About

Smallcaps.us highlights solid and honest companies with a market cap below $100 million. We focus on fundamentally undervalued Companies with real revenues and earnings and we have a special interest in stocks with a high potential, innovative product or service.

We launched Smallcaps.us in October 2003 and thanks to our cooperation with three of the world’s most recognized publishers of small cap investment newsletters (Max Bowser, editor of The Bowser Report; John Gay, editor of The Quiet Investor and Bill Mathews, editor of The Cheap Investor), our website attracted many visitors from early on. Since then, the number of American and European visitors to our website continues to grow.

Stock Selection

Small cap stocks are belittled by many in the financial community. However, if the same research techniques employed to identify successful higher priced issues, are used to isolate good penny stocks, you can have strong returns.

When we research a company, we first look at its principle business, does it have growing sales and earnings? We verify its book value, current ratio, long term debt, number of shares outstanding and highest share price during the past year. If we still like what we see, we contact the company’s management.

That’s another reason why we like small caps: in many cases the management team is accessible. This is really important because those are the people that hold the key to success. They have to steer the company in the right direction. If we’re not able to speak with a key executive or if we don’t like what we hear, we move on to the next stock.

Featured Companies

When we like a company’s fundamentals and its management, we introduce the company on Smallcaps.us. We usually do this with an audio interview. An interview immediately gives you a general overview of the company’s positive and negative points and it makes you familiar with the voice of a management member.

At that moment we continue to track the company’s performance and we carefully listen to your opinion about it. Both positive and negative feedback from you is greatly appreciated.

If the company continues to move into the right direction and we believe it’s going to excel, we increase our coverage with quarterly research reports and by discussing the company’s press releases.

Paying Companies

On occasion, we’re engaged as a consultant to develop and execute a communication plan which enhances a company’s exposure to the investor community. Whenever we publish something about such a partner company, we clearly state it at the bottom and we provide a link to our disclaimer.

However, we refuse to be a consultant for companies that we don’t believe in because we would only be fooling ourselves. Let me explain.

The days where it took forever for news to spread from one city to another are long gone. Nowadays you only have to Google someone’s name or company and all the good… and bad is one click away. All that information is on the net permanently and it doesn’t go away if you lay low for a few months.

Now think about it, if you run a background check on Smallcaps.us, and you find out that we’ve only been recommending junk companies in the past that are currently trading at a penny a share. What are you going to do? That’s right, you hit the back button and you never return.

The same goes for companies that are interested in doing business with us. When they find out about our crappy recommendations in the past, we’ll never receive a call from them.

Bottom line, we only have one reputation, and if it’s corrupted, it remains corrupted indefinitely. That’s why we only offer our consulting services to good, solid, trustworthy companies in which we’re shareholders ourselves.