AEF - Is Company Sponsored Research the Future for Small-Cap Stock Investors?

Publicly traded companies are required to provide quarterly information to the public. This includes most categories of small-cap stocks and many micro-caps that are traded over-the-counter (OTC) trading on a regulated stock exchange. These SEC required reports provide a basis for investors to look back on company data. When financial data is compared to historical trends, weighed against industry growth and ratios, then subjected to “what-if” scenarios, the information becomes analysis. To qualify as research, the analysis is put under a spotlight along with evaluating the strength of management, intangible assets such as patents, market positioning, and a variety of other considerations.Awareness of the investment opportunities these companies represent is typically low. Companies with a low market capitalization can benefit from any quality research published on their companies, their products, and their economic prospects. This is because any publication which provides a heightened understanding of a company may create interest that leads to added liquidity and aid to the market’s price discovery of the stocks’ best valuation.Read More >>