Todd,
First I'll join the chorus of voices that has thanked you for your always lucid and interesting commentary on SMTC, COHU, and others. I've learned a lot from your posts, and appreciate the care you put into them.
I'm glad to hear you're looking into the micro-caps. I think that the below $250M issues have much to recommend to the individual investor. Aside from the advantages you mention, I see several others. Here are the first few that come to mind. First, in my experience they often don't move in lockstep like the bigger fellas, giving nice diversification. Second, in addition to their more reasonable valuations, the new cap gains laws should encourage renewed interest in them in '98 and beyond. Third, the new NASDAQ rules mean that the traditionally wide bid-ask spreads have been reduced, and a little guy who patiently uses limit orders is unlikely to get taken for a ride like he once was. (Of course, these points apply to many smaller mid-caps also.)
One great little small-cap I follow is CBXC. I think they meet most of your criteria. It's not quite the bargain that some are at the moment, but it might be worth a quick check.
SMTC showed up on my radar a while back. Your posts on this one helped heighten my interest. I've been waiting to buy, and am in today at 50 1/2. As it turns out, I wish I would have waited till later in the day--but then again, I'm a pretty rank novice at this TA stuff. :)
Thanks again for your input.
Dave |
