In the last week of 2021, I wrote about ten stocks that I plan on actively trading in 2021. The 10 stocks are Urban-Gro (UGRO) , Xeris (XERS) , Alto Ingredients (ALTO) , IonQ (IONQ) , Humacyte (HUMA) , AirSculpt Technologies (AIRS) , Trio-Tech (TRT) , Elys Game Technology (ELYS) , Ondas Holdings (ONDS) , Li-Cycle Holdings (LICY) .
All 10 have traded lower in the first half of January, but I still like them. Finding stocks that you like fundamentally is only part of the battle. The hard part is finding entry points and managing the trades as they develop.
Currently, we are in a market where the fundamentals of small caps are totally meaningless. You could find the greatest stock in the world, and it would not matter right now because of the market dynamics.
What I do is I put all ten of these stocks on a tracking list, and then I watch them closely. What I want to see is some sustained buying interest. I'm not interested in trying to buy them cheaper. I'm interested in buying them when they act better.
I don't ever recall a market environment where I have found so many stocks that I believe have exceptional potential, but they are being killed by a lack of interest combined with a lack of liquidity. Any smaller stock with good news is sold into strength.
We are slowly starting to find some support, but the big caps and indexes are still holding all the promising stocks hostage.
Although this market has been remarkably difficult for quite a while, I don't ever recall being more confident about the tremendous developing opportunities. Inflation worries, supply chain issues, and Omicron are significant obstacles, but as they eventually evolve, the potential for a booming economy is excellent, and many of these stocks will benefit.
This market is acting terribly right now, but I'm highly optimistic about what is developing.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)