Simply put, the small cap market is huge. Nearly 8 out of 10
companies that publicly trade in the United States have a market capitalization
of less than $500 million. A surprising 40% of the businesses that trade on
Nasdaq have a market capitalization of less than $250 million.
Yet these companies get very little if any analyst research
coverage on Wall Street. You may have 52 analysts covering a $468 billion
company like Apple, but practically no one covering the small cap company. The
investment news media consisting of broadcasts media like CNBC or the magazines
and financial newspapers also rarely mention small caps. As a result, the small
cap’s stock price rarely reflects the company’s future prospects.
Yet small companies are the true leaders of innovation and
creativity. Large companies are bureaucratic monstrosities. Think of the film
Office Space where computer engineers stuck in cubicles feel their creativity
is stifled while they are focused on pleasing middle management writing Testing
Procedure Specification (TPS) reports. Large corporations have become
totalitarian work environments where the CEOs are acting as dictators looking
over Stalinesque bureaucracies and even their brightest staff members feel as
if they are merely renting themselves to the company for a living. The large
organizational hierarchies of big cap companies are slow in making decisions
and require sticking to established stagnant procedures. Startups require
innovative entrepreneurs, and that typically isn’t in a job description for a
large company. An innovative entrepreneur would most likely be deemed a threat
by corporate middle management.
Small cap companies are hampered by little if any
bureaucracy and this leads to rapid decision making, fast adaptability to quick
changing markets, and a willingness to take on the risk of new ideas. Large
companies sometimes throw large amounts of money to innovate and get nowhere
due to ineffective internal communication within their own departments. Clear
communication among internal staff and a lack of funds triggers small companies
to come up with different, unique, solutions to solve the problems that lead to
innovations.
Small cap entrepreneurs are the visionary business people
that do market research, create business plans, seek out investors and
financing, and then strive to create products and services that utilize a
country’s resources. They are the true job creators, and not the management of
large corporations that seek to enhance profits by off-shoring labor or
replacing people with automation. They are the value waiting to be unlocked in
the small cap market.
Let QualityStocks become your portal to small cap investment
success
QualityStocks can be your first step to researching small
companies on the leading edge of entrepreneurial innovation.
For over 8 years, QualityStocks free daily newsletter has
been providing quality investment ideas to small cap investors. QualityStocks
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of the small cap market. Once you begin subscribing to the QualityStocks daily
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About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
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