A colleague asked me recently if I invest in local small caps since I have been blogging about SReits, Oil, Bonds, ETF but not the small caps.
Well, I do actually.
It is just that I got burnt so badly by small caps and red chips in my earlier years of investing that I now trod very carefully with them. But (sign) I still got caught with Noble Group (yes it is a small cap now. It used to be such a proud blue chip on STI. How fortune changed!)
For me, small caps are companies that have a market capitalisation of < 500 Mil S$ (but excluding Reits and Business Trusts as I track and analyse them differently)
The small caps on my watchlist are:
(in alphabetical order, market capitalisation in brackets)
(1) Cogent (378.015M)
(2) Hotung Investment (180.76M)
(3) Lee Metal (149.48M)
(4) Noble Group (400.404M)
(5) Old Chang Kee (101.95M)
(6) PEC (156.59M)
By the way, this is to share a list of small caps that I track. This is not an endorsement of the financial conditions of these companies nor a list of companies that I am recommending to accumulate. I may blog on some of them in the future.
Some people say that the small caps offer exponential growth opportunities while the large caps offer stability and income/dividend.
So, if you believe so and are interested to invest in small caps, maybe you can start looking at these companies.
Alternatively, have a look at FTSE ST Small Cap Index (FSTS.SI) for inspiration, read more here.