Small Cap Royalty: What Are They?

Small Cap royalty is about picking stocks whose businesses are strong enough to handle any conditions. The big deal is that when we last picked them this time last year (Issue 503), they not only survived, but thrived. Our average return was over 30%, which compares to the S&P/ASX All Ords of 8%.

Under the Radar’s mining analyst Peter Chilton and I go through all 8 stocks and their future prospects.

These are stocks that are strong enough to cope with any conditions, perennials if you will.  We have a number of criteria and one of the keys is the customer base. A strong customer base is essential. Michael Porter’s 5 forces of competition has nothing on our 10 Quality Criteria.

Below are some of the key Highlights from the last year:

• Allkem (ASX:AKE) – Lithium miner, +49%

• Austal (ASX:ASB) – Ship builder, +39%

• Data3 (ASX:DTL) – IT services, +57%

• Southern Cross Electrical (ASX:SXE) – Mining and industrial services, +21%

• Gold price comment

• Evolution Mining (ASX:EVN) – Gold miner, +47%

• Northern Star Resources (ASX:NST) – Gold miner, +100%

All this in only 10 minutes. You can get much more detail and a new stock that we’re tipping on:

Companies mentioned

Allkem (AKE), Austal (ASB), Data3 (DTL), NZ Media (NZM), OFX Ltd (OFX), Southern Cross Electrical (SXE), Evolution Mining (EVN), Northern Star Resources (NST).