Dear Fellow Investor,
The last 18 months have been HUGE for lithium stocks.
In 2021, eight of the top 10 best-performing stocks in Australia were lithium stocks.
Two of them — Savona Mining and Lake Resources — both increased by more than 1,000%.
What’s driving prices so high?
That’s simple.
So simple, I can sum it up in one word.
Batteries.
They’re the key to more or less every significant trend we’re seeing in the clean energy market…
But let me ask you this…
What good is a swish, new electric car if it needs charging every 100 miles?
What good is solar energy if we can’t store it for when the sun isn’t shining?
What good is tidal…wind…or ANY renewable energy if we can’t store it for when we need it?
Take a step back for a second and this is obvious.
If we’re going to get green energy to where it needs to be — whether that’s to power a car, home, business, or whole city — we need to store it.
Put another way, we need batteries.
Lots of them.
And we need them to be as smart and efficient as possible.
As Forbes put it:
‘Battery technology may be the keystone of the energy transition.’
That’s why there are governments, energy corporations, and tech giants throwing so much cash at battery tech.
Consider:
One industry executive called battery tech ‘a mind-boggling opportunity for growth’.
And lithium stocks were perfectly placed to capitalise in 2021.
Which has lots of Aussie traders and investors on the hunt for the next big lithium play.
If that’s you, listen up:
See, I think there’s a much smarter way to play this same story.
It involves what you might call lithium’s ‘little brother’.
It’s a material that’s crucial to battery tech.
Just like lithium.
But the difference is, it’s nowhere near as well known.
So it doesn’t grab the headlines in the same way lithium does.
In fact, the company I’ve recommended my readers buy is already supplying Tesla with this crucial material.
Yet, it’s almost completely unknown.
You won’t find it listed in those ‘hot lithium stocks’ reports you find online.
And THAT is your opportunity.
I’ve been a stock market investor and full-time market analyst since 2012.
Picking stocks is my bread and butter!
In all this time, I’ve been analysing, writing about, recommending, and investing and/or trading small ASX shares. Especially ‘small-cap’ stocks.
And I can tell you, lots of experience and passion is one consolation for getting older!
I’ve become an expert in hunting for the unheralded Aussie companies developing extraordinary new ideas.
The kind of businesses that could — if things go well — become some of the top-performing stocks in Australia in the future.
The stock I just hinted at is one of them.
But it’s just one of SEVEN opportunities I’m going to tell you about today.
If I do my job right, what I’m about to share will give you a head start on the next big wealth-building opportunity for Aussie investors.
Why?
Take a look at this diagram:
This is what’s going on inside a lithium-ion battery.
As you can see, there’s a cathode and an anode — with lithium ions moving between the two.
Fundamentally, this is what’s turned lithium into one of the world’s most important materials.
But look closer.
There’s more.
See the anode on the right-hand side?
That’s made of carbon.
Specifically, it’s often made of GRAPHITE.
Which makes graphite an absolutely crucial component of the whole battery.
That’s why I call it lithium’s ‘little brother’.
It’s often in lithium’s shadow.
But it’s crucial, nonetheless.
Case in point: at the end of 2021, Tesla cut a deal with a graphite miner to secure its own supply.
As the website Batteries News put it:
‘[G]raphite could be the hottest commodity of 2022…without it, there will be no energy revolution and the trillion-dollar EV market might not exist.’
Case in point: graphite demand is forecast to absolutely skyrocket in the coming decade, as this chart makes plain:
And I’ve found an ASX-listed company that’s poised to benefit from that growth.
It owns an absolutely HUGE graphite mine that’s just been brought back into production.
Not only that, it’s already taking that graphite and turning it into battery anodes in the US. It plans to be the first non-Chinese supplier to both the US and Europe.
Move now and there could be big money to be made.
And if you want to make your move, stick with me.
In a second, I’ll show you how to get the name, ticker, and full write-up I’ve prepared on this stock.
But remember: this isn’t just about one stock…one market…or one opportunity.
I’m here to showcase SEVEN of the most exciting companies in Australia today.
If you want a realistic shot at building rapid wealth in 2022, here’s the first thing you need to know:
Making real money has nothing to do with how fast the economy is growing, where interest rates are headed, or where we are in the business cycle.
The same goes for COVID, the recession, or the recovery.
Yeah, economists might tell you that stuff all matters…
But it doesn’t.
It’s just meaningless noise.
The truth is, REAL wealth creation is driven by something else entirely.
It’s what happens when people come up with new, daring, and disruptive ideas — and are bold enough to give them a go.
You could call these ideas ‘wealth accelerators’.
And the beauty of them is they can create life-changing wealth no matter how good or bad the wider economy is.
Take the Ford Model T…
When Henry Ford’s era-defining car rolled off the factory floor, the US had just been rocked by the ‘Panic of 1907’, the worst economic crash in memory.
Did Ford care?
No.
Because he knew that truly disruptive ideas are the real engine of wealth creation. (Ford became the richest man on the planet within two decades.)
I’ll give you another example. In the late 1960s, the US was tearing itself apart over the Vietnam War.
Did that stop Gordon Moore and other Intel engineers refining their microprocessor technology?
No.
Because they knew that the power of a truly disruptive idea is a damn sight more important than nearly every piece of economic data you care to name. (Intel is up by more than 264,900% since its 1971 IPO.)
Those examples are illustrative, of course. I just namechecked two of the defining ideas of the 21st century. Those are rare and exceptional examples.
But the simple fact is this:
There are ALWAYS small companies developing new and disruptive ideas with the potential to change everything — not just for a single company, but for a whole industry (and sometimes even a whole civilisation).
These companies are often small.
They’re on the fringes of the market.
You don’t hear much about them…unless they do something spectacular.
