Are You Prepared To Research Smaller Companies?

Discussion in 'General Trading Discussion' started by longtermbull, Jul 14, 2019.

  1. longtermbull

    longtermbull Administrator Staff Member

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    There is no doubt that there are some hidden gems in the smaller company arena but many of these can take time to research and find. Are you prepared to research smaller companies to find that hidden gem for tomorrow?
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    Small companies quite often offer outstanding investment opportunities since they have great potential, especially if to speak about companies from the spheres of technology or biotechnology. They have affordable price so it is possible to create sufficiently large position even if your investment capital i relatively small.
    At the same time, it is necessary to avoid buying companies just because they are very cheap since it could be their fair price. Try to find underestimated companies having something that could help them to increase their profits substantially in the nearest future. So, it is important to perform in-depth analysis to find stength and weakness of the company each time to make sure it could generate profit in long term perpective.
    Another important criteria is shares float - the number of share available. In fact, sh. float is a supply, so if the company would become interesting for investors, it would move faster because buyers would move the price trying to acquire enough shares.
     

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