Micro Cap Value
Hello, CAPS world.
Does anybody else invest in micro cap value stocks?? I tend to think that there are WAY more pricing inefficiencies to be found in the world of micro caps, and that the only way to buy a stock is for less than its purchase price. Put those together, and (duh) you get micro cap value.
My two favorite measures of cheapness are price-to-book and price-to-sales. In terms of evaluating companies, I look for cheapness, profitability, and health. While I understand that cheapness is most important, I try to look for adequate profitability and confidence that the company will not implode in the next year or two.
I don't know if it's very amateurish of me, but I am generally ONLY long in real life. I don't buy options, I don't short sell, or anything. I've seen that many of the top fools here have more complex money-making strategies than I do. I've done well enough with my boring strategy though, so I'll keep it going until I learn enough about other strategies to expand.
I'm very curious to see what everyone else's style is. Since this is my first blog post and I have essentially no following, I'm just hoping for a few responses.
If you happen to find this blog post 3 months late, feel free to respond anyway! I'd really love to hear the different trading/investing styles any of you have.