Stock Market Picks - Micro-caps

I’ve been tracking a small number of publicly traded companies, some of which I’ve invested in, and some of which I’m merely tracking. I look at ones mostly in the $1 to $3 range, and primarily at small companies, under $50 million (stock price multipled by number of outstanding stocks). These are what you call “micro-cap stocks.”

I track factors like their outstanding debt, revenue figures, and where the stock has traded in the past. I also look at intangibles, such as the viability of the product or service, the history of the management team, and the overall condition of the industry and the company’s position in it.

I do get bombarded with spam emails suggesting that I should purchase whatever “hot stock” the spammer wants to promote. I urge people to not fall victim of scams like this. Generally, what happens is the spammer is the major stock holder, or has somehow gained the position of being the only (or primary) market maker in the stock. They’ll sell you the stock at an inflated price, and when you want to sell there are no buyers. You’d do better picking stocks using the Wall Street Journal’s monkey method.