Just take a look at some of the top-performing ‘wealth accelerator’ stocks listed on the ASX between 2020 and 2021, for example:
Pointerra Ltd [ASX:3DP] |
1,138% |
BetMakers Technology Group Ltd [ASX: BET] |
406% |
Brainchip Holdings Ltd [ASX:BRN] |
1,060% |
Caravel Minerals Ltd [ASX:CVV] |
1,067% |
De Grey Mining Ltd [ASX:DEG] |
303% |
Dotz Nano Ltd [ASX:DTZ] |
286% |
Digital Wine Ventures Ltd [ASX:DW8] |
860% |
King Island Scheelite Ltd [ASX:KIS] |
475% |
Magnetite Mines Ltd [ASX:MGT] |
600% |
Tesserent Ltd [ASX:TNT] |
216% |
Element 25 Ltd [ASX:E25] |
880% |
EMvision Medical Devices Ltd [ASX:EMV] |
225% |
Enegex Ltd [ASX:ENX] |
1,000% |
GWR Group Ltd [ASX:GWR] |
408% |
Imagion Biosystems Ltd [ASX:IBX] |
360% |
Estrella Resources Ltd [ASX:ESR] |
390% |
Fenix Resources Ltd [ASX:FEX] |
467% |
FYI Resources Ltd [ASX:FYI] |
940% |
Race Oncology Ltd [ASX:RAC] |
789% |
Greenvale Mining Ltd [ASX:GRV] |
1,150% |
Faster Enterprises Ltd [ASX:FE8] |
390% |
Intellihr Ltd [ASX:IHR] |
243% |
Redbubble Ltd [ASX:RBL] |
279% |
Rhythm Biosciences Ltd [ASX:RHY] |
894% |
Scorpion Minerals Ltd [ASX: SCN] |
160% |
Weebit Nano Ltd [ASX:WBT] |
418% |
Anax Metals Ltd [ASX:ANX] |
365% |
Suvo Strategic Minerals Ltd [ASX:SUV] |
313% |
Taruga Minerals Ltd [ASX:TAR] |
810% |
Thomson Resources Ltd [ASX:TMZ] |
500% |
Vulcan Energy Resources Ltd [ASX:VUL] |
2,735% |
8Vi Holdings Ltd [ASX:8VI] |
586% |
Chalice Mining Ltd [ASX:CHN] |
570% |
Ultima United Ltd [ASX:UUL] |
3,900% |
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These are all real share price profits between 14 May 2020 and 14 May 2021. Smack-bang in the COVID crisis and lockdowns too.
And they’re positive proof of the key point:
No matter what the wider economic conditions are, there are always small, daring companies developing new and disruptive ideas.
Let me tell you an astounding example, personally.
In March 2020, at the very bottom of the COVID crisis and worst bear market in Aussie history, one small-cap explorer stock called — at the time — Chalice Gold Mines hit a motherlode strike near Perth.
One reader wrote to me to say that stock turned his initial $3,000 stake into…$194,000!
That was a return of 6,300%.
Another reader wrote to me about that same recommendation and told me his ‘extremely small $600 investment has changed our lives’.
‘It was the Catalyst that has allowed me to become an alliance member. And as a whole, my various subscriptions has lead us to pay off our house, sell an investment block for a 75% gain, and turn an initial investment of $20 000 into near as $130 000.
‘So again, a big thank you to everyone at Fattail.’
I tell you…
Small, daring companies are the beating heart of any capitalist economy…and any stock market strategy!
So strap yourself in.
We’re going on a ‘deep dive’ into some of Australia’s most innovative…creative…and potentially disruptive companies.
Every single one of them is small, virtually unknown, and absolutely ripe with potential.
And each of them have the potential to make substantial gains in a short time period.
Starting with…
What if there was a source of energy that could heat your home…power your car…fuel public transport…and even provide energy for air travel…
Not only that, but this fuel is also abundant and 100% clean?
And can be made out of existing fossil fuels, thanks to the technology this first little company has developed.
It’s a great example of a tiny company pursuing a HUGE opportunity.
See, this clean fuel has many energy insiders buzzing with excitement.
The Wall Street Journal called it ‘the ultimate green fuel’.
Over at Forbes magazine, it was dubbed ‘the fuel of the future, set for 50-fold expansion’.
And Bloomberg called it ‘the future of energy’.
Goldman Sachs analysts even claimed it could help create an industry worth US$12 TRILLION by 2050.
Why all the hype?
Well, it isn’t often an energy source comes along that is so versatile it can both heat your home and power your car…as well as changing the game for entire industries.
The last — in fact, the only time — this happened was the emergence of oil as a versatile fuel source a century ago.
But oil is the fuel of the past.
This is about the fuel of the future.
And it’s becoming increasingly apparent that HYDROGEN is that fuel.
You only need to look at the major companies developing hydrogen technology right now to see that’s the case.
You have car manufacturers like BMW…Honda…General Motors...and Rolls-Royce…
Then you have ‘legacy’ energy companies like Saudi Aramco…BP…Shell…Sinopec…Anglo American…and Equinor…
And then you have technology companies exploring the potential — like Microsoft…Amazon…Bosch…Boeing…and Airbus.
That’s because hydrogen might just be the most versatile clean energy source on the planet.
Which is probably what led Bank of America analysts to claim it’s an opportunity similar to investing in smartphones before 2007. According to one report, the bank ‘has advised investors to double down before it goes fully mainstream’.
And there are clear signs that we’re approaching that point.
All told, governments worldwide have committed US$70 billion in public funding for hydrogen research. 30 of them — including our own — have specific hydrogen strategies, such as:
Then you have the more ‘out there’ research being done on hydrogen technology…
Then you have the extraordinary performance of hydrogen-related investments around the world in the last couple of years.
There’s ITM Power…up more than 2,500% in the last five years. Here’s a snapshot from last year I grabbed:
Ballard Power Systems went up more than 1,000% in the same time period:
So did Plug Power Inc:
A VERY compelling case that hydrogen could be not just the fuel of the future…but a huge opportunity for investors, too.
Which is where this first little ASX-listed company comes in…
Could it make gains like those listed above?
Perhaps. Although, no one can see the future. And there are no guarantees. But when you look at what it’s doing…you can see the world-changing possibilities.
It has found a unique way to generate hydrogen, using nothing but existing natural gas as the basis.
Let me take a step back and unpack that for you.
Hydrogen is the most abundant element in the universe.
It’s everywhere.
But that doesn’t mean it’s readily accessible.
In fact, it’s usually fused with something else — like oxygen. (Bind hydrogen and oxygen and you get…water.)
Long story short, that means to generate hydrogen you have to take something like water and then find a way to break it down into its chemical components.
Easier said than done.
