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Oscar Wilde once wrote that a cynic is he who knows the price of everything and the value of nothing. In stock investment, a naive investor knows the price of all stocks and the value of none. In Microequities' view, within valuation lies the most important of many of the investment parameters we seek to understand when recommending a stock. Valuation is at the cornerstone of the investment decision, because in a undervalued company exists a superior profit making investment opportunity.
Value is not the sole criteria. we also look for credible and strong business models, competitive advantages, financial solidity and market positioning as other important parameters as well as honest and competent management in those businesses.
Microequities believe that within the investment universe of Microcap stocks lies a greater number of undervalued companies.
Why? Due to a lack of professional investment coverage many of these companies suffer from a market in which the price of the stock does not reflect all publicly accessible information on the company. The market for Microcap stocks often tends to be an inefficient one, that is, a market in which the price of the stock does not reflect all publicly accessible information on the company.
The upside is that an inefficient market for a stock can create outstanding investment opportunities, particularly if the market pricing of the stock is undervalued. Our goal is to identify those stocks, value them, analyse them, and inform our clients with a view to attempting to provide superior investment returns. |