For the last couple of weeks I’ve been talking about microcaps – the smallest companies on the stock market.
The basic idea is that they’re like small caps, but more so. They’re smaller, they go up more quickly, they fall more quickly. They return even more on average.
I also explained why: they’re too small for the big money to invest in. The guys who manage billions of pounds can’t put money into a microcap that might be only worth £10m. Microcaps are too small for the mainstream investment industry to touch.
Their size makes them weird in other ways, too. You might be wondering why you haven’t read much about microcaps on bloomberg.com, or the business pages of your favourite newspaper. If they’re so lucrative, why aren’t more people talking about them? Why aren’t they all over the papers?
Tiny stories don’t get published
It comes back to the size thing. Editors and reporters have no interest in publishing stories about tiny companies, because they’re too small for the readers to care about. Individual tiny companies just aren’t newsworthy. Readers of the FT or Telegraph are more interested in Apple than some random, fast-growing company from Cambridgeshire.
So, if you want to find the most exciting microcap stories, you have to make the effort. The stories aren’t going to come to you. You need inside help.
That’s why we’ve launched a new service specifically to publish those stories, and help you make money from them. We call it Microcap Millionaires.
The idea of Microcap Millionaires is to bring readers exciting microcap stories that aren’t getting covered elsewhere. We’re going to find the most exciting microcaps, research them in-depth, present the information in a clear jargon-free way, and show readers how to profit.
I’ve spent six months trying to find the right person to head this up. It’s been tricky. The problem is that there are lots of investment experts out there, but very few microcap experts. Most of the people I spoke with spent their careers investing in mainstream assets like blue chip stocks, bonds and commodities.
After a lot of work though, I’m delighted to say we’ve found the right man for the job. He’s devoted much of his career to microcaps and he has an excellent track record. He’s a real true believer in what microcaps can do.
His name is Mark Cartlich. Mark knows how this market works inside out. He can recognise the pitfalls. He knows what sectors are hot. He knows what signs to look for. And he knows when to sell and when to let your winners run.
Tiny companies mightn’t matter to the FT, but if you’re an investor they should matter to you. Mark’s going to find the smallest stories out there. You won’t read them anywhere else, that much I can guarantee.