Post Reply
1-8 of 8
I vested ZIWO last week still holding it.......hopefully will cheong abit and I run with profit first!
15-Mar
CIMB-GK yesterday produced its inaugural issue of Small Cap Monitor, a 27-page report highlighting is small-cap picks. We reproduce parts of the report, including the two tables here.
Some of the risks in investing in small caps are :1) lack of liquidity, 2) lack of news coverage and broker coverage, 3) little price moving corporate developments, 4) potentially lower requirements for stock listing. Lack of healthy liquidity could expose the share price to wide bid/ask spreads.
The key attraction in small cap investing is the opportunity to get in on the ground floor of the next Microsoft. Small caps typically exhibit strong growth given their smaller profit base.
For example, in the US, Wal-Mart itself started as a small cap stock before becoming the world’s biggest retailer. However, given its current size, for Wal-Mart to double its sales/profit would be no mean feat.
Small caps are often under recognised as they typically garner little to no attention from the broking community. Due to the lack of media/broker attention, there is a good chance that small cap stocks are not efficiently priced, creating profit opportunities.
CIMB-GK yesterday produced its inaugural issue of Small Cap Monitor, a 27-page report highlighting is small-cap picks. We reproduce parts of the report, including the two tables here.
 |
Some of the risks in investing in small caps are :1) lack of liquidity, 2) lack of news coverage and broker coverage, 3) little price moving corporate developments, 4) potentially lower requirements for stock listing. Lack of healthy liquidity could expose the share price to wide bid/ask spreads.
 |
| Edwin Goh, CFO, China Animal Healthcare. |
The key attraction in small cap investing is the opportunity to get in on the ground floor of the next Microsoft. Small caps typically exhibit strong growth given their smaller profit base.
For example, in the US, Wal-Mart itself started as a small cap stock before becoming the world’s biggest retailer. However, given its current size, for Wal-Mart to double its sales/profit would be no mean feat.
Small caps are often under recognised as they typically garner little to no attention from the broking community. Due to the lack of media/broker attention, there is a good chance that small cap stocks are not efficiently priced, creating profit opportunities.
|