small_cap

small cap analysis

Goal

• Make money by taking concentrated positions in small cap stocks.

Steps

• Start Small
  • analyze list of all microcap companies
  • Pull tickers
  • pull financials
  • classify into investable / not investable
    • bio tech is not investable - i don't understand
    • shell companies w/ no ops are not investable
    • debt is investable --- need catalyst of reworking the debt
    • unprofitable is investable --- lots of private market experience
    • Needs to be a company selling a product
  • Investible list review and read all summaries
    • you make money investing before a catalyst
      • new management team
      • new product
      • debt refi
      • industry changes
      • MACRO IS NOT A CATALYST
        • Its like the second coming - not even Jerome Knows
    • you make money investing in quality management teams
    • Clear communicators
    • history of effective allocation
    • passion and knowledge for the industry
    • "i don't know what"