Jeanna and Dr Bob (aka Darla and Spanky)
Happy New Year.
I stumbled on your new clubhouse for the microcap crowd because great minds evidently do run in the same channel.
I may not have much to contribute to this theme because I generally do not follow microcaps because β¦
so many economic dominoes need to tumble at the right angle, at the right time, to create enough inertia for microcaps fundamental to demonstrate "potential" price growth that attracts enough buyers to bid up their valuations and thus make it profitable to buy them. It is this domino effect that attracts investors and drives any potential for microcap growth.
I can provide some research that may prove helpful and can save time chasing rabbits down holes.
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First, I went to my usual #1 source, the AAII website. Here is what I found.
Search Results for "microcaps" All Securities Articles & Videos Screens Screens No results found. Articles & Videos No results found.
That surprised me, especially since I am familiar with at least one article on the AAII website (because I have read it) written by none other than the original AAII microcap champion - James Cloonan entitled "Winning With a Small-cap/Value Investment Approach." Why it is not "findable" is above my pay grade.
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A follow-up digging hit paydirt. This list may look more familiar.
4 SCREENS
O'Shaughnessy: Small Cap Growth & Value Screen O'Shaughnessy tries to predict the future using historical long-term trends.
O'Shaughnessy: All Cap Screen Growth-at-a-reasonable-price screen created by James O'Shaughnessy.
Foolish Small Cap 8 Screen The Motley Fool's Foolish 8 method for investing in small caps looks for profitable and rapidly growing companies with strong price momentum.
Foolish Small Cap 8 Revised Screen The Motley Fool's small-cap screen with recent revisions they've made to update the screen.
6 ARTICLES
AAII Stock Screens 2015 Review: Small-Cap Wins During a Large-Cap Year JOURNAL β Small Cap Value Investing, Feature, AAII Stock Ideas β Wayne A. Thorp β January 2016 Though the relatively flat year favored large-cap growth stocks, the Foolish Small Cap 8 came out on top. There was also a shake-up in the long-term performance rankings.
The Foolish Approach to Small-Cap Stock Investing JOURNAL β Small Cap Value Investing, AAII Stock Ideas β Wayne A. Thorp β November 2007 The Foolish Small Cap 8 screen attempts to isolate profitable, rapidly growing small-cap firms using an approach originally developed by the The Motley Fool Web site.
The Foolish Approach to Investing in Small-Cap Stocks JOURNAL β Small Cap Value Investing, AAII Stock Ideas β Wayne A. Thorp β November 2002 The Motley Fool's Foolish 8 method for investing in small caps looks for profitable and rapidly growing companies with strong price momentum.
Kirkpatrick Value Screen Investing model outlined in Charles Kirkpatrick's book, Beat the Market: Invest by Knowing What Stocks to Buy and What Stocks to Sell.
Small Caps & Value Lead at the Mid-Point of 2006 JOURNAL β Small Cap Value Investing, AAII Stock Ideas β Wayne A. Thorp β July 2006 A mid-year review of the screens tracked on AAII.com shows a reversal of last year's trend, with value strategies topping growth approaches, and small-cap screens outperforming mid- and large-cap strategies.
An Interview With Scott L. Scher, Portfolio Manager, CRM Small Cap Value Fund JOURNAL β Small Cap Value Investing, Feature β Maria Crawford Scott β January 2002 Feature: A value approach to investing that seeks small-cap firms undergoing positive changes.
NOTE: I still did not find a copy of the Cloonan article that I have on file. Help?
The Cloonan article looks like a great resource to help launch this blog.
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BARRY JOHNSON
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Original Message:
Sent: 12-14-2023 13:59
From: Jenna Brashear
Subject: Betting on the Little Guy: 2024's Small-Cap Crystal Ball Gazing
Hey Small and Micro-Cap Investors Community!
With 2024 on the horizon, it's time to set our sights on new investment opportunities. The small and micro-cap landscape is known for its potential for explosive growth, and as we approach the New Year, it's the perfect moment to discuss where we might find those hidden gems in emerging sectors and industries.
Discussion Question: Do you see any emerging sectors or industries that could present significant opportunities for small and micro-cap investors in the upcoming year?
Whether you're a seasoned investor or just dipping your toes into the world of small-cap stocks, your insights and ideas are incredibly valuable. Let's brainstorm and share our thoughts on:
- Which sectors or industries do you believe are poised for growth in 2024, and why?
- Have recent developments or trends piqued your interest in specific niches or markets?
- How do you go about researching and analyzing potential small-cap investments in emerging sectors?
- Are there any cautionary tales or success stories from your past investments that can shed light on this topic?
This discussion is your chance to collaborate, learn from one another, and uncover the promising opportunities that may lie ahead. Let's explore together and make 2024 a year of exciting growth for our small and micro-cap portfolios!
Remember to be respectful of diverse opinions, and let's keep the conversation lively and insightful. Your input could be the key to unlocking the next big small-cap investment.
Let the discussion begin! ππ
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Jenna Brashear
AAII Community Manager
Chicago, IL
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