I plan on discussing small and micro cap stock ideas on this site.  Feel free to share your own ideas with me as well!  While I look at many different kinds of companies, my favorites are small, fast growing companies, preferably with recurring revenue streams.  The cleaner the balance sheet the better, however a debt free company is not a requirement.  I care about competitive advantage more than valuation, however sometimes I’ll gladly buy a company without a competitive advantage as long as it trades at a discount to net asset value (preferably cash).

I’m not a trader and don’t invest on technicals or momentum.  My time horizon is usually 3-5 years, however I will take profits it stocks become over valued and will gladly sell at a loss if the situation changes or my initial reasoning turns out to be flawed.  I generally want to make at least twice my initial investment using conservative assumptions to as much as 5x using more aggressive assumptions, with little downside risk.  These are high standards, however I am willing to wait to find the right opportunities.   I estimate future upside values using “conservative multiples on optimistic assumptions” as one fund manager once told me.  I estimate the downside risk by looking at net asset values, cash, or what the company would be worth in a take under by management.

I can be reached at info@smallcapvalues.com.