And doing it can actually use up a lot of energy, which is obviously counterproductive.
Which is what makes this company so compelling.
It’s patented a technology that COULD be the answer to this problem.
It involves a process called chemical ‘cracking’.
In other words, you take natural gas and literally ‘crack’ the atoms apart — leaving you with completely clean energy.
At the end of the process that natural gas you started with is gone. You’re left with two things:
And here’s the really compelling part…
Both of those things are part of rapidly growing markets.
I just laid out the ‘case for hydrogen’ for you. It’s part of a fast-growing market that was worth US$120 billion last year — and is forecast to be worth US$184 billion by 2028.
But graphite is a big growth market too.
It’s used in lithium-ion batteries, graphene, battery electrodes, and is a billion-dollar market in its own right too.
And the most compelling thing of all?
The company behind this chemical ‘cracking’ process has a market cap of just US$100 million.
It’s a tiny company pursuing a big market.
It’s a small, high-risk play. That means if things go well, it could soar. If things don’t, you could lose some or all of your investment.
But the potential rewards involved with situations like this are enormous.
Keep in mind the numbers you saw earlier: in one 12-month timespan between May 2020 and May 2021, a number of tiny ASX-listed stocks soared by 1,138%...406%...286%...1,067%...even as much as 3,900%.
Gains like this are rare. They are certainly not guaranteed.
But they DO happen.
They ARE possible to find if you do the work.
And the only way to stand any chance of taking advantage is to take an educated risk, be decisive, and move early.
If you want to do just that, hold tight.
In a second, you’ll see how to get the name, ticker, and full write-up on this stock.
But remember, this isn’t just about one stock…one market…or one opportunity.
This is about showcasing SEVEN of the most exciting companies in Australia today.
You just heard about the first — now let’s dig into the next.
Nikola Tesla gave the world era-defining innovations like alternating current (AC), the electric motor, and radio wave broadcasting…
In fact, his name is now a byword for visionary innovation.
So much so that not one, but two, cutting-edge tech firms are named in homage to the Serbian innovator — Elon Musk’s Tesla Motors and hydrogen trucking firm Nikola.
But as incredible as Tesla’s legacy is…
There is one prophecy he made that has yet to come true.
It could one day go down as the biggest contribution he ever made to mankind…and create US$14.2 trillion in new wealth.
A little-known Australian-listed company is helping make it possible.
Tesla made his prophecy over a century ago.
But his vision was remarkably prescient.
‘When wireless is perfectly applied the whole earth will be converted into a huge brain,’ he said…
‘We shall be able to communicate with one another instantly, irrespective of distance.
‘Not only this, but through television and telephony we shall see and hear one another as perfectly as though we were face to face, despite intervening distances of thousands of miles…and the instruments through which we shall be able to do this will be amazingly simple compared with our present telephone.’
You read that right:
In the space of three paragraphs, Tesla predicted wireless communications, video conferencing, and the smartphone.
Incredible.
But it’s the ‘world brain’ part of his prophecy you should be interested in.
See, Tesla foresaw a tech trend that is in the process of changing our world.
It goes much further than people and businesses connecting via the internet.
It involves nearly every THING on the planet ‘going smart’ and connecting.
Tesla wasn’t the only person to see what was coming.
In 1999, Neil Gross made a now-famous prediction in the pages of BusinessWeek:
‘In the next century, planet earth will don an electric skin.
‘It will use the internet as a scaffold to support and transmit its sensations. The skin is already being stitched together. It consists of millions of embedded electronic measuring devices: thermostats, pressure gauges, EKGs, electroencephalographs.
‘These will monitor cities and endangered species, the atmosphere, our ships highways and fleets of trucks, our conversations, our bodies — even our dreams.’
Gross made his prediction a century after Tesla.
But they were both talking about the same thing.
A world in which every single thing you can imagine is connected as part of one big techno-network.
The numbers back this up.
In 2009, the number of connected devices worldwide surpassed the number of people for the first time.
In 2016, there were 15 billion.
This year, there’ll be 46 billion…
And according to Stanford researchers, by 2030 there’ll be 500 billion!
This is the fulfilment of Tesla’s final prophecy.
The ‘world brain’ is powering up.
According to Accenture Research, the ‘connected devices’ economy will be worth US$14.2 trillion by 2030.
And there’s a smart way of playing it…in the shape of a tiny, ASX-listed tech firm.
What does this little company do?
It’s at the forefront of a technology that’s critical to the rollout of smart devices worldwide.
See, what actually makes all these billions of devices ‘smart’ is the microchip technology inside them.
This in itself is big business.
For half a century, microchips have been getting exponentially smaller…faster…and cheaper.
A great example of what we’re talking about: the smartphone in your pocket right now is likely at least twice as powerful as the computers that NASA used in the Moon landing.
The next company is at the forefront of this trend.
It’s developing a state-of-the-art memory storage technology that could be critical to the rollout of smart devices worldwide.
And according to one group of analysts, this company’s revenues are forecast to grow by more than 10,000% between 2021 and 2026.
You don’t see that often, even with small companies.
But when you look at what this ASX-listed tech firm has developed…you begin to see why.
It’s pioneering something called ‘non-volatile memory’ storage.
Put simply, it’s a new way microchips can store information using smaller, faster, and more resilient technology.
And it could have big implications for the technology world in the near future.
In fact, pretty much any way you look at it, it’s a superior technology.
That’s because non-volatile memory technology is:
Much smaller than the current industry standard. Right now, most memory tech is known as ‘flash’ storage. The problem is, this technology doesn’t really go any smaller than 28 nanometres. That’s pretty small. But in a world where EVERYTHING is connected, we’ll need to go smaller. This company’s storage can go right down to 4 nanometres — more than 80% smaller.
Longer lasting and resilient. This company’s chips can retain information for 10 years and operate at temperatures of 150 degrees. When it comes to ‘smart’ industry and transportation — and other technology operating in extreme conditions — that’s invaluable.
Much smarter. This company’s memory technology is modelled on human brain synapses, meaning it could be critical to building ‘artificial intelligence on a chip’ in the future. In a world where everything is truly smart — from cars to home appliances to healthcare devices — that’s going to be critical.
In other words, this company has developed technology that could be crucial to the next generation of smart connected devices.
