What Makes You Angry About MicroCaps?

Ian Cassel Blog, Question & Answer 0 Comments

I asked our membership of experienced microcap investors to list the things that really irks them about microcap companies. To say the least it was a spirited discussion, but here is the list that we came up with:

In no particular order:

  • Over Promising and Under Delivering CEO’s
  • Overly Promotional CEO’s
  • CEO’s running a stock price instead of running a business
  • High Executive Compensation:  >$250k/year
  • Management teams that own so little stock that they care more about their salaries than the stock price
  • Bad share structures
  • Companies-CEO’s that don’t call me back
  • When I know more about the company then the paid IR person
  • Companies doing reverse splits to keep a NASDAQ-NYSE listing
  • Preferred Share classes screwing up the cap table
  • Companies waiting until they are out of money to raise money
  • CEO’s that think they know it all with stock prices at all time lows
  • Business models whose sole purpose to sue other companies
  • Companies that can’t file on time
  • Companies that don’t issue quarterly earnings releases
  • Companies that go to investor conferences but don’t do earnings conference calls
  • Self described “Visionary” CEOs that never ran a profitable company
  • CEO’s that contact me only when they need something
  • Companies that only communicate when things are great
  • Getting harder and harder to deposit a microcap certificate
  • Brokers not being able to buy microcaps for clients anymore
  • The same corporate governance rules and regulations are the same for a $10m market cap as a $100b market cap
  • Non SEC Filing Public Companies
  • MicroCap service providers (investment banks, investor relations, etc) whose managers don’t even invest in microcaps
  • Companies that Issue Press Releases stating they don’t comment on “Unusual Stock Activity”
  • Companies that issue Press Releases in response to Shorts
  • Companies that do business exclusively outside the US
  • Companies with too many business lines, particularly those that don’t offer symbiotic value
  • CEO’s that are attorneys or scientists by trade
  • CEOs and management teams that never buy stock because they’re always blacked out for some reason or another

The MicroCapClub (mc2) is an exclusive forum for experienced microcap investors focused on microcap companies (sub $300m market cap). The MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. Our goal at MicroCapClub.com is quality membership, quality stocks, and quality content.  If you are an experienced microcap investor, feel free to Apply today.



About the MicroCap Expert Author

Ian Cassel

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Ian is a full-time microcap investor and founder of MicroCapClub, the MicroCap Leadership Summit, and co-founder of the Intelligent Fanatics Project. Ian started investing as a teenager and learned from losing his money over and over again. Today he is a full-time private investor that supports himself and his family by investing in microcaps. Microcap companies are the smallest public companies that exist, representing 48% of all public companies in North America. Berkshire Hathaway, Wal-Mart, Amgen, Netflix, and many others started as small microcap companies. Ian’s belief is the key to outsized returns is finding great companies early because all great companies started as small companies.

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