up your cash. It’s entirely up to you.
Either way, I pledge you this: See them profit. Or get a full refund.
Remember: I’ll be shocked if these five stocks DON’T make you money over the next 12 months…
And I don’t say this blindly: I’m not just some naïve cowboy straight out of business school who thinks big profits can be generated with a couple of buttons on my laptop.
What’s more – I really LOVE the work I do! And I’m absolutely convinced that my strategy can help you make significant gains on your investments…
Get FULL access to my entire portfolio for the next three months
The five exciting stock tips I’ve outlined in my play book today are really only the beginning.
Right now my portfolio is absolutely jam-packed with quality stocks. And I think every single one of them is brimming with the potential to make you money. Sign up for your 2022 Small Cap, Big Profits Package today, and you’ll have full access immediately.
You’ll be privy to all kinds of money-making opportunities: technology advances, rare metals, new oil discoveries, diamond mines, medical breakthroughs… Each stock I pick is researched to the hilt, and most of them stem from a thrilling history that even the most conservative investor would be excited to be a part of.
I believe that the stocks included in your exclusive FREE profiles have the real, tangible potential to make you at least DOUBLE YOUR MONEY, over the next 12 months. Frankly, I’d be surprised if they don’t!
Agree to try out Red Hot Penny Shares, and you’ll be privy to many more potential-packed profit stories...
Here’s what you’ll get if you
sign up today
Simply fill out the online membership application at the end of this letter and I’ll send you your FREE Five Best Stocks for Big Profits in 2022 immediately.
Then, for the next three months (and after that if you choose to stay on as a member) I’d like to send you my latest new small cap discoveries.
Once a month, you’ll receive a newsletter packed with all the latest share recommendations I believe have the potential to double your money.
I’ll tell you what the risks and potential rewards are, what price I recommend to get in at, and what I’ve calculated as a realistic target price. PLUS, I’ll tell you what action to take on existing shares in the portfolio, whether to buy more, sell or hold your position for the time being.
You can follow some, all or none of my research. You can invest in the shares I provide, or simply paper trade them for a while. It’s entirely up to you.
I’ll also send you email updates every Tuesday, where I pass on urgent news and updates I hear that might affect your shares. If the halo starts to slip on any of our shares, I’ll email you and advise you to sell your holding – that way we’ll aim to keep any losses to an absolute minimum.
If, during this three-month membership you decide that my wealth package isn’t for you, simply cancel.
I’ll give you a full refund. No questions asked.
And the play book plus the issues and updates you’ll get will be yours to keep – for FREE – no matter what. Consider them a gift for agreeing to try my newsletter!
If I’m wrong and my stock tips don’t make you money, you won’t have lost a single cent of your membership cost. If I’m right, I’m hoping you’ll stay on as a regular and become a member of one of South Africa’s hottest penny share investment circles…
Be warned: this is seriously addictive stuff!
Take it from some of my readers…
“I’m delighted with the advice and information I receive from red hot penny shares which grew my portfolio by 30 % in 3 months. The information they provide on shares are accurate and well researched.”
– Adam, Cape Town
“I am 33 years old and inherited R 100,000. My aim is to invest it in such a way that I can retire before age 55. With the help of RHPS I am ahead of schedule after only 1 year and I may be able to retire rich and young!” Fact is, trading penny shares is a real rush. There’s nothing like watching a little company YOU backed from the start hitting the big time…”
– Ben Joubert, Faunasig
Especially when you bought it for pennies!
I haven’t found anything that can beat the thrill of starting up my computer to see how the stocks I’ve backed are doing. And I’m pretty sure you’ll feel exactly the same way. So, crunch time…
How much will you pay should you decide to stick around?
I won’t insult your intelligence. I get paid quite reasonably by my publisher to provide this service. If I can be blunt about this – income is of little importance to me. But I’m still a businessman. And my expertise does come at a price.
So a one year membership to Red Hot Penny Shares will cost you R1,800. (R450 a quarter). That’s it. That’s what I normally charge.
