Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Underexposed Canadian Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Underexposed who wrote (1)	12/14/2017 2:38:08 AM
From: Underexposed	Respond to of 65

Correction: When I composed that first message I made a mistake by not adding ETFs to the totals of Canadian Stocks. There are no ETFs in the TSXV but the TSX has 613 ETFs in that exchange, this means the TSX + TSXV exchanges has 2420 + 613 = 3033 listed companies. This does not change the calculation much Oil/gas, producers, pipelines or service companies or about 9.9% of the listings. mining and precious metals or about 36.2% of the listings. It does not change much... just lowering the percentages a few points ************************************************************************************************************************ When I started investing in American stocks I had been investing in Canadian stocks for 2 years and without investigating the American market I assumed it was similar to the Canadian market. I could not have been more wrong. I have created a couple of charts to show this Canadian Stocks (TSX and TSXV) Most of the Canadian venture stocks at less than $1.00/share. Does this mean that a trader should avoid the TSXV?... hockey Pucks NO! You really have to be careful in the $0.01 - $0.99 but there are many good finds in this range. This is the Canadian penny range. Many of these stocks are not worth looking at especially if the stock price is less than$0.40/share. However, this is where O&G startups/junior companies in the O&G and Mining industries have their beginnings. They toil in this underbelly and as they become revenue producers the start to rise or are objects of a takeover. Canadian juniors are not like American juniors who start an IPO in the $10+ range.... that astonished me when I saw this... it made no sense to me to see unproven startups be priced so high on speculation. I will elaborate more on my "rules" investing in penny stocks in another post. The TSX stock distribution is a bit ragged but roughly look a bit like a normal distribution with a MAX at stocks between $10 - $25 per share American Stocks (AMEX, NASDQ, NYSE) The AMEX is basically all ETFs with a pretty normal distribution with a max at $25 - $49.99 the NYSE and NASDQ have similar profiles but are a little more evenly distributed. If I compare Canadian and American stocks as a whole I get. This last chart gives us a good overall look at the difference between Canadian and American stocks. Canadian stock distributions are skewed to the small prices whereas the American stocks are skewed to higher priced stocks. Is it any wonder why Americans don't generally look to the OTCB for investing opportunities??? In Canada we generally consider a penny stock to be in the range of $0.01 to $1.00... we call stocks with lower prices "sub-pennies" This is the realm of Sharks and Fishes... no serious investor will venture that low. In America they consider a $5.00 or less to be a penny stock. I was shocked at this since a $1.00 - $5.00 stock in Canada is usually thought of a stock that is gathering momentum and becoming mature. This was my waterloo when I started my US Dollar portfolio. I assumed American stocks were similar to Canadian and I put money into the $1- $5 US stocks and frankly lost my shirt. But this is a Canadian thread... future posts will discuss finding good Canadian stocks** UE