The small caps index has outperformed the JSE all share in the past year, with the small cap index seeing a remarkable 52% increase compared to the JSE all share’s 24-25% rise in 2021. Anthony Clark, Independent Analyst for Small Talk Daily Research, shared insights into the performance of small caps and his top picks for 2022. The performance of small caps in 2021 exceeded expectations, with many stocks experiencing significant gains of up to 100% or more. The industrial sector emerged as a strong performer, defying expectations of weak economic growth and government policies. Companies like Bolemet, Arjun Industrial, and Santova stood out with earnings growth surpassing market expectations. Anthony Clark highlighted the trend of corporate activity and deal listings continuing into 2022. He identified potential corporate targets and shared his top five stock picks for the year. Renagen, Invicta Holdings, Sabcap, E-Media, and Where Sies were among his selections. Renagen, an alternative energy company, and Invicta Holdings, an industrial stock, were expected to see significant growth in 2022. E-Media, a broadcasting company, and Where Sies, a player in the PGM space, were considered wild card picks with high potential. Anthony Clark’s optimism for 2022 was fueled by the resilience of industrial and agricultural stocks. He emphasized the impact of heavy rains on the agricultural sector, leading to potential yield issues for key soft commodities like maize and soya. Anthony recommended Sea Harvest and Libstar as top picks in the food sector, expecting Sea Harvest to benefit from the fishing rights allocation process and highlighting the potential for restructuring in Libstar. Overall, Anthony Clark’s analysis provided valuable insights into the small cap market and presented investors with a diverse range of stock picks for the year ahead.