And its revenues could be about to ‘go vertical’ in the near future, climbing from just a million dollars this year…to more than a hundred million in five years’ time.
The upside potential is huge.
Want to know more?
I hope so.
It’s another example of what I’ve been telling you about:
A small, innovative company pursuing a BIG opportunity.
It’s exactly the kind of situation I share each month in Australian Small-Cap Investigator — an advisory dedicated entirely to these kinds of high-risk, high-reward situations.
If the stocks you’ve heard about so far have your interest, then you’ll love the work we do.
It doesn’t matter how much you have to invest — whether it’s $500, $1,000, or $10,000 — if you have the appetite for risk, our mission is to uncover Australia’s best small stock opportunities for you.
We’ve been doing this for more than a decade now.
In that time, we’ve told our readers about some barnstorming stocks…long before the average investor heard about them.
There’s a good chance you know about Afterpay [ASX:APT].
It’s one of Australia’s real success stories — a high-tech fintech twist on ‘buy now, pay later’. Shares are up by roughly 5,000% since 2016.
What’s so special about 2016?
Well, in June of that year, readers of Australian Small-Cap Investigator heard all about Afterpay — or Touchcorp, as it was called back then.
Specifically, they heard about an ‘opportunity most investors don’t see’…and a tiny start-up that could ‘tap into a tiny fraction of this opportunity, they could become one of Australia’s leading global payment companies’.
Here’s what happened next:
Afterpay is now a billion-dollar company.
And Afterpay shares are currently trading north of $100.
Shares changed hands for $1.53 the day Australian Small-Cap Investigator tipped them.
Incredible.
But that’s the kind of potential we’re talking about with these smaller companies.
Of course, not every company performs like that. Afterpay is an extraordinary company. But it’s the perfect example of what we’re aiming to do with every stock we select.
Bellamy’s Australia [ASX:BAL] is another great example…
Back in 2014, our analysts thought Bellamy’s was about to hit a ‘critical inflection point’ that would result in a very possible upward rerating of its stock price.
Its organic-branded baby food was quickly winning market share from old-style competitors.
Look. I know, baby food doesn’t exactly scream ‘life-changing investment opportunity’.
But that’s EXACTLY the point.
These smaller, innovative companies can be doing ANYTHING.
We don’t care. All we want to see is the potential for a small stock to do BIG things. And
that’s exactly what we saw back in 2014.
Premium and ultra-premium segments of the baby formula market were growing at a rate of knots. And for Bellamy’s, it was a case of right place, right time, and right strategy.
And Australian Small-Cap Investigator readers got in relatively near the beginning of this massive success story…
Based in Launceston, Tasmania, Bellamy’s traded on the ASX for just $1.40 when we first spotted it.
It had a market cap of just $133 million.
Readers who bought the recommendation could have nailed 575.7% in 14 months.
Roughly speaking, that’s enough to turn a $5,000 stake into more than $30,000.
In a little over a year.
Of course, not everything we pick plays out like that. We’ve had plenty of losers over the years. That’s part of the game with ‘small caps’.
You shoot for gains, like those you’ve seen today — knowing you’ll take a few losses on the chin on the way.
That said, Australian Small-Cap Investigator’s recent record is pretty extraordinary.
In the five-year period from June 2016 to July 2021, the average gain across 67 individual speculative recommendations is 34%.
That includes winners and losers, across all opened and closed positions, in that time frame.
Any professional investor will tell you that over five years…picking more than a stock a month the entire time…and in the highly-volatile small-cap space…a 34% average gain is quite remarkable.
That said, the recommendations you’ll find in Australian Small-Cap Investigator are not meant to be managed like a portfolio. Instead, they’re to give you our idea of where we believe the most promising companies of the future are emerging while they still trade for cents.
And like I said, losing trades come with the territory when it comes to small caps.
For every stock that makes 1,000%...there are plenty that lose 50%...70%...even very occasionally 100%.
But you miss 100% of the shots you don’t take, as the saying goes. And to be in the running for those game-changing returns, you have to be prepared to take a risk.
And those risks are extremely well rewarded when you hit upon our best-performing trades like Afterpay (1,448%), PointsBet Holdings [ASX:PBH] (231%), and Zip Co [ASX:Z1P] (886%).
Luckily, we have a good bunch of readers who understand this pretty well.
They come from all walks of life, and follow our work for all sorts of reasons…
Some folks want to find Australia’s next top company:
‘What I really like is learning about new start up Australian companies.
‘I have always believed that Australians are amongst the smartest and most entrepreneurial people in the world. I knew nothing about shares when I started. With the help of your Company, and regular reading about companies in the newspapers and magazines I have learnt a lot since I retired.
‘Your wise advice over every trade I have followed, do not invest more that you can afford to lose.’
MM, Adelaide, SA
And some people just enjoy the kinds of returns we’ve been able to help them make:
‘Great service and I have had some excellent results. Up 968% on WSP (still holding) and made 93% on Z1P.’
MV, Piara Waters, WA
‘I sold recently half of recommended stocks with about 610% gain.’
AK, Mulgrave, VIC
‘Many of my big gains over last five years have come from small cap stocks. Pointsbet has gained me 181% on selling half. Balance showing 189.5% now.’
NFE, Chiswick, NSW
Will you be the next person to write in with a message like that?
I hope so.
Because today, you’re invited to try our research out for yourself, with no long-term commitment whatsoever — starting with the seven companies I’m most excited about right now.
We’ve covered two of them.
Let’s look at stock number three...
John D Rockefeller was running late on the morning of 18 December 1867…
Though he didn’t know it yet, his poor timekeeping saved his life later that day…
And within a decade, it’d help make him the wealthiest man on the planet.
But as Rockefeller rushed to the train station in his hometown of Cleveland that cold winter morning, his mind was on other things.
He was 28 years old. His oil refineries were struggling. In fact, he was on the brink of bankruptcy.
That morning, he was supposed to take the 6:40am Lake Shore Express to get to Buffalo that afternoon. From there, he’d head to New York City to check in on his East Coast operations.
But then fate intervened.
He made it to the train station as the train was departing.
His bags — full of Christmas gifts for his relatives in New York — even made it aboard.
But Rockefeller himself missed the train.
