The Motley Fool Discussion Boards
Investing/Strategies / Small Cap Investing
|Subject: Suggestions for this board||Date: 8/24/2003 2:19 AM|
|Author: obenation||Number: 9 of 66|
I'm interested in helping make this board a success. There are lots of reasons to believe that it is possible to make some big money on small caps, and I'd like to help discover some nice companies.
However, I think for this board to be different from a Yahoo board which is full of empty speculation and rumors, I want to suggest some guidelines when suggesting stocks.
1. Say why you are interested in the company and what it does.
2. Don't just try to 'sell' it to other people, say what the realities of the situation are, both good and bad.
3. Include some sort of quantative analysis. If the company is burning $3m/yr and only has $1m left in cash, say so!
It may take some time to draw an accurate picture of the company - this is a good thing. The more research you do, the better. I subscribe to a small cap newsletter which extolled the virtues of some internet company (warning sign #1) and went into all kinds of detail about the different businesses it owned and how it was poised to take off. Yeah. Spend two minutes looking at the 10-K and you realize this company is a stone's throw from bankruptcy. Don't buy based on hype. Find out about the company and its management and then make a recommendation.
Hope this helps!
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