Coming at you today with a new pick. So far all of our positions are holding up just fine, even after the market correction and increased volatility.
A quick glimpse in the Tao Stock Tracker will show you that we are still up on all over positions not including dividends. We also still have a wide margin from hitting our trailing stops.
Lets add to our portfolio today with a micro-cap closed ended fund that is heavy on industrial stocks.
Royce Micro-Cap Trust, Inc. is a closed-end diversified investment company whose shares of Common Stock ($RMT) are listed and traded on the New York Stock Exchange. The Fund’s investment goal is long-term capital growth, which it seeks by investing primarily in equity securities of companies that, at the time of investment, have market capitalization of $1 billion or less.
As you can see below, the stock is in a upward channel just below it’s 50-day moving average. I expect the fund to continue trading this way for some time.
If the U.S. does get a infrastructure bill passed these smaller industrial stocks could see a lot of action. They are also no doubt benefiting from the reduced corporate tax rate to 21% from 35%.
The fund has a yield of 8.5% and is also trading below its net asset value.
As a benchmark the fund more often than not beats the Russell 2000 index.
You can see in detail how the fund is weighted by industry and it’s heaviest wieghted positions in the following link:
Recommendation: Buy the Royce Micro-Cap Trust, Inc. closed ended fund (RMT) today 02/21/2018. Our stock tracker is using a 25% trailing stop loss as a sell rule.by