Every year there are a handful of micro cap names that make a sustained ascension in stock price. Whether it’s ZAGG going from $3-17, MITK from $1 – 12, CVV from $4 – 19, JVA from $4 – 30, most investors can only pull up the trailing 12 month chart and think, “Woulda, Coulda, Shoulda”. Generally speaking, most micro cap mega multi baggers have two things in common:
1.) A big growth story benefiting from a bullish sector or industry trend
2.) A very tight share structure where any new buyer forces the stock higher
Here at MicroCapClub we try to find the next big multi bagger. This obviously isn’t easy. In my personal investment experience I’ve gotten in on the ground floor a few times before a major run took place. Heck even when I was right it took a lot of conviction to hold and finally realize that 5-10x return. Other times I’ve been a couple quarters too early. Other times I was so early that the underlying sector trend changed course, thus so did any potential for the stock I bought. Other times I was just plain wrong. The key has always been finding the right stock and pin pointing the “inflection quarter”. The inflection quarter is the first breakout quarter or event when the smart money starts piling into the stock. When the inflection quarter occurs, company growth intersects with a bullish macro trend and stock ascension begins.
Some under-discovered potential Multi-Baggers: EGAN, SPIN, VTNR, TPCS, INX.V, and others
For further discussion, if you are an experienced micro cap investor, feel free to apply to MicroCapClub [HERE].
About MicroCapClub: The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $500m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas.