Think about becoming a member. Remember this is the land of pump and dumps, shady promoters, and desperate managements but also extremely cheap stocks. Beginners need not apply, but if you can read a balance sheet, stick with well-funded companies, see that management is aligned with shareholders, you diversify, and give yourself wide margins of safety, then you can really make a name for yourself—the competition is minimal. Begin with a small portion of your capital. Perhaps spend a year researching and talking to other micro-cap investors through this club to gain an education without “paying too much.”
I just want readers to be aware of all the different ways to find opportunity. This is an entrepreneurial area of investing. An experienced investor may even be able to advise the companies and be a catalyst for value. But if you have never learned about micro-cap investing spend a lot of time studying the companies and managements.
Here is an example of the Micro-cap Club founder’s research on a micro-cap pizza company
…..Any way this might be an area of exploration, just be skeptical and do your own work thoroughly. A big plus, is that you can pick up the phone and speak to managements about how they will allocate capital. To understand how to research micro-cap companies read this post on sleuth investing and scuttlebutt research: http://wp.me/p2OaYY-lV.
Tell us about your adventures in the micro-cap world.