Search for the tiny, obscure, and neglected
The above links will show you the methods of a micro-cap investor. You typically won’t find many franchise-type companies in the sub-$300 million market cap area, but you might find a few strong niche companies like MLR (Miller Industries, Inc. – Tow Trucks). Financials are usually easier to follow. You need to be aware of the stock price volatility especially in bear markets (remember those?) to use Mr. Market to your advantage. One of the best investments is to know the value of a company and take advantage of repeated volatility.
Update: Case Study in a Value Death Trap (PRXI).
Mark Sellers discusses the keys to investing (Interview)
Mark Sellers Capital
Value Traps_PRXI Premier Exhibits
Sellers Piling into MCF (Contango Oil & Gas)
What can you learn from his saga?
To Get Big Think Small
I am having difficulty finding value, so now I gotta go small. More on micro-cap investing…..Liquidity as an Investing Style and Microcap_Investing and then More_on_Microcap_Investing. If you can accurately value a business while the company’s stock price is volatile, then you have a gold mine. Smaller companies tend to be more OVER and UNDER-VALUED than larger, well-known names.
Secrets and Lies of the Bailout
The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come
So what exactly did the bailout accomplish? It built a banking system that discriminates against community banks, makes Too Big to Fail banks even Too Bigger to Failier, increases risk, discourages sound business lending and punishes savings by making it even easier and more profitable to chase high-yield investments than to compete for small depositors. The bailout has also made lying on behalf of our biggest and most corrupt banks the official policy of the United States government. And if any one of those banks fails, it will cause another financial crisis, meaning we’re essentially wedded to that policy for the rest of eternity – or at least until the markets call our bluff, which could happen any minute now.
An excellent article that shows what has happened to our centrally-controlled, socialist, Ponzi financial system. Of course, the author does not point out the causes or remedies, but he does show the results of the bailout.
My favorite line:
We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.
View these films: http://thebubblefilm.com/cast/jim-rogers/
Conventional Wisdom on Booms and Busts from a Value Guru
Ask yourself what have you learned from reading this article. What can you apply from his thoughts? Read here: Ditto.
PS:I didn’t learn much. 50 seconds to the trash bin.
HAVE A GREAT WEEKEND.