It is very difficult to find stocks that are worth 10 times in one year, but there are common features that can help you learn about this type of stock.
And Investor Place published a report on how to search for these stocks and what are their specifications?
Of the 8,187 companies tracked by Thomson Reuters - which specializes in major US stock exchanges - only 11 companies (or 0.1%) increased their share value 10 times compared to what it was in October of last year.
In addition, most of those looking for high-rise stocks go looking in the wrong places where they focus too much on finding a stock with a history and find "Amazon" (AMZN) stock - for example - forgetting that most tech stocks are slow and only lose value slowly.
And among the companies that made 10 times their stock last year, there were no high-growth technology companies, the closest of which was Upstart Holdings, whose stock is seven times the value of its initial offering.
In contrast, these companies were a mixture of:
1 - Non-profitable meme stocks such as AVIS, AMC, GME and MARA (MARA), and OCGN.
2- Oil and gas companies such as UAN, CDEV and SM
3 - Companies near bankruptcy are back from the brink of death such as HTZZ, AEHR and ACY
What makes a stock capable of multiplying 10 times?
Let's make one thing clear, "blue-chip" stock bets are excellent bets.
Anyone who bought Amazon stock in 2001 would have waited a decade to get a 10 times profit, which TESLA was able to achieve in just 3 years, but its shares stopped after that for the next 5 years.
Find high-rise stocks in Penny Stocks or small cap stocks
For a start, it is useful to recognize some of the common factors that determine a stock that can be multiplied by 10.
And it turns out that this type of company is cheaper, less profitable and indebted compared to ordinary companies.
Over-the-counter (OTC) securities also tend to outperform, with 4,779 listed OTC companies 506, or 10.5%, achieving returns of 1,000% or more.
Investors are more likely to find a "big profit" in this type of financial market than in typical markets.
This is why you will find investors looking for alternative exchanges to get great deals.
Last May, I recommended readers to buy shares in bankrupt HTZZ and indicated that its stock could become the largest OTC stock for 2021. Since then the shares have risen from 2.50 to more than $30.
Today, we'll cover 5 more companies with the potential for 10x earnings in 2022.
Five shares that can be multiplied 10 times next year
Reddit investors love substantive investing, and the success of video game company GameStop: GME has sent a mad rush to Bed Bath & Beyond. : BBBY) for retail stores.
So does AMC Entertainment for movie theaters and other low-quality mall stocks.
Meanwhile, the rise of Dogecoin DOGE-USD shares created an entirely new asset class;
We can tell with a quick look at the BSCScan data.
And now blockchain miners such as Marathon Digital Holdings: MARA can inspire next-generation investors with the soon-to-be crypto-share meme.
Rocket Fuel Blockchain, RKFL The San Francisco-based OTC securities firm has promised to provide one-click crypto payments to e-commerce systems.
PoSaBIT (POSaBIT, POSAF) This Canadian company is the leading provider of crypto-payments to the cannabis industry.
Both companies have reasonably experienced management teams with Rocket Fuel Blockchain being led by Peter Jensen, former CEO of a cloud cybersecurity company acquired by IBM, while Bosapet is managed by former Microsoft CTOs. (Microsoft NASDAQ: MSFT) and other leading companies.