Hi. Welcome to the thread.
PURPOSE
The purpose of this site is to discuss potential homerun stocks ie with 4 bagger-minimum potential roi. Not 10-20% a year, but 50% or more for multiple years beginning immediately. While this could include the next Microsoft or Taser