Small-cap stocks are generally an ideal investment for investors which a high-risk appetite. Small-cap stocks have a market capitalization of under $3B.
These companies provide a higher rate of return as they are generally driven by high growth prospects. These shares are also more volatile compared to mid-cap or large-cap stocks.
The Vanguard Small Cap ETF [VB] which is a broad indicator of the small-cap space, Ā declined over 3.3% last week. Here we look at small-cap stocks that underperformed the market significantly in the first month of Oct. 2018.
GoPro
GoPro [GPRO] shares fell 13% last week to close trading at $6.26. The stock has burnt significant investor wealth over the last two years due to a decline in product shipments.
GoPro launched the highly anticipated Karma drone two years back but had to recall shipments shortly after the product launch. The company then decided to discontinue the production of Karma and exited the drone market.
Earlier this year, GoPro has launched several products across price points to target different customer segments. It will be interesting to see if this will improve device sales and result in revenue growth for the company.
Market Cap: $931.5M
Year-to-date Return: -17.3%
Last week decline: $139M
Windstream
This telecom company has had a horrendous run in the last two years. Windstream [WIN] shares have declined 51% this year after slumping 76% in 2017. The stock declined 8.2% last week.
Some analysts believe the rising debt levels of Windstream might drive the firm to bankruptcy. Earlier this year, Michael Rollins from Citigroup [C], reduced Windstreamās price target to $1.
Similar to Windstream [WIN], Frontier Corp. [FTR] continues to underperform the markets significantly. The stock is up marginally by 0.7% this year. It has however declined 22% in 2016 and 87% last year. Shares fell 5% last week.
Though this initially resulted in cost savings, the cord-cutting phenomenon coupled with the demand for a cable-based internet impacted the companyās revenue.
FTR has to discontinue its dividend payouts and impose a reverse stock split to continue trading on NASDAQ.
Market Cap: $720.57M
Year-to-date Return: -0.74%
Last week decline: $37M
Pandora
Shares of music streaming company, Pandora [P] declined close to 6% last week. In the last week of Sept., the stock rose 4.6% as Sirius XM [SIRI] announced its intention to acquire Pandora for $3.5B.
Pandora shares have had an impressive run in 2018, as the stock has risen close to 86%.
Market Cap: $2.41B
Year-to-date Return: 86%
Last week decline: $140M
Fitbit
Fitbit [FIT] too has burnt significant investor wealth in the last two years. This stock fell 73% in 2016 and 25% in 2017. Shares have slipped close to 12% in 2018 as well.
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
Iām interviewing a tax expert about how real estate investors avoid paying taxesin perpetuityāAND how everyday citizens can do the same thing.
(Real estateāour TEMPLE I and TEMPLE II projects includedāhas a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
Thereās the 1031 exchange, of course, which Iāve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREEāas long as said property is worth the same or more.
But thereās ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
PS: In our next update, Iām going to break down how real estate moguls get paid from their propertiesā¦tax free. š PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
If thereās anything the pandemic taught us, itās that the paradigm of āofficeā and āworkspaceā has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run fromā¦wherever. š²
This is my office for the dayā¦
I am actually running our business from the beach, typing this from here.
Itās 4:28 pm CET, which means itās 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while Iām asleep. Thatās the š)
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. š„
Let me repeat thatā¦3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelonaā¦Nat in New Yorkā¦Vineet & Arif in New Delhi.
Well, the first step is to have an actual side hustle youāre launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until youāve made your FIRST DOLLAR! šššš
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnbāyou can start that in 10 minutes. Literally. (Hereās a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
Iām gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. šµ š
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if youāre ready to build some wealth and any questions if you want moreā¦
Letās get to work. š
PS: If you canāt be bothered with video and just wanna get to work, weāre hosting a TRIBE U workshopthat will help you get this process started on the spot. Itās $479 $49. š„
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
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