I wanted to put out a new small cap stock pick at the start of this month, but things weren’t lining up right for that. Gold and silver went up so much into the end of the year that I wanted to wait a bit to see if a pause or pullback would happen first. And one started last week. This is what is slowing down my favorite small cap silver stock right now that was my top December stock pick, which went straight up into New Years, but that will change when this pause period is over.
The right time will come in a few weeks to dive back into new small cap mining stocks, but there are other things starting to move this week. We’ve seen some interesting action in energy stocks and emerging markets. Tomorrow the Trump administration is set to sign some sort of trade deal or official trade truce with China that is helping sentiment around the world. The big thing is that the issue is going to be off the table until after the election.
I believe that emerging markets and commodities are likely to beat the S&P 500 this year and I have a new stock pick for you that combines all of these trends together.
When emerging markets rise and commodities go up you see shipping companies gain. Shipping stock SSW is poised to breakout and benefit.
Take a look at the chart for Seapsan.
SSW has resistance now at $14.50 and with its Bollinger Bands tightening looks like it is in position to breakout. I own it myself, but I think anyone could buy it and put a stop loss order on it under $13.50.
There is big value in the stock as it has a P/E of 8.26 and pays a 3.56% dividend. The company is based in Hong Kong and leases 119 containerships to shipping companies all over the world. It OWNS the ships others lease. You can look at a map of all of them by clicking here.
This is what moves the global economy.
I think the stock can go towards 20 if it breaks out. Now I know that’s not a 2X play or 3X play or a 10X play, but it can still be a fun one. I talked with Jordan Roy-Byrne about what types of stocks become ten bagger stocks in an interview you can find here:
http://wallstreetwindow.com/2020/01/how-to-find-ten-bagger-stocks-mike-swanson-01-13-2020/
-Mike