Just after 3:00pm that day, the train he’d missed was crossing a high railway bridge in western New York, near the village of Angola.
At that point, the last two carriages — the very carriages Rockefeller would have been in — jumped the tracks.
They fell 50 feet into the icy gorge below.
Only three people survived the fall.
As Rockefeller described the ‘Angola Horror’, as the wreck became known:
‘We certainly should have been in the burned car…I am thankful, thankful, thankful. I regard the thing as the Providence of God.’
What happened next appeared to prove him right.
The next day Rockefeller arrived in New York — and met with the most powerful man in the US, railroad magnate Cornelius Vanderbilt.
In that meeting, Rockefeller made a single, strategic move that turned his fortunes around.
And set him on the path to becoming one of the richest men ever to have lived.
Strange as it sounds, understanding the strategic move Rockefeller made back then could help you build wealth today, a century-and-a-half later.
In fact, it could be the key to a US$620 billion opportunity that many of the world’s key energy players are pursuing right now.
See, Rockefeller owned oil refineries all over the East Coast and Midwest of the US.
But he knew that refining oil wasn’t enough.
He had to transport it, too.
That’s where his deal with Vanderbilt came in.
He agreed to fill Vanderbilt’s trains with barrels of oil — in return for cheaper shipping rates.
It was a stroke of genius.
And it propelled Rockefeller’s oil company — Standard Oil — towards greatness. (Two ‘oil majors’ today, Shell and Chevron, are mere offshoots of Standard Oil.)
And it was all thanks to that decision.
In other words, Rockefeller understood the critical strategic connection between generating energy and transporting that energy to where it’s needed.
It’s a connection that is still vital today.
And no more so than in the green energy market.
Green energy generation has advanced at a stunning rate.
Solar energy generation increased 25-fold between 2010 and 2020. And the price of generating that energy plummeted by 70% in the same time period.
Wind energy is seeing similar growth. The number of gigawatts produced by offshore wind increased by more than seven times between 2010 and 2018, according to the International Renewable Energy Agency. (It is forecast to grow 10-fold in the coming decade, too.)
Then you have hydrogen…tidal…hydropower…
It’s all heading in one direction, as this chart shows:
But what good is generating that energy if we can’t get it to where it needs to be?
And BATTERY technology is the answer.
Take a step back for a second and this is obvious.
If we’re going to get all this green energy to where it needs to be — whether that’s to power a car, home, business, or whole city — we need to store it.
Put another way, we need batteries.
Lots of them.
And we need them to be as smart and efficient as possible.
As Forbes magazine put it:
‘Battery technology may be the keystone of the energy transition’.
That’s why governments, energy corporations, and tech giants are throwing so much cash at battery tech.
Consider:
One industry executive called battery tech ‘a mind-boggling opportunity for growth’.
Look at the stock market and it’s hard not to reach the same conclusion.
We’ve already seen lithium stocks boom. Here’s a table I recently put together to show just how crazy high small-cap stocks can fly when a big, global wave takes them up:
This is the extreme power of small caps, given the right sector and enough time…and our goal here at Australian Small-Cap Investigator.
But this trend is NOT just about lithium. There’s a whole suite of metals needed here.
Add it all up and what do you get?
A global energy trend.
Billions of dollars of investment flowing into it.
And clear signs that early investors can make money from what’s happening. (Though not every stock will soar like that, of course, but it is clear there’s big potential here.)
Which is where your next pick comes in…
It’s a little Aussie company that’s right on the cutting-edge of battery technology.
See, as most people know, most industrial batteries — in stuff like electric vehicles — are lithium-based.
But that’s only half of the story.
See, while lithium is the name you hear most when it comes to battery tech, graphite is also absolutely critical to energy storage. (To grossly oversimplify things, it’s the combination of lithium and graphite within the battery anodes that makes the battery work.)
Which I believe makes graphite the smart way to play the rapid growth battery technology is seeing right now.
Case in point: graphite demand is forecast to absolutely skyrocket in the coming decade, as this chart makes plain:
And this next ASX-listed company is poised to benefit from that growth.
It owns an absolutely HUGE graphite mine that’s just been brought back into production.
Not only that, it’s already taking that graphite and turning it into battery anodes in the US. It plans to be the first non-Chinese supplier to both the US and Europe.
It also arranged a deal with none other than TESLA.
Move now and there could be big money to be made.
And the best way to do that?
Grab your copy of ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
All the details you need are ready and waiting for you.
Plus, you’ll get the full write-up on the next opportunity…
This small-cap innovates in a space that will play a pivotal role in the world’s energy transition to net-zero by 2050…
Environment Intelligence, commonly known as ‘EI’.
As managing director of data science consulting firm BCG Gamma said:
‘We cannot reduce what we cannot measure.’
That’s why, over the next decade, it will be increasingly important for companies to invest in EI …
In other words, technology that tracks, measures, and works to reduce environmental impact.
To meet the goal of a decarbonated society, this won’t just be a luxury. It will be essential.
And as more and more businesses invest in more sophisticated EI, the bar will rise higher for assessing progress in meeting sustainability goals.
Remember, this is no longer just a short-term fad or public relations exercise.
It’s now a mandated future reality.
Enter higher demand for sophisticated EI tracking technology.
Right now, EI is still a relatively new concept. Just under a third (31%) of all organisations globally are using or exploring this space.
So there’s still plenty of room for adoption of this emerging trend…
But there’s already one Aussie company I believe is leading the charge. And you’ve probably never even heard of it.
With origins dating all the way back to 1990, this pioneer was exploring and innovating EI technology long before the concept of ‘EI’ was even a thing.
But it’s only now that the company can finally seize its opportunity to capitalise on the EI revolution’s tailwinds.
That spells out an opportunity for you too.
Luckily, it’s already ahead of the curve, with its cutting-edge software commanding a loyal and impressive clientele around the world…
In mining, the likes of Fortescue, BHP, and Vale count among its users.
And in aviation, Heathrow, Los Angeles, and New York are just some of the many airports utilising its technology right this second.
It’s even been invited to work with NASA!
Those connections alone are a strong endorsement of this company’s calibre of software.
But the numbers are impressive too. Its last accounts showing growing gross profit, annual recurring revenue, and installed sites.
With undeniable traction in a large and growing global market, this momentum looks set to continue.
