Frustratingly for investors in micro-caps, the larger companies which now include the WAAAX market darlings are running quickly ahead of their smaller cousins. It’s a waiting game for the tide to turn.
Author Archive | Robert Miller
Check the cash flow characteristics and sustainability in any company before investing, as various ratios can be an early sign that the business is churning through rather than generating cash.
Watching the commitment to buying shares by senior executives and board members can be a powerful pointer to company prospects, but investors need to read the right signs.
Earnings downgrades are not always bad news. They may present buy-side opportunities if the stock is oversold. It’s best to assess the circumstances via a checklist without panicking.
A company site visit can reveal far more than an annual report or a presentation in an office, and it’s the hidden insights that are easy to miss that are the most valuable clues.
Value investing is not just about a low P/E or EV/EBITDA. Other metrics need to be considered to prevent falling into a value trap, as well as what challenges are facing the industry and the time frame allowed for success.
Watch the many different forms of corporate activity for clues to the way management is thinking about a company’s future and the ways to finance its growth. This can be especially useful for investing in small cap stocks.
Growth stocks can quickly turn from market darlings to market devils, and last year’s big winners often fail to perform in the following year. Here are four lessons to help avoid mistakes in the high-flyers.