The Excessive History of Microcaps
An alternative lesson to draw from his study is that microcaps are fine but nanocaps are the ticket to wealth; you just have to be poor enough to buy them.
17 min read
An alternative lesson to draw from his study is that microcaps are fine but nanocaps are the ticket to wealth; you just have to be poor enough to buy them.
Benjamin Graham And The Power of Growth Stocks is the most important investment book I’ve ever read. Employing the principles outlined in the book, the author’s firm (Disciplined Growth Investors) has generated exceptional results for his clients. One offers this summary in the book’s foreword: When Frederick
In a spinoff, securities of some company shows up in your brokerage account. You didn't ask for it, you didn't buy it, and you may know very little about it.
How do you create a publicly traded microcap? IPO a small cap and lose a lot of money. Quite a number of microcaps came to be in just this manner. A recent personal acquisition of just such a historical money-loser inspired this article. Some math was required to evaluate what
A spin off consists of a distribution of shares of a subsidiary of an existing publicly traded corporation to the current shareholders resulting in two separate publicly traded securities. Larger spun off companies often result from breaking up conglomerates formed over the years to allow Wall Street to value the
In Part 1 of this series, I wrote about why investors should pay close attention to microcaps that choose to get smaller via dispositions. I then wrote Part 2: Broadway and Seymour, and Part 3: Clearfield Inc which showcased examples of value that was generated via dispositions. In this writeup,
In Part 1 of this series, I wrote about why investors should pay close attention to microcaps that choose to get smaller via dispositions. In Part 2, I described a Case Study of Broadway & Seymour’s sale of their money-losing customer relationship management software business. This uncovered the profitable
Originally published in 1997, “You Can Be A Stock Market Genius” remains popular today and is enthusiastically endorsed in a number of reviews on the internet. The author, Joel Greenblatt, ran hedge fund Gotham Capital racking up a 50% average annual return over a 10 year period spanning the mid
In Part 1 of this series, I wrote about why investors should pay close attention to microcaps that choose to get smaller via dispositions. In this follow on article I will take you through a real world example of a company successfully choosing to get smaller and how investors (me
How do institutional investors buy a micro-cap? They buy a smallcap and wait for its stock price to go down. Unfortunately, that is largely the truth. With increasing regulatory costs, fewer and fewer microcaps are coming to market via initial public offerings. Many microcaps come into existence by starting as