Gamble of the week: A punt on Californian water

This US-listed small-cap stock owns plenty of California farmland, says Phil Oakley. But it's what lies underneath that makes this share a punt.

The smaller end of the stock market is stuffed with companies that make no money today, but have the potential to make lots of it at some time in the future if something good happens. Quite often, though, the profits never arrive and investors lose all their money.

These types of companies and their shares are very high risk. Normally, I wouldn't go near them, but as long as you are not investing your life savings, they can be a lot of fun.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.