What should I look for in a small cap stock company?

Question

What should I look for in a small cap stock company?

Answer 1

About 70% of all investors lose money in the stock market, so it's important to choose a company that is transparent with its investors, is fundamentally solid, with increasing sales and earnings and you won't be part of that statistic. The best bet is to jump in when the stock is selling near its 52-week low price. Doing your research and buying at the right price are vital! And don't count out a stock just because it's in a less attractive market – choose the company for the company itself, not by its overall market. There are many resourceful Web sites, such as BeaconEquity.com that expose long-standing and emerging companies in the micro-cap space to give you solid investment ideas.