When a stock is trading at a fraction of a cent, it’s usually a message for investors to abandon all hope and sell for the tax losses while they can. But ‘penny dreadful’ shares can sometimes rise from the ashes.
Blue-chips stocks have underperformed in 2016, so it makes sense to look beyond the traditional blue-chip stocks and also focus on the small-mid cap sector. Above all, companies with a focus on gold mining and exploration have outperformed the broader market. Australian gold and base metals exploration company Alice Queen Limited (ASX:AQX) is one of those companies that many have not heard of yet.