FAQ


Why is your service free?

Our business model is an investment fund seeking long term return on investment across a small cohort of quality ASX listed micro-caps.

We share our research and commentary for free with our readers who can decide to co-invest in the companies we are invested in directly via their stockbroker or trading platform.

Part of our business is helping our portfolio companies get investor attention - we charge a fee for this service. We request this fee to be settled in company stock (shares) so we can increase our position in each of our investments.

Last Updated: March 2021

Is there a paid service where I can get your commentary before everyone else?

No

Last Updated: March 2021

What does it mean when you "invest" in a stock? Why is it cheaper than the market price on that day?

We make investments through a mixture of cash and a provision for investor awareness services.

We may get access to private stock placements where we can secure shares at a discounted market rate.

Last Updated: May 2021

Whenever I try to buy a stock that you have initiated coverage on it is already up 20-30% what should I do?

We can’t offer personal advice.

We share information about new investments when we make them and our commentary on developments from our existing long term portfolio companies.

Feedback from our readers has been very positive after many of our investments have performed well over the last 12 to 18 months, hence our subscriber list is growing.

We are long term investors who share our commentary on our investments - when we write about one of our investments the share price may or may not rise.

Last Updated: March 2021

Do you have a conflict of interest with the companies that you cover in your reports?

Our business model is an investment fund seeking long term return on investment across a small cohort of quality ASX listed micro-caps. We share our research and commentary for free.

We require that our portfolio companies engage in our investor awareness program to reach new investors for which we charge a fee to cover the cost of our analysts, writers and other operating costs.

As investors who have performed significant due diligence on the companies that we cover, we prefer to take the fee for this investor awareness service in shares in the company, that are subject to escrow and trading blackouts.

We have disclaimers on our content explicitly alerting readers to the fact that we seek to do business with the companies that we have invested in and that there may be a conflict of interest. This disclaimer is found in every article and email communication.

Last Updated: April 2021

Do you inform subscribers when you sell?

Our general selling strategy is outlined in our "How to make money investing in small cap stocks" eBook which is given to all readers once they subscribe.

We have listened to reader feedback and will soon be publishing our selling strategies for each individual company on the company summary page. Again, this will not be personal advice for any reader.

We generally aim to hold our entire initial position for at least 12 months to get the capital gains tax discount.

Last Updated: March 2021

When should I sell a stock?

We can’t offer you personal advice.

We share our own investment philosophy in our "How to make money investing in small cap stocks" eBook.

Last Updated: March 2021

If I give you money, can you invest it on my behalf? Do you have a private fund that I can participate in?

Sorry - our fund is not open to external investors.

We are exploring this possibility but there is a lot of extra work and licensing required to manage a fund that is open to public investment and we are a small team.

Last Updated: March 2021

Why has <Catalyst Hunter Stock> price declined since I purchased it?

Share prices go up and down which depends on many factors.

Some of our investments spend months below the price where we invested, and some never go back above our investment price. This can and will happen in small cap investing.

As long term investors, we don’t focus on monthly price fluctuations. Our goal is to invest in companies that can achieve a sustained share price re-rating over the medium to long term.

We held all of our portfolio positions through the COVID19 market crash during March 2020 even though the prices all went well below our entry price.

Our performance is shown on our portfolio page.

Last Updated: March 2021

How do I buy the stocks in your portfolio? How do I do this if I am overseas?

There are many online trading platforms available, or you can engage the services of a stock broker.

We suggest consulting an advisor before making any investment, and most importantly with in the small cap market, only invest what you are prepared to lose.

Last Updated: March 2021

What is your opinion on <Stock>? Can you take a look at <Stock> and let me know what you think?

We can’t form an opinion or comment on stocks that we don't know about.

It takes us months of research and getting to know management before we are comfortable enough to invest in a new company and write about it publicly.

We are a small team and are very busy analysing potential stocks to invest in, so unfortunately, we can’t comment on stocks aside from those that we publicly make available on our website.

Last Updated: March 2021

What is your investment strategy? How do you choose which stocks to add to your portfolio?

  1. Our industry network introduces us to pre-screened investment opportunities.
  2. Our trusted advisors and sector experts help us assess the investment.
  3. We conduct regular meetings with company management to build trust and a relationship.
  4. Our in-house team of analysts conduct due diligence and analysis using our 20 point check list.
  5. Our investment committee makes the final investment decision.
  6. We aim to increase our investment as the company delivers over time.
  7. We aim to hold the full position for at least 12 months and top-slice as the price rises.
  8. We aim for “free carry” within 24 months of investing (free carry means to sell your initial investment $ amount and leave the profit invested for the long term)

Themes we currently look for (current as at March 2021):

  • Undervalued stocks,
  • Battery metals, (especially in Europe)
  • New Green energy
  • ESG focused companies
  • Some traditional energy

We will generally invest again two or three times after we initiate coverage on a company if they deliver on their promised strategy over time.

Last Updated: March 2021

What assurances do readers have that you don't sell your stock right after you do a promotion?

We have strict trading blackouts in place for our fund and every team member when we release commentary on any of our investments.

We also generally enter voluntary escrow agreements to not sell our shares within a certain time frame of investing.

Historically, we have made the best returns carefully researching and choosing only the best companies and holding them over a long-term period.

Last Updated: March 2021

When should I buy a stock? Do you provide BUY recommendations?

We will never issue buy recommendations.

We share our research and commentary on why we have invested with our readers, who then can make their own decisions.

We will write about new investments we make and provide commentary on our existing portfolio companies as they execute on their strategy over time.

Last Updated: March 2021

How much money should I invest in a company?

Any investment decision you make should be based on your own current financial objectives, situation, needs, and risk profile.

Always discuss investment decisions with a professional investment advisor before making a decision.

As a good general rule in the world of ASX small cap speculative investments, you should only invest what you can afford to lose.

Last Updated: March 2021

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