Friday, July 18, 2008

Nettel Holdings Update w/ Mike Russo


Nettel Holdings Reports Progress on Tougi Scrap Metal Operation
Marketwire(Fri, Jul 11)

Why Small-Caps Now?
History teaches us that the biggest gains are often had when people think things will never get better. There have been nine recessions since 1953, lasting between seven and sixteen months each. Small-cap stocks have gained an average of 11.4% during these recessions. They averaged a 13% gain one year after the recessions, a 76% gain three years after the recessions, and hold on to your hats, a 506% gain ten years after the recessions.

Consider the eventuation coming out of the 1974-1975 recession. Small-cap stocks gained 53% in 1975 compared to 37% for large caps. Small-Caps again beat large caps in 1976, 57% to 24%. In fact small-caps beat large caps for eight years running from 1975 to 1982. Market cap aside, both categories rewarded investors who stayed the course or invested when others were selling.

It is our opinion that the current sell-off represents an exceptional opportunity in small-cap stocks, both in the short term and for investors with a 3-5 year time frame to invest their money.

A final reminder, you don't get rich by doing what everyone else is doing. Think contrarian, there will always be overlooked investments that are undervalued by the market.

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