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4 small-caps on steroids

Can cheap shares in companies with high debt levels actually make good returns?
4 small-caps on steroids
  • Disappointing performance for small-caps on steroids during the "dash for trash"
  • Rollercoaster first three years.
  • Four small-caps on steroids for the next 12 months

The past 12 months should have been a time for my Small Caps on Steroids screen to shine. That’s because the screen focuses very much on the trashier end of the small-cap value spectrum. 

It was these types of companies that saw their shares rocket most when vaccine breakthroughs were announced last November. The news sparked a so-called “dash for trash”. This is a common phenomenon when economic storm clouds begin to clear and investors anticipate a recovery. The weakest companies with shares at near-death valuations tend to benefit the most as they’re rapidly rerated to reflect expectations that they may live another day after all. 

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