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How we Analyse and Choose our Stock Picks

Published 23-DEC-2020 11:26 A.M.


2 minute read

What a year it’s been.

We hold long term positions in 18 carefully selected stocks.

A few of our stock picks have made 1,000% plus gains.

Others are up over 500%. Almost all have doubled.

You can see all our stock picks, research and performance for free on our portfolio page.

So how do we pick the stocks with the highest chance of success?

Today we want to share with you HOW we analyse and choose our stock picks.

"Small cap stocks" are tiny, early stage ASX listed companies, many in resources, energy or technology that have potential for 1,000%-plus gains.

It’s a corner of the market that the team at the Next Investors has been investing in for many years.

We have taken decades of learnings, experience and many expensive lessons from investing in the small cap markets.

We have collated it all into an eBook for you:

“How to Make Money Investing in Small Cap Stocks”


This eBook will help you improve your small cap stock analysis skills during the holiday break and hit the ground running in 2021.

Feel free to share it with anyone who wants to start investing in small cap stocks but might not know where to start.

In the eBook, we outline each of the steps we take in making an investment decision, including our 20 point checklist to identify small cap stocks with the best potential for large returns.

In the ebook you will learn:

  • What NOT to do when investing
  • Our investment strategy (including when to sell)
  • Stocks we are currently invested in
  • Introduction to investing in small cap resources stocks
  • Our 20 point checklist for investing in small cap stocks
  • How to deal with hype on social media, chat rooms and internet forums
  • Tips and exercises to train you to analyse your own investments
  • Psychological tricks your brain will play on you

Again, we invest in small, early stage resource, energy and technology stocks — those with potential to increase by at least 1,000%.

These are very high risk, early stage investments. Many will fail, so only invest money that you are prepared to lose.

We encourage all our readers to do their own research, and understand what they are investing in. At the end of the day, all investors are responsible for their own decisions and we hope the exercises in our eBook will help you improve your analytical skills.

Many of the risks and potential pitfalls of small cap investing are fully explained in the eBook.

We hope you had great success in your investing during 2020, and can use the holiday break to brush up on your investing knowledge ready for 2021.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.