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Title: Here's how I pick Canadian small caps... Post by: Tara on August 11, 2008, 01:15:59 PM ...forgot to introduce myself, forgive me.
I'm a fellow Canadian hunting for undervalued small cap and micro cap stocks. My method is simple and comprehensive to most individuals with a minimum of acounting background. I use COMMON metrics, dissect financial statements and monitor insider trading. I try to minimize predictions and hope as much as I can. I look at the current facts and try to find discounts unexplainable, or usually related to the company not having enough exposure. If I can't explain it or understand it logically, I usually close my eyes. My investment criterias usually revolve around the following 1- positive working cap 2- positive free cash flow 3- positive net earnings 4- recurring sales whenever possible 5- small float owned in majority by insiders 6- insider trading at buying level or higher 7- no lawsuits or none which can have material negative effect 8- trading below or very close to book value (when book value is applicable 9- trading under 10x times net earnings 10- growth prospect whenever possible 11- knowledgeable management in their field with reasonable salary structure 12- limited or reasonable goodwill/intangibles 13- liquidity is prefered but sometimes a sacrifice when bottom fishing 14- very little long term debt or very reasonable debt/equity ratio 15- a situation hovering around the breakeven or inflection point where revenues are just beginning to overcome the cost structure Glad to have discovered this site, and hope you find lucrative investments. Title: Re: Here's how I pick Canadian small caps... Post by: Victor on August 13, 2008, 11:20:55 PM Hi Tara,
Do you use software or an internet filter to shorten the list of prospects for further research? Just wondering how you start the process. Thanks, Victor Title: Re: Here's how I pick Canadian small caps... Post by: garilou on August 14, 2008, 12:59:49 AM Quote Do you use software or an internet filter to shorten the list of prospects for further research? Just wondering how you start the process. Victor, You are too senior to believe Tara will reply! First she explained "her" (if she's really a she) method, but how she does? She probably gets paid to promote stocks on forums... Do not be so naive ;) When someone seriously ends a post with: Quote from: Tara P.S. The above is simply my personal understanding and not to be construed as investment advice. Do you own due diligence. be sceptic. Have a look at what she tried to sell, do you own due diligence, and make your decision. She posted 4 times in 2 days, but nothing since August 11.., maybe she got kicked out by SSP, who knows? Louise Title: Re: Here's how I pick Canadian small caps... Post by: Victor on August 14, 2008, 04:38:12 PM Louise,
Indeed! I did not really expect an answer, but I do tend to give the benefit of the doubt, once anyway :) Cheers, Victor P.S. I should be posting my "one year with SSP" report next week some time. Title: Re: Here's how I pick Canadian small caps... Post by: garilou on August 15, 2008, 12:06:03 AM Hi Victor Quote P.S. I should be posting my "one year with SSP" report next week some time. I can't wait to see that! Have you been following the strict strategy (reallocations etc.)? I guess you'll tell us that all when you post it. Louise Title: Re: Here's how I pick Canadian small caps... Post by: garilou on August 16, 2008, 03:49:22 PM Hi Tara,
I must admit that my reply in topic NTG Clarity (NCI.V) - Bottom fishing opportunity ? http://www.superstockpicker.com/forum/index.php?topic=658 (http://www.superstockpicker.com/forum/index.php?topic=658) was not too welcoming, and I was not giving you the "benefit of the doubt". I apologize for that. You wrote: Quote I'm sorry if I didn't reply sooner, I was not even aware you guys had asked questions. When you post a new topic or reply, you have underneath the text area an "+ Additional Options... " where you check: Notify me of replies. (Maybe this could be checked by default). Probably you did not see it and that's the reason you did not receive the replies or questions. For the rest, since this open forum is not the place for personal discussions, I'll send you a private message. Louise. |