Rising inflation, the war in Ukraine, supply chain shortages, and other factors have combined to create economic uncertainty and put a damper on stock growth.
As a result, 2022 has certainly not been a bumper year for the stock market, with many mega-cap stocks seeing little to no gains.
So, Where Should Growth-Minded Investors
Look to Enjoy Greater Gains?
Many are turning their attention to microcap stocks, where companies are positioned to grow despite the current economic conditions.
Microcap stocks also have the added benefit of growing fast compared to larger, more established companies that traditionally see more steady growth rather than massive growth surges.
Of course, when dealing with microcap stocks, it’s always important to point out that along with the opportunities for large growth also comes high risk.
These companies, on the whole, tend to have access to less capital, and also, since they are currently building themselves up, they do not have a large group of loyal customers who can be counted on to stick with the company through “thick and thin.”
One more thing to be concerned about when it comes to microcap stocks is that there is often much less information available about these sticks compared to larger stocks.
Combine all these factors and you get stocks with the potential for rapid surges in value and dramatic drops. Make the right decision at the right time, and you could boost your earnings significantly, even in poor market conditions like we are currently experiencing.
3 Microcap Stocks That Could
Breakout at Anytime
Here are 3 lithium-battery microcap stocks to watch in the coming months:
Syrah Resources Limited (OTCMKTS: SYAAF) –
This is an Australian-based graphite miner that has a signed deal with Tesla. The mineral graphite is used to create the negative end of lithium-ion batteries, which are in high demand these days. On April 14, the company had a stock price of 1.20 with a market cap of 1.05B (AUD).
Bell Copper (TSXV: BCU) –
This Arizona company is a copper explorer focused on two projects in its home state (Big Sandy, Perseverance). It has enjoyed big gains so far this year – it’s up 259%. On April 14, the company had a price of 0.47 (CAD) and a market cap of 48.16M. Copper is used as the current collector for batteries’ anode.
Canada Nickel Company Inc (OTCMKTS: CNIKF) –
This nickel exploration company with projects in mining-friendly jurisdictions was at 1.99 (USD) with a market cap of 275.37M (CAD) on April 14. Nickel is used in lithium batteries to increase energy density and storage capacity.