Microcap companies make up half of all publicly traded companies on all the US exchanges, including the OTC Markets and OTCBB. Microcaps have always been under appreciated by a bulk of investors and especially the financial press. Even most professional investors I talk to don’t realize the size and scope of the microcap space or the value that can be found in it. Here are a few statistics that help illustrate this:
There are currently 18,712 publicly traded companies on all US Exchanges (including OTCM/OTCBB)
- 45% (8,464) are profitable LTM
- 49.7% (9,315) are microcaps (sub $300m market cap)
- 24% of all microcaps are profitable
- 38% (7,120) are nanocaps (sub $75m market cap)
- 16% of all nanocaps are profitable
Not surprisingly, a greater proportion of microcaps are not profitable when compared to other market capitalizations…
Another way to look at it…
But you will certainly find more value in microcaps than anywhere else, of the 8,464 profitable companies…
One of the key things professional microcap investors look for are companies with good share structures…of the 2,211 profitable microcaps that exist a majority of them have less than 25m shares outstanding..
Source: Statistics from S&P Capital IQ
The fact that no one really looks at these small public companies is also the opportunity. At MicroCapClub, most of our members make a living exclusively investing in microcap stocks. If you want to find out how we do what we do, check out some of our educational articles [HERE].
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