The Microcap opportunity represents thousands of growth companies that are creating big discoveries, technologies and companies of tomorrow.
A Microcap Is A Publicly Traded US Company With A Market Capitalisation Between 50 And 300 Million US Dollars
Microcap Stocks Offer A Big Upside
Benefits Of Microcaps
Higher Potential Returns
Small Companies Outperform Big Companies Over Time
Lack Of Visibility = Higher Arbitrage
Nimble Companies And Boards
Mergers And Acquisitions Potential
Downsides Of Microcaps
Less Analyst Coverage = Less Due Diligence By Market
Less Trading Volume
Thorough Due Diligence Can Mitigate Microcap Downsides
The infographic below provides some helpful insights into the whole area of microcap companies, illustrating what a significant opportunity this sector of the market can offer.
As with every type of loan and investment opportunity you might wish to consider for your SIPP, maximising return and minimising risk is all about the level of due diligence you undertake. When it comes to analysing microcap stocks, you’ll find what you need to consider clearly set out in the following sections:
- The People
- The Capital Structure
- The Numbers
- The Differentiators and Catalysts
- The Valuation
The microcap infographic ends with a useful section on the Tricks of the Trade.
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