Not exact matches
Part of what may be contributing to this trend is the fact that public offerings in Europe are, on average,
smaller than they are in the U.S. Consider that 18 of the
companies to go public in the region this year have a market
cap of less than $ 100 million, the Atomico research
found.
THE Perth -
founded telecommunications
company Westel was the golden child of
small -
cap stocks on the All Ordinaries Index this month.
Canadian
small -
cap seekers are bracing for a few bad months ahead, while income investors are having to look farther afield to
find companies that pay well and aren't overpriced.
I learned a little about the Fama / French
finding — that
small -
cap companies and «value - oriented»
companies have historically offered higher returns than the overall stock market.
In fact, if you look at the rally in the US stock market since the election, you will
find that
smaller cap stocks (Russell 2000) have outperformed larger S&P 500
companies.
I try to
find the best value stocks, mostly by looking for beaten up
small caps that are cheaper than large
caps, and
companies with very little debt.
A study of 888 campaigns mounted by activist hedge funds between 2001 and 2005
finds that the typical target
companies are
small to mid
cap companies, have above average market liquidity, trade at low price to book value ratios, are profitable with solid cash flows and pay their CEOs more than other
companies in their peer group.
«Individuals are thus better off
finding value in the analyst - ignored
small cap universe where stock prices are the most inefficient and where
companies trading at large discounts can be
found.»
How to
find small -
cap, mid-
cap and large -
cap companies?
Research from Fama and French
find that there has been a historical difference in performance from
small companies compared to large ones, typically referred to as the «
small cap premium».
Advisers
Find Value in Microcaps Stock prices of
small -
cap companies appear stretched to some investors.
Looking back further than just the last 12 months, one
finds that
small -
cap companies have severely lagged larger
company indices for most periods.
Small cap stocks offer a great way for
smaller investors to take advantage of the market and
find ways around the billion - dollar competition that larger
companies draw.