But I’ve said enough.
You can get the name of this stock — and all the other stocks already talked about — in a report called ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
This report is yours today, if you want it.
But before I show you how to get your own copy, I should introduce myself properly.
I’ve been involved in the investment markets for years.
I’m a trader…a market analyst…a writer...and I teach people how to trade stocks.
I’ve run trading seminars, I’ve been on TV, I’ve spoken at investment conferences…and my daily financial email (The Daily Reckoning Australia) has about 60,000 subscribers.
People in the industry always overcomplicate investing.
But in my experience, achieving success boils down to a simple, basic principle anyone can learn — and it can lead you to fantastic success, in ANY kind of market.
I believe the best way to grow wealth is to find and back the stocks that could go up hundreds of percent. And I’ve come to learn that your best shot at doing this is if you focus on two things:
And then you match those companies with…
All we need to do then is get on board for the ride.
For example, I remember back in January 2016 I researched and wrote an in-depth report on the burgeoning lithium boom.
That same month, I reported on a huge US$5 billion development taking place in the desert of Nevada, US…
We were talking about billionaire Elon Musk’s ‘Gigafactory’.
It’s old news now. It wasn’t then.
His electric car company, Tesla, planned to use this area of 10 million square feet — the equivalent of 174 American football fields — for one thing:
To produce more lithium batteries than the entire world combined.
I saw an immediate opportunity in lithium stocks, and profiled no less than six of them for our readers in a special report.
Here they are, along with their peak gains in the months after:
Four months later, on 8 April 2016, respected journalist Trevor Sykes wrote in the Australian Financial Review:
‘The hottest commodity of the year so far is lithium’.
Our readers didn’t need him to tell them.
And, in fact, my groundwork in this market has come in very handy for one of the little gems you’ve already learnt about.
Point is, in Australian Small-Cap Investigator, this is the kind of advantage I hope to bring people like you.
By that, I mean share my best investment and trading ideas with private investors who want to make better, smarter decisions with their money.
Now if that sounds like you, I have a proposition for you.
A very compelling one, I hope.
I’d like to invite you to try Australian Small-Cap Investigator for yourself.
Because let’s face it, I can tell you how excited we are about the stocks we’ve found until I’m blue in the face.
But it’s not what I think that matters…
It’s what YOU think.
Only you can decide if our research is as good as I say.
And to make that call, you need to try it out.
See it with your own eyes.
Kick the tyres, as the expression goes.
So here’s what I propose.
Give Australian Small-Cap Investigator a try today. The second you become a member, you’ll get access to the report I’ve been telling you about, ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
This report contains everything you need to know to buy these stocks. It’s all there for you. All our research. Our analysis. The risks, the potential rewards — everything.
That report is yours, right off the bat.
That can all be yours, in the next few minutes.
Don’t worry about the cost.
A one-year subscription, including everything I just mentioned, plus 12-monthly issues of our work, each with a new stock opportunity — comes to $149.
But right now, you can try our work out for half the normal rate. You’ll pay just $69 for an entire year.
Why so cheap?
Well, to be honest, our business really only works if our subscribers stick with us for the long term. But we realise you’ve got to try our work first, to see if it’s right for you.
And that's why, through this letter, we’re making it so cheap to try.
What I mean is, you’ll have the next month to take a look at everything we send you, protected by a money-back guarantee.
If, for any reason, you decide my work is not right for you, just let us know and you can receive a full refund of the subscription cost...and keep everything you’ve received.
In other words, by taking me up on this offer, you are giving yourself the opportunity to TRY my work to see if you like it.
I reckon it will be one of the best financial moves you ever make.
Why?
It’s pretty addictive.
You hear about a cool little company doing something new or unusual in the pages of Australian Small-Cap Investigator…
You take a stake, using capital set aside for high-risk, high-reward situations…
Then you wait…watch…and see what happens.
Sometimes something happens — a set of results, a product launch, a big new partnership — that makes the market ‘wake up’ to what’s going on.
Other times it’s less clear-cut.
Either way, we want to find stocks that could become tomorrow’s household names — and buy them early.
It’s simple. It’s great fun. And when it comes off, it’s like no other feeling.
Of course, I wouldn’t be doing my job properly if I didn’t tell you about the risks too. Risk is part of investing. Small caps are higher risk than many companies. That’s the trade-off. You take the risk of losing some or all of your investment.
That’s why you should never invest money you can’t safely afford to lose. There are no guarantees here.
But you know if things go well, you have the chance to make a lot of money.
Like VEEM [ASX:VEE], an ASX-listed manufacturer that makes stuff most people have never even heard of.
Like a ‘gyroscope stabiliser’.
Ever heard of that?
Unless you work in the shipping business, you probably haven’t.
But, in its niche, VEEM is a top performer. It has ties to the Australian military and big shipbuilders like Damen Shipyards.
Ryan joined the dots on VEEM’s business for Australian Small-Cap Investigator readers in April 2019. At one point later, it was up 117%. What about now? Subscribe and find out!
Though, of course, not all of our picks make that kind of move. It’s more proof of what I’ve been telling you about: finding small-cap companies excelling in their field before the wider market does is one of the most exciting ways to invest your money.
But it’s not just all about the feeling. The numbers back me up: small-cap investing is one of THE best ways to ‘juice’ your long-term returns.
A Schroders report in 2019 proved this pretty emphatically.
It showed that, between 1966 and 2019, the group of small-cap shares studied beat large caps hands down in both the US and Britain.
In the US, a $100 investment in large caps in 1966 would have been worth $15,576 by 2019.
But this particular group of small shares returned four times as much, turning that same $100 into $56,323 in 2019.
This chart tells the US story — it compares the total return index for small caps with the total return index for large caps:
Massive outperformance by the small-cap index.
It’s the same story in Britain.
Here they compared the total performance of the bottom 10% of companies on the market…with the top 641.
Again, this group of small shares beat their large-cap counterparts by five to one:
And it turns out that here in Australia, small caps have a great history of outperforming right after bear markets like we saw last year.
The average return for small caps in the six months after a crash has been 36% (represented by the S&P/ASX Small Ordinaries Price Index)...compared to 22% for larger stocks (represented by the S&P/ASX 200 Price Index).
