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)
Sellers Piling into MCF (Contango Oil & Gas)
What can you learn from his saga?