Let me put that into context for you: I know some fund managers who charge that for a FIFTEEN MINUTE consult... My share research service works out at less than R5 A DAY!
“It is the most profitable newsletter for anybody who is interested in shares or who invests on the stock market.”
– A.S. Rautenbach
That price includes a monthly online research report filled with my latest share tips; in-depth analysis; and a summary of why I think these stocks are worth a punt.
And each Tuesday I’ll send you an important email updating you with any news on our open portfolio positions, detailing their progress and whether you should “buy”, “sell” or hold on for the ride! Plus, you’ll have full access to our exclusive member’s website and the entire Red Hot Penny Shares archive.
When you consider the number of high potential companies I’ll be clueing you up on, I reckon that R1,800 seems like a pretty good deal.
Now, R1,800 is the full official fee. But that’s not what you will pay today.
My publishers have kindly allowed me to offer you an introductory price for the first three months of just R270 (That’s 40% off my usual membership fee of R1,800) provided you respond now.
That’s a massive 40% discount!
Just fill in the online membership certificate at the end of this letter to activate your 90-day ‘2022 Small Cap, Big Profits’ package, and everything you’ve read about in this letter is yours – for less than the cost of dinner for two at a half-decent restaurant!
Now I don’t want you to make any decisions just yet – because that’s not all you’ll get should you accept my free playbook offer today... The offer gets much better….
Three FREE gifts that aim to make you a smarter, richer penny share profit hunter!
Click here now to claim your 2022 Small Cap, Big Profits package and, along with your play book, I’ll provide you with these THREE ADDITIONAL FREE GIFTS that are yours to keep, just for agreeing to review Red Hot Penny Shares for the next 90 days...
FREE GIFT #1: The Investor’s Toolkit
This exclusive report is designed as a step-by-step guide for new stock market investors.
In it you will find all the tools, tips and tricks you need to intelligently evaluate any share on the market.
Including how to grasp the intricacies of PE ratios, earnings yield, net asset value, cash flow and more.
FREE GIFT #2: How to Make Big Money in the Exciting World of Penny Shares
This guide includes absolutely everything you need to know about investing in… and profiting from… the exiting world of penny shares.
FREE GIFT #3: A lifetime subscription to MoneyMorning
MoneyMorning daily e-letters are packed with ‘must-know’ market intelligence and contrarian commentary by top market analysts that will take you into the exciting world of investing.
If you hate to waste time reading mediocre financial ‘news’, then you’ll love MoneyMorning!
And there’s even more…
My 2022 Small Cap, Big Profits package also includes::
Weekly email updates
My weekly Tuesday email alerts will bring you up to date on our current share selections, and up-to the-minute information on emerging penny share winners to boost your portfolio – in short, everything you need to know to quickly act on and make money.
Private access to the Members-Only section of our website
You’ll get your own personal password so you can log onto our new investment portal, day or night. Here you will discover all my personal recommendations and a constantly expanding library of special report and specific time sensitive opportunities.
Special broker rates with some of the top brokerages in the country
I have negotiated special discounted rates with some of the best brokerage houses in South Africa – exclusively for my Red Hot Penny Shares members.
Now that I’ve told you exactly what you’ll get with your 2022 Small Cap, Big Profits package, is there really any reason not to get started straight away…
Francois Joubert Editor,
Red Hot Penny Shares
PS: I believe the five small cap stock recommendations I’ve described to you in this report could be right on the verge of pulling in some serious profits for investors. There’s no telling how fast or far their share prices will soar. All you have to do to get started is fill out and the online membership certificate today; and I’ll send you your five exclusive company profiles as soon as I have your online certificate in hand.
Remember: these profiles and all the additional FREE gifts detailed in this report will be yours to keep whether you decide to continue with your subscription or not.
PPS: My strategy locks onto the kind of stocks most investors never hear about until long after the BIG gains have been made. I’m offering you first dibs on what I believe are some of the most exciting, potential-packed profit opportunities out there today! And I’ll be amazed if the five stocks I’ve already outlined DON’T DOUBLE YOUR MONEY over the next 12 months.
(You can review your order before it’s final)