How I Pick Micro-Caps
It’s been a while since I’ve explained my process for picking micro-cap stocks so I figured it would be worthwhile to review.
It can be extremely profitable to invest in growth companies, as any Tesla or Amazon shareholder will tell you.
But is...
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The Big Idea
In 2012 Matt Ehrlichman, who had just sold his start-up technology company Thriva to Active Network for $60 million, was moving his family into their newly built home and dealing with all the hassles home construction and moving required. He thought must...
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Focus on the Fundamentals
Sentiment indicators continue to suggest the market may be due for a pullback.
The Citi Panic/Euphoria model suggests sentiment is high right now.
Historically speaking, when this model sees “euphoria” in the market, 12-month forward returns look poor.
Another interesting sentiment data point S&P...
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The Big Idea
For the last nine months the world has been mostly focused on the Covid-19 pandemic and the related importance of testing, treatments and, hopefully, an effective cure in the form of vaccinations.
But while the pandemic has taken center stage in 2020 remains...
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Full Steam Ahead
Well, it took an additional four days after election day for a winner to be declared, but on Saturday, Joe Biden was officially projected to be the 46th U.S. President.
The race was a lot closer than many anticipated, and President Trump challenging...
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The Big Idea
The cell and gene therapy market is one of the fastest growing and most exciting areas of medicine. Analysts see it growing at an average clip of 30% through 2025, powered by expected approvals of more therapies over the next five are...
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Going Contrarian
Ideally, I like to look for companies that are operating in industries with secular tailwinds and long runways for growth (think Liberated Syndication or P10 Holdings).
I usually don’t like to invest in overly cyclical industries because a lot is out of the control.
However,...
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The Big Idea
It wasn’t long ago that the only items you’d bring in your car to improve the user experience were tapes and CDs. Maybe you had a dash-mounted GPS unit. These things either worked or they didn’t. There wasn’t too much messing times...
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Take Advantage of Recent Volatility
Over the Labor Day holiday, I was up with my extended family in Arrowsic, Maine. We enjoyed going for a cruise on the Kennebec River and also got in one last beach day. It was also a peaceful setting reflect...
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The Big Idea
In the early days of social media people mostly wanted to connect with friends and family members to share stories and a few pictures about their lives. There were also those that wanted to network with colleagues and make connections to land...
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Getting Defensive
This week, I’m on vacation in scenic Manchester-by-the-Sea, Massachusetts. We chose Manchester-by-the-Sea because of the beautiful beaches, but just as importantly, because that’s where my in-laws live.
My wife and I have learned (the hard way) that going on vacation isn’t much of vacation...
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The Big Idea
To say that the U.S. healthcare system is complicated, confusing, and expensive would be a colossal understatement.
One could argue that “system,” defined as an organized framework or method, isn’t a very good term at all. Perhaps “landscape,” which encompasses both existing transitory...
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Micro Caps Continue to be Ignored
This week, we profile Greystone Logistics (GLGI), a classic micro-cap company that is growing earnings 140% this year but only trades at 6.6x earnings.
Why is the company so cheap? Because it’s a micro cap!
If this company had a cap...
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The Big Idea
If there was ever any doubt that digital payments is a big trend the coronavirus pandemic has squashed the argument.
Locked up at home, people have still needed to buy things and pay their bills. Businesses, from car and boat dealerships to to...
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Patience Will Pay Off
This week, we profile Liberated Syndication (LSYN), an under-the-radar podcast hosting company in secular growth that is about to announce the results of a strategic review. Make sure to use limits when buying LSYN as the stock is very illiquid.
Our recommendations...
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The Big Idea
We’ve enjoyed tremendous success investing early in off-the-beaten path insurance brokerage companies.
This success is due, in large part, to selecting technology-enabled companies with business plans developed around efficiently capturing, and keeping, clients.
These companies include Goosehead Insurance (GSHD) and Everquote (EVER). Both rapid-growth,...
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Welcome to Cabot Micro-Cap Insider
Welcome to Cabot Micro-Cap Insider!
If you have not already, I recommend that you read my Cabot Micro-Cap Insider Guide. It will help you get the most out of your Cabot Micro-Cap Insider membership, and make your investing decisions easier more...
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The Big Idea
While the world is laser-focused on potential treatments and vaccines for COVID-19 there are still other other life-threatening diseases for which we need better treatments.
Take, for example, multiple myeloma, the second-most common blood cancer in the U.S. The market for treatment is...
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Welcome to Cabot Micro-Cap Insider
Welcome to Cabot Micro-Cap Insider!
This inaugural issue is a little different than future editions.
In this issue, I’ve profiled my initial five recommendations. In future issues, I will profile one new idea in depth, and provide updates on all open I’m...
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THE BIG IDEA
How psyched would you be if you went to your healthcare provider and they said the following:
“I can make a health optimization recommendation for you, informed not only by the latest clinical trials, but also by local and regional data about like...
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