In yesterday’s MoneyWire, we talked about how you need to hunt elephants and not mice when picking microcap stocks.
Well, there’s a more technical term for that, too. It’s considering the company’s total addressable market, or TAM for short. Simply by doing that, you can find stocks that turn the average investor into a millionaire.
The TAM is basically the potential size of a specific sector or trend in dollars. The larger the TAM, the larger a company’s upside potential. For example, a restaurant that offers everything from burgers to pizza to vegetarian food has a much larger TAM than a restaurant that offers only plant-based Ethiopian food.
A fairly recent example of a microcap stock that went after a big market and succeeded is Monster Beverage (MNST).
Monster’s flagship product is an energy drink, full of sugar, caffeine, and other stimulants. It might sound like a niche business, especially if you like to stick with coffee. But Monster Energy became a phenomenon in the early 2000s when a huge shift in consumer tastes was going on. Millennials didn’t want Folgers Coffee. They wanted energy drinks.
As a result, the company’s drink revenue went from $50 million in 2003 to $1.7 billion by 2011. And by late 2007, the stock had already gained 16,000%!
Today, this pioneer in energy drinks is a household name, and the stock is up to $36 billion in market cap. The shares have climbed 21% in the past year, about in line with other large-cap stocks. But wouldn’t you have preferred those huge early gains? That’s what my Microcap Millionaire Project is all about.
Putting the TAM Effect to Good Use
At this point, Monster Beverage just sells energy drinks (18 brands in total), but it sells them all over the world. And the global beverage industry has a huge total addressable market.
Buy early in a stock like that, and you stand to make exponentially more money than you would otherwise.
Yet, in their early days, these companies are rarely followed by Wall Street analysts… often ignored by mainstream news outlets… and completely misunderstood by the average investor.
That’s why I decided to make an urgent warning for my readers… and why I’m holding an online event on Wednesday, February 5.
I’ll give you my most recent update on the timeline of today’s bull market — including how long you can expect this high-growth period to last.
I’ll also explain the #1 mistake investors are making right now. And how to make sure this error doesn’t cost you tens of thousands of dollars.
P.S. I’m proud to say that I predicted today’s bull market before it took off in 2009. And I spent two decades investing in microcaps on behalf of institutional clients. Now I’m going public with my new project to help mainstream Americans learn how to cash in on this lucrative market, too. Just a single microcap pick I made could’ve turned $10,000 into a rare $277,000. Click here to RSVP and learn more.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt discusses Amazon’s (AMZN) ascent to the $1 trillion value milestone. What does its rise tell us about investing and, more importantly, how do we find the next Amazon? Matt also dives into the upside potential of microcap stocks and unveils a new portfolio aimed at the smallest stocks in the market.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
Learn where Matt McCall sees
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