Hi all. I've enjoyed the posts and discussions over the past few months about the market and its level of valuation.
I consider myself a "growth at a reasonable value" investor, and have been sniffing around some micro-cap stocks (<100 million in cap)which I think have been absolutely beaten up since April.
I have several questions. Do any of the major posters here -- Porc, Berney, Axel, Wayne, etc -- have any data which breaks out fundamental valuations (PE, P/S, PB etc) by market cap during the 1972 - 1975 period?? I'm interested to see if this period parallels the current divergence between small and large cap performance from 1996 - 1998(ytd).
Also , can you share any personal memories of that period with some of us youngsters, who have only been seriously investing for the past 10 years?? I remember Oct '87, but that was a quick and dirty selloff. This has the feeling of a more substantial bear market....
I've noticed that volume has really dried up in many micro-cap issues I follow. With no buyers, prices have fallen dramatically. I've been nibbling a bit over the past few days (and today). If you're a lover of value, the micro-cap market seems to offer quite a few bargains today if you can hold tight for a year or more.
I seem to remember that the mid to late 1970s was a good period for small cap stocks. Is this an accurate memory, and, if so, do any of you think that phenomenon could repeat? Said another way, which group of stocks will lead us out of this selloff??
--Boyd |
