The stocks under this category are high risky considering nil profitability track record and the analysis is based on business model and future growth prospects. Hence investors should carefullt evaluate such risks while investing.
Small-cap, micro and nano-cap categories and stocks with market capitalization as high as AUD 300mn with medium to long-term horizon.
Volatility in commodity prices, uncertainties arising from the extreme climate change, funding risk and delay in product launches are some of the associated risks.