Investment Research & Commentary
SmallCapInvestor is a newsletter for sophisticated investors with a focus on high-growth, small cap stocks.
The website contains investment-grade research & up-to-date market analysis and commentary on some of the most lucrative investment opportunities on the street.
We DO NOT make buy or sell recommendations. We highlight overlooked investment opportunities and let readers decide for themselves.
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Trust the Process
The first step in my due diligence process starts with a thorough analysis of quality of the asset or business model in question. For example, when analyzing a natural resources company, I need to know everything about the asset such as the geology, resource size, grade, jurisdiction, permitting status, valuation, etc., There are so many different factors that ultimately go into determining the success or failure of a company and I make sure to know them all.
Possibly the aspect in which I apply the most weight to. It doesn’t matter if you have the best asset on the street, if you have a management team who is not capable of executing and delivering on their strategy, the company may never reach the ‘exit’ stage. We believe that management teams who have had success in the past, have a higher likelihood of repeating success in the future, than a management team who has not done it before.
There are many great stocks with a great story but differentiating between the great story without a proper share structure and the great story with a healthy share structure can be the difference between investment success and investment failure. This means being aware of any potentially dilutive securities as well knowing how the deal originated.