Tuesday, June 2, 2009

Small Cap Rap

Our regular readers have undoubtedly noticed that we have a tendency to discuss small cap stocks quite a bit on this site. Why? Because among the small cap universe some of the most inefficiently priced stocks can be found. They carry little in the way of name recognition for retail investors, and they don't move the dial enough for institutional investors. As such, for those who can read/interpret/understand financial statements, small cap stocks offer up some great opportunities.

But while we've discussed stock investment research sources for individual investors, most of these sources are focused on large caps, as that's where the traffic's at. One site, however, is devoted entirely to small caps: Agoracom is a site dedicated to providing information and promoting discussion of small cap stocks.

There is one caveat, however. Its business model derives revenue not from advertising, but from the small cap companies themselves. Many small caps struggle to get their names out there to investors, and so they are willing to pay Agoracom to discuss their companies. As such, it is unlikely you will find much in the way of negative information. Nevertheless, investors looking for info on small caps can find discussion forums, filings, quick facts and other useful information that could eventually lead to an investment decision. 

If you use or have other useful sources for small cap investing, please feel free to share them in the comments section below.


optionsnut said...

besides yourself i look at a few small cap portfolios.

Steadyhand and Sarbit are 2 i watch each quarterly update.

I like contra the herd, the rothery report (ndir), and Irwin michael at ABC funds. Of course peeking over Chou and Watsa's shoulders isn't always bad either.

Klarman is another to get idea's from. I am sure you know of all these, but just in case....


optionsnut said...


This guy also has interesting idea's even if a few are oversea's and rather hard to actually buy.