Many elements go into a micro cap multi bagger. When the right management + right product/service + right share structure work in harmony a stock price can do some incredible things. Maybe the hardest part is “timing”. The risk for me has always been being “too early”. I’ve found being too early is fine as long as you are just early and not just plain wrong 😉 I remember ZAGG in Sept 2008 at $0.65 PPS trading 5k shares day. No one cared. In the summer of 2008 they announced a deal to distribute the invisible shield in Best Buy (BBY) and no one still cared. They announced Q3 2008 results of 5c EPS (up from 1c the quarter before) and investors started to care. The point is investors had time to buy ZAGG if they were paying attention and you had to be willing to buy it early. Here at MicroCapClub we try to find and discuss the best micro cap stocks while remaining cognizant of timing.
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Thanks for sharing Ian! Yes, buying too early has seemed to work against me over the years just because I didn’t have the patience to wait for the results and investors to notice the investment. I’ve learned that lesson very well and know I focus on finding companies that are the next ZAGG and flying under the radar with stellar products that the consumers are all about. I have learned to build a position and continue to research the company while keeping in touch with management has led me to some real winners. It’s all about being patient and doing the DD before 95% of the other investors find the gem.
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Sean: Yes its actually quite a thin line between being too early and being wrong. I find you have to at least be a couple quarters ahead of the inflection point.
Just done some due diligence on VRSEF.PK Great Find! Really impressed with this sort of potential.