I'm Matt but my nickname is insomi, and I will use it to write on SeekingAlpha about my investing journey in the microcap space.
For sure your first quesion would be: what are the "microcap stocks"?
The answer is simple: a small public company with a market cap of less than $300milion.
So how you can see, it is just a label, that gives you almost zero information about the company that you are looking for.
For example if during the deep research, needed, to find a great company to invest in at a good price, we were finding it but it was a microcap stock, how this label can influence our judge about it.
In fact the term "MicroCap" has a negative perception, many times in the newspapers articles there are experts that talks about penny stocks in a such bad way that look like all the small companies on that exchnage are not worth to look in it and maybe even invest in it for the long term.
Actually invest in MicroCap is a great thing for an individual investor, he can really take advantage of a substantial less competition in the microcap space, because the institutions cannot buy or they are not interested in these small businesses.
In the MicroCap space you can find this kind of companies:
Underfollowed and Easy Misunderstood (so undervalued)
with High Growth Revenues and Net Income
Easy access to Management and feeling more engaged with the admnistration of the company
Easier to understand financial statements and business model than mid and big cap companies
For these and other reasons I am focusing only on us and canadian microcap for my investing journey.
Let's meet next week for another post, I will write a post about my portoflio and why I bought the companies that are in it.