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Strategies & Market Trends : Underexposed Canadian Stocks
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To: Underexposed who wrote (39)6/8/2018 2:48:38 AM
From: Underexposed1 Recommendation

Recommended By
bull_dozer

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There is a huge difference between the American stock market and the Canadian stock market. The Americans consider a penny stock to be less than $5.00/share. The Canadian market considers pennies to be less than $1/share. Americans basically ignore less than $5 stocks mostly considering them junk. In Canada, a stock worth between $1-$5 per share as junior stock taking the first steps to becoming a more mature stock.

You can see this by looking at the number of stocks at various price levels... When I did this long ago, this was a complete eye-opener to me and I suddenly realized why I was not being successful investing in American stocks (this was 10 years ago)

I am not including the USA grey market/pinks or Canadian greyish markets in this analysis

Price level .................................American stock total ........................... Canadian stock total

$500+ ...................................................... 18........ 0.24%....................................... 4........ 0.11%
$250 - $499.99 ....................................... 58........ 0.78%....................................... 2........ 0.05%
$100 - $249.99 ..................................... 517........ 0.70%.................................. 114........ 3.05%
$50 - $99.99 ........................................ 1170........ 7.02%.................................. 120........ 3.21%
$20 - $49.99 ........................................ 2607...... 35.38% ................................. 767...... 20.52%
$10 - $19.99 .........................................1372.......18.62%.................................. 466.......12.47%
$5 - $9.99 .............................................. 700......... 9.50%.................................. 219........ 5.86%
$1 - $4.99 .............................................. 796 .......10.80%................................. 335........ 8.97%
$0 - $0.99 .............................................. 130......... 1.76%................................ 1709....... 45.74%
............................................................... ____ ..................................................... ____
Totals..................................................... 7368 .................................................... 3736

As you can see over 50% of Canadian stocks are under $5...whereas with the American markets 50% of the stocks are between $10-$50.

Only about 12% of American stocks are under $5 and frankly most American consider them junk pennies.

In Canada our economy is resource based as opposed to America which is basically business/hitech. We have business/hitech stocks in Canada too but they are a minority compared to resource stocks.

I did not realize this when I first traded in American stocks. I naively hunted in my normal hunting grounds $0.50 - $5.00 and I started with just $10,000 in my American dollar account and over 15 years I successfully whittled this start point to less than $1000.

I learned a lot on this website and I would be better at doing American stocks NOW as evidenced by my phantom USA portfolio in my "Underexposed Technical analysis" thread. But I refuse to take a 25% hit on my money converting it to $US ... forex is the problem with investing in foreign stocks.

Under $0.50/share are mostly junk in Canadian stocks... the ones between $0.50 - $2.00 have junk in that range but also there are good resource stocks that are struggling startups. If you can successfully identify the best of breed in this range then you can make serious coin. My philosophy at the time was it it easier for a stock to go from $1 to $2 than from $20 to $40.. both at which get you a 100% gain.

I have changed that philosophy since then but I still check out stocks that are <$1... but it is more difficult right now since mining and O&G stocks in Canada have taken big hits in the last 18 months. Right now there seems to be hope...Trump with his dealings on NFTA is creating problems though.

I am currently looking for the best-of-breed in each sector... the survivors will eventually rise like a phoenix but currently I have a significant portion of my cash on the side.

I do have one stock though that currently is less than $0.40/share. I have held this stock for over 18 months. I have not made a dime on it yet but things look good as it is a biotech with a bladder cancer treatment which has passed Phase 1 of it's clinical testing.

It treats non-muscular bladder cancer (cancer in its early stages. There phase 1b trial was scheduled to treat 9 candidates for safety/tolerance and efficacy (lessening the cancer). Well it has only treated 6 candidates but not only did the 6 candidates safely tolerate the treatment but they all had their cancer eliminated! which has shortened the test and they are discussing phase 2 trials with Health Canada and FDA... very exciting!!!

I liked the science 18 months ago and these guys also are looking at brain and lung cancer as well... so not a one trick pony.

I am going to add this stock to the portfolio here with this statement

effective June 9, 2018 I will enter a bid at the start of the trading day for 10,000 shares of Theralase Technologies Inc [TSXV:TLT] @ $0.375/share

Americans can invest in this company using the symbol [OTC:TLTFF]

It is too late to discuss this stock and charts right now... I just wanted to make sure I got this bid in before trading tomorrow.

good trading
UE

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Disclaimer:

I am not a registered broker. I am retired and use Technical Analysis as the main tool in my investment decisions. Accept or reject my comments as you will, but do your own Due Diligence (DD) before making any decisions based on the information I provide.

Underexposed
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