Of course, smaller shares are riskier and much more volatile. That’s why you should only invest capital you can afford to lose.
Why is that?
I’d offer up three reasons.
As Warren Buffett told Businessweek:
‘It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.’
Notable that Warren Buffett considers $1 million ‘not a lot of money’. But this is a man with billions of dollars under management. And his point is valid. Small-cap stocks are one of the last remaining places that the ‘little guy’ has an advantage over the big money. And we take full advantage of that.
‘Analyst coverage for small caps is low. On average, only 5 analysts cover each company in the [small cap] MSCI ACWI ex US SC, versus 10 analysts in the [large cap] MSCI ACWI ex US.
‘About 20% of companies in the [small cap] MSCI ACWI ex US SC have no analyst coverage. Given the breadth and depth of the international small cap asset class (more than 4,300 stocks across 46 countries), there can be significant research costs incurred to invest in this space.’
In other words, 20% of the time, no one in the financial world is even paying attention to what these little stocks are doing.
But we are.
That’s our edge.
Now look.
There are three more stocks I want to showcase for you.
But maybe you’re already with me.
Maybe you get it already — and you’re ready to take the plunge and give Australian Small-Cap Investigator a go.
If that’s the case, great.
Just $69 will get you one brand-new share tip in each monthly issue for a year.
You’ll get the potential risks and rewards, when to get in, and what I think is a realistic target price.
PLUS, I’ll tell you what action to take on your existing shares, whether to buy more, sell completely, take a portion of profits, or hold your position for the time being.
You’ll also get regular email updates, where we pass on time-sensitive tips, developments, or changes to your holdings.
$69 is nothing for all that.
But the lifeblood of it all is one thing: small, innovative companies pursuing BIG opportunities.
With that in mind, let’s briefly dig into the next stock...
Imagine there was a way to make plastic ‘self-destruct’ after just 12 weeks.
So instead of taking centuries to degrade — and filling up landfills or polluting the ocean — imagine if plastic was ‘smart’ enough to simply decompose itself a few months after use.
It’s a simple idea.
But it could have profound consequences — both for the world at large…
…and the tiny ASX-listed company that has pioneered this ‘smart plastic’ technology.
It is forecast to grow its revenues 10-fold in the next two years.
And it could be a great way to play one of the biggest trends in the world today.
Let’s face it — the ‘war on plastic’ is in full swing.
You’ve probably seen this yourself in recent years. It’s been hard to miss.
Pretty much every major nation worldwide is now legislating against the use of plastic bags…plastic packaging…and single-use plastics of all kinds.
It’s easy to see why.
Over the next minute, one million plastic bags will be used worldwide.
By this time tomorrow, that number will jump to 1.4 billion.
And in the next year…500 billion plastic bags will be used — most of them for just 15 minutes.
This is a worldwide problem. But let’s just focus on our own country. Every Australian uses 130 kilograms of plastic every year.
Most of that plastic will take anywhere between 20 and 500 years to biodegrade.
That means it’s likely to be sitting in a landfill or polluting the oceans for centuries after we’re gone.
That’s a huge waste.
Especially when you consider the average plastic bag has a ‘working life’ of just 15 minutes.
But I’m not here to be all doom and gloom…
Because where some people see a major problem — others see a major opportunity.
This little Melbourne company has pioneered a technology that could flip this equation on its head.
It’s created a unique resin that makes plastic biodegrade a LOT faster.
We’re not talking centuries here.
Or decades.
We’re not even talking years.
This ‘smart plastic’ decomposes in just 12 weeks…and completely biodegrades in six months.
That’s a big deal.
It means this little firm could soon play a key role in the rapidly growing bioplastics market, which is forecast to be worth US$26 billion by 2027.
And yet, this company trades for just 30 cents right now.
It’s tiny.
But like all the stocks you’ve learned about today, it could have a BIG future.
The company has no debt…it’s forecast to make its first small profit this year…and then grow its profits by more than 1,000% by the end of 2023.
It’s another prime example of what we’ve been talking about.
A small company with huge potential.
Of course, there are risks. Nothing is guaranteed. It never is with small caps.
But if this company succeeds in getting its smart plastic out into the market and grows its profits in the next few years — its share price could rise hard and fast.
The best way to capitalise on that potential is to accept my offer to try Australian Small-Cap Investigator out today.
You’ll get the name and full write-up on this stock in your report, ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
But I’m still not done.
Let me tell you about the NEXT opportunity I’ve found for you…
10 May 1869…
Four men — soon to be amongst the richest in the world — get off a train at Promontory, Utah.
The most famous amongst them was the Governor of California, Leland Stanford, who would go on to found the university that still bears his name today.
The men were there to formally open the US’s first transcontinental railroad, linking the two halves of the country together at last.
And an occasion of great celebration.
‘Everyone had all they wanted to drink all the time,’ said Alexander Toponce, a beef merchant who was there.
‘Some of the participants got “sloppy”.
‘I do not remember what any of the speakers said now, but I do remember there was a great abundance of champagne.’
It was a moment that changed everything. As the final spikes were driven into the track, telegraph signals simultaneously alerted San Francisco and New York, where a cacophony of tolling bells and cannon fire resounded.
Suddenly, a journey that had taken four months by cart or ship now took just a week.
And the men who’d financed the project became rich beyond anybody’s wildest dreams.
They became known as the ‘Big Four’, building ostentatious mansions in San Francisco’s famous Nob Hill district.
When you boil it down, the secret to their wealth was simple.
They made it quicker and easier to get goods from one place to another.
Look back through history and you see that breakthroughs like this have often led to sudden leaps forward for civilisation…and often great wealth and power.
The Romans built great road networks to transport their armies…
The Spanish and Portuguese founded overseas empires thanks to their great caravels…
Britain’s network of canals and railways helped accelerate the Industrial Revolution…
And in the last century, trucking, air travel, and modern shipping have connected the world in ways that had never been possible before.
But now a new revolution in transportation and logistics is beginning — and there are trillions of dollars at stake.
It’s not built around a new kind of boat, train, or vehicle.
But around the operating system these logistics networks run on — what I call the ‘invisible railroad’.
See, there’s a mind-boggling level of complexity involved in tracking supply chains…shipping networks…and fleets of trucks and trains.
