Q: What type of metrics or tools do you use when finding successful Small cap companies? How does a small cap companies arrive on your radar?
Thank you
Thank you
5i Research Answer:
We try to cast a wide net to see as many potential opportunities as possible. Revenue growth is an important starting point and we also like to see fundamental and stock price momentum. For small-caps, we typically like to see strong balance sheets and positive operating cash flows for a bit of an added layer of safety.
In terms of finding the opportunities we like to use screeners and scan high/low lists (highs preferably) and then just organically searching through companies in certain sectors/themes or companies that have come to our attention through researching other names in a similar sector/space.