Advisers Find Value
in Microcaps Stock prices of small - cap companies appear stretched to some investors.
Most my investments these days are
in the microcap stocks so would love to see the results from the tiny stocks as well.
Finra will also scrutinize broker activity
in microcap stocks, including schemes targeting senior clients.
Not exact matches
Microcap stocks tend to price lower and trade lower
in volume.
I also think that
in the
microcap / small cap area, you can hold
stocks for long time if the business gets better and better, so if the upside remain high, even if u made good return already, you can still hold it for long time so I can't say I will not hold a company for long time no matter what.
Thus, I have decided to add a minimum requirement of 5k shares daily, which by no means guarantees a liquid market but will eliminate some
microcap stocks which have little to no trading, often times trading 0 shares
in a day (such as Continental Materials, CUO, from last month's list).
Bonds
in Malaysia, apartments
in Milan,
microcap stocks in Austin.
In my case, it's an OTC stock whose management used for a microcap scam, which resulted in a class action lawsuit, etc. but the company is still listed on OTC and I'm stuck with 1000s of share
In my case, it's an OTC
stock whose management used for a
microcap scam, which resulted
in a class action lawsuit, etc. but the company is still listed on OTC and I'm stuck with 1000s of share
in a class action lawsuit, etc. but the company is still listed on OTC and I'm stuck with 1000s of shares.
Full disclosure: no positions
in any companies mentioned here, and as they used to say at TheStreet, I am writing about a
microcap stock, so they would typically not allow articles on it without a big warning, if at all.
Jon Heller of the superb Cheap
Stocks, one of the inspirations for this site, has published the results of his two year net net index experiment
in Winding Down The Cheap
Stocks 21 Net Net Index; Outperforms Russell
Microcap by 1371 bps, S&P 500 by 2537 bps.
The three spinoffs are Covisint (COVS), a
microcap cloud storage company that was recently spun out of Compuware Corporation, Rayonier Advanced Materials (RYAM), spun out of Rayonier
in the middle of 2014, and a
stock I held earlier this year, Civeo Corp. (CVEO), spun out of Oil States International last June.
The same manager runs Perritt UltraMicro and
Microcap Opportunities, neither of which currently look swift when benchmarked against funds that invest
in vastly larger
stocks.
Even if the smallest of the
microcap stocks capture the greatest returns over time, I would like to think there are some somewhat larger, investable securities
in the lower P / TBV deciles...
«The only way to achieve these stellar returns [
microcaps] is to invest a few million dollars
in over 2000
stocks..»
As a professional investor often working
in the small /
microcap space, I can confirm that bid / ask spreads on these types of
stocks can be unusually wide, and irresponsible «traders» can move the share prices around wildly.
Pump and dump» (P&D) is a form of
microcap stock fraud that involves artificially inflating the price of an owned
stock through false and misleading positive statements,
in order to sell the cheaply purchased
stock at a higher price.