Anything that helps speed that process up — making it smarter or more efficient — can be incredibly lucrative.
For instance, the global logistics market is projected to be worth US$12.9 trillion by 2027.
To put that into context, it’s almost twice as valuable as the entire global banking system.
So we’re talking big money here.
That’s where my next company comes in.
It runs a logistics ‘software-as-a-service’ (SaaS) platform — a cloud-based software system that allows businesses to track stuff as it travels through the air…over the seas…down highways…and all the way to your door.
This is big business.
And the company’s software is already used by all kinds of businesses — from banks to bike couriers.
Sorry to sound like a broken record…but everything you need to know is in your copy of ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
All you need to do to get your copy is to CLICK HERE and head to the secure order form. We can have you set up within minutes.
And keep in mind: you don’t need to make any long-term commitments today. Your subscription fee is protected by a 30-day money back guarantee.
In short, you have a decision to make…
I’ve just given you a whistlestop tour of some of Australia’s most exciting small companies.
Now it’s over to you.
Do you want to share in the excitement — and profit if one of these companies ‘strikes it big’?
Or would you rather walk away and never know what could have been?
It’s your call.
If you want in…there’s just one thing you need to do.
Hit this link and we’ll get started right away.
But wait!
There’s a SEVENTH stock for you…
Let me quickly lay out the opportunity:
This last pick is an ambitious and innovative tech start-up that could soon become one of Australia’s next top-performing AI companies.
The kind of business that goes from David to Goliath in one incredible surge of growth.
We’re already seeing this start to happen now…
It’s a software-as-a-service (SaaS) provider that’s promised to create ‘the buying experience of the future’.
And its smart sales enablement software — driven by cutting-edge AI technology — is perfectly positioned to benefit from a rapidly growing market…
The total addressable market for sales enablement solutions is sitting at US$1.7 billion and is projected to climb to US$7.3 billion by 2028 as demand soars.
There’s a strong chance this AI visionary could reward its early backers handsomely.
Especially after you look at the numbers…
The company just posted a record revenue of US$45.9 million in the first half of FY22, up 142% to the prior corresponding period.
Interestingly, 98% of that revenue is subscription-based.
That’s clear-as-day proof that this minnow is offering real value to its business-to-business (B2B) customer base…
Which presents a unique opportunity for fast-thinking investors like you.
But that’s not all…
Over the next six-month period, the company’s expected to lock in six months of deals with the likes of Reddit, Delta Air Lines, and global fashion giant, Guess.
What could this mean for the share price?
And what exactly gives this little company such an edge?
It’s all laid out for you in your report ‘Seven Potential ASX Wealth Accelerators for the 2020s’.
It’s ready and waiting for you.
All you need to do is hit this link and give Australian Small-Cap Investigator a go now.
I’ve taken up enough of your time.
Now it’s over to you.
Are you in…or out?
Here’s the link you need to get started.
Best,
Callum Newman,
Editor, Australian Small-Cap Investigator
What will you send me?
First off, you’ll get instant access to three critical investment reports. These are designed to get you up to speed with our thinking and our latest small-cap opportunities.
‘Seven Potential ASX Wealth Accelerators for the 2020s’
‘A Beginner’s Guide to the Australian Stock Market: How to Buy and Sell Shares on the ASX’
You’ll then be handed the ‘keys’ to the entire Australian Small-Cap Investigator archive. All of our previous share tip write-ups and all of our current buy recommendations
You can get all that, and, if you’re still not quite at ease with the whole thing, request a refund of your subscription fee within 30 days.
From there, you’ll receive a new issue and stock recommendation (occasionally two) per month. We’ll tell you what we believe the risks and rewards are, when to get in, and what we think is a realistic target price.
PLUS, we’ll tell you what action to take on the existing stocks on our buy list, whether to buy more, sell completely, take a portion of profits, or hold your position for the time being.
You’ll also receive regular email updates, with any news that might affect your share tips.
Is this a scam?
No. Australian Small-Cap Investigator has a proud history, starting March 2007.
No financial publication could have anywhere near that longevity if it was a scam. ASIC would have closed it down long ago.
Fat Tail Investment Research has an outstanding 4.7-star Google rating. I encourage you to read the many rave reviews there.
We’re part of a publishing group that’s been around since 1979.
Our business is regulated in Australia by ASIC. Both Ryan and I are fully accredited stock analysts, which means we’re able to give general investment advice in Australia.
We get that people are sceptical. If you are, please read the newsletter over the next month.
You’ll quickly see that this is the real deal.
What guarantees can you offer me?
No one can guarantee you success in the markets. If someone offers you this, run a mile. There are no guarantees with any form of investing.
Small-cap stocks are high risk.
You could lose money. Be sure you’re OK with that. If you want to be in the running to make big money from the winners, you have to be comfortable with the risk.
The stock market is uncertain. And that’s because LIFE is uncertain. No one can see the future. That’s why you should never invest more than you can safely afford to lose.
All we can do is provide the best defence against that uncertainty: Meticulous research.
Of course, I can guarantee you that if you don’t like what you see, for any reason, you can walk away with a full refund of your subscription cost any time in your first 30 days.
What are the risks?
All stock market investing involves risk. There’s no point swerving that. And anyone who tells you otherwise isn’t being honest with you.
Because the winners can be bigger than normal. But the losers can be bigger than normal too.
The specific risks involved with this kind of approach depend on the stock opportunity. This varies. But we will always highlight the risks along with each recommendation.
My only brief is to find stocks with really big gain potential. That means small caps and sometimes microcaps. You should know they tend to be much riskier than blue chips because they are hypersensitive to news and announcements.
The value of these stocks can jump up rapidly, but can fall back just as rapidly.
In other words, never invest more than you could comfortably afford to lose on any one recommendation.
What if I get stuck?
First ‘of all, don’t panic!
Second of all, read the just-published report ‘A Beginner’s Guide to the Australian Stock Market: How to Buy and Sell Shares on the ASX’.
That contains a whole bunch of great content that will help you in many areas of small-cap investing. Practical stuff that even experienced small-cap investors should find useful.
When you join Australian Small-Cap Investigator, you’ll also receive phone access to our member services team, plus an email address through which you can ask any questions related to your subscription (although we can’t give personal investment advice).
Ready to get started?