Who Are We And What Do We Stand For?
After taking our initial steps in the investment world a couple of decades ago, we quickly learned that an individual investor achieves the highest returns by investing in small cap stocks. However, we also soon learned that small caps are belittled by many in the investment community. The financial press doesn’t let any opportunity slip by to emphasize how treacherous this category of public companies is.
And we agree that the chance of going out of business is higher for a small company that’s working on a revolutionary product or service than for a mature, money making organization. But, when that small company’s product or service hits the market and becomes successful, its stock price usually doubles, triples or more. A performance you rarely see amongst large caps.
Tired of the media bashing small cap stocks, we made it our quest to set the record straight. We launched Smallcaps Investment Research (SIR) in 2003 because we wanted to prove that investing in well-researched small cap stocks yields the highest return.
Today, we’re proud that SIR is recognized as one of the most trusted online sources on U.S. and Canadian small cap stocks. We’ve earned that trust because we only highlight stable, ethical companies to our visitors and newsletter subscribers. We focus on fundamentally undervalued companies with a market cap below $100 million, and we have a special interest in stocks with a high potential, innovative product or service.
We’re also extremely pleased that a few years after launching our website, we could turn our hobby into an actual business. Now an Investor Communications company, we use SIR as a distribution channel to publish quarterly analyst research reports and informative updates on up-and-coming companies. Contrary to peers who have to pitch, or pay, third parties to publish an article about a company that they represent, we have our own well-respected distribution channel.
We aim to generate long-term results for eligible publicly-traded clients with accurate, complete and consistent communications. Our multi-faceted approach can significantly improve a company’s corporate visibility among a broad range of retail and institutional investors, leading to greater liquidity and higher stock values.
Finally, we must express our deepest gratitude towards three of the world’s foremost publishers of small cap investment newsletters (the late Max Bowser, editor of The Bowser Report; John Gay, editor of The Quiet Investor and Bill Mathews, editor of The Cheap Investor), who have cooperated with us to get Smallcaps started and who have helped us to attract thousands of visitors to our website virtually from day one. Thanks to their initial support, we’re now among the fastest growing US & Canadian small cap websites with thousands of unique visitors a month and distribution of our complimentary email newsletter to many more.
How Do We Select Companies?
We look at a company’s principle business – does it have growing sales and earnings? We verify its book value, current ratio, long term debt, number of shares outstanding and the stock’s 52-week range. 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 vital because they hold the key to success and can 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 switch focus to other companies.
That’s the basis for all our recommendations. Even if a company offers us money, we won’t feature it unless we’re convinced that the stock can significantly appreciate. We can only sustain our reputation as long as we recommend undervalued companies with high growth potential.
Another reason why we can’t afford to recommend just any company is our Track Record, which lists all our recommendations, and their performance, since launching SIR in 2003. So the ups and downs of each of our recommendations influence our Track Record’s overall gain.
How Do We Feature Companies?
If all our research and dialogue lines up, we introduce the company on SIR. We usually do this with an intro article that gives an overview of the company’s pros and cons. Alternatively, we introduce a company by way of an audio interview, which immediately makes investors familiar with the voice of a member of management.
From there, we continue to track the company’s performance and carefully listen to our visitors’ opinion about it. If the company continues to move in 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.
We don’t make up reasons why you should buy a stock. We state the evidence why a stock is undervalued – such as a P/E that’s half the industry’s average or growth numbers that are twice those of its nearest competitors.
Share Our Passion For Small Cap Stocks
We don’t claim to make you a billionaire overnight. We offer you honest, thorough, attractive reports on companies with real revenues, real earnings and real products.
You’ll only receive our newsletter ones a week, as we feel this is sufficient to keep you up-to-date on the vital few stocks that are worth your time and energy.
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