Dear Retail does not and will not publish negative information about the profiled company. The content in this publication is a snapshot that provides only positive information on the profiled company. The purchase and sale by Dear Retail of securities in this profiled company may cause: (a) a decline in the price of the profiled companyвЂ™s stock due to such selling activities, (b) increased volatility due to such buying and selling of the profiled companyвЂ™s stock and (c) permit Dear Retail to make substantial profits while it is profiling this company, yet may result in a diminished value or loss for readers of this publication who invest in this profiled company. or its affiliates (вЂњDear RetailвЂќ) may hold, as well as purchase and sell, the securities of this profiled company before, during and after the time that Dear Retail publishes favorable information about the profiled company. **IMPORTANT! BY READING THE CONTENT IN THIS PUBLICATION YOU EXPLICITLY AGREE TO THE FOLLOWING. more paperwork and more hassle when you want to sell. In the US, owning more than 5% of a company designates you a material shareholder: this means filing a 13-D with the SEC, i.e.

The relative illiquidity of micro-caps also makes it difficult for institutional investors to secure a large enough position to be worth their time and effort.ДЇurthermore, for these institutional investors, taking a meaningful position in a micro-cap company (even a relatively small position of a few million dollars) often means controlling stake or buying the whole company outright.

They also tend to ignore micro-caps because they have too much money on their hands to bother making such small bets.Д¬ompared to large-caps, micro-cap companies are relatively illiquid, typically trading in the range of thousands of shares per day in comparison to large-capsвЂ™ millions of shares per day, and big institutional investors arenвЂ™t interested in tying up large pools of their capital in illiquid companies they canвЂ™t easily exit from. These large institutional investors are discouraged from investing in high risk micro-cap stocks due to certain legal and fiduciary obligations to their clients and backers. All that extra help costs money, which their clients pay in investment fees. They employ teams of researchers and analysts to help them make decisions on buying and selling. Not only that, these institutional investors also have access to valuable information that the typical retail investor doesnвЂ™t. When youвЂ™re investing in stocks, not only will you be trying to make better bets than other retail investors like yourself, youвЂ™ll also be up against big league institutional investors with way more capital вЂ“ weвЂ™re talking millions if not billions of dollars вЂ“ to play with. Why do micro-caps get the shaft from the major players, and why does this matter?ДЄ key component of a successful investment strategy is beating вЂњ the market,вЂќ and the market is your competition вЂ“ the other investors who are playing in the same sandbox as you. They are also overlooked by the large-scale institutional investors, hedge funds, sell-side analysts, and high frequency traders.

Despite their huge upside potential, micro-caps are for the most part ignored by the mainstream financial media. The same $1,000 invested in large-caps would have given you returns of just $4 million.ДЄs previously mentioned, youвЂ™re not likely to see an article about a micro-cap company on the front page of the Wall Street Journal. This makes a material difference when compounded annually.ДЄccording to their analysis, if you had invested $1,000 in micro-caps in 1926, that capital would have grown to $26 million by December 2018. Micro-caps on average beat large-cap stocks by an annual spread of 220 basis points. In fact, they are one of the best-performing asset classes out there.ДЄn analysis of historical returns conducted by investment firm DGHM LLC for both large cap and small cap stocks dating from July 1926 to December 2018, found that micro-cap stocks annualized 11.6% total returns over this period, versus large-capsвЂ™ 9.4% returns. I f your goal is to make significant money in the stock market, micro-caps are where you want to be.Дespite micro-caps being a volatile asset class, they have historically produced greater returns than medium or large-caps. This is why some of the most prolific investors of all time such as Warren Buffett, Peter Lynch, and Joel Greenblatt started their investment careers buying and selling micro-caps.

Everyone knows the goal of investing in stocks is вЂњ buy low, sell high.вЂќNowhere is that more possible than in the micro-cap space.

Micro cap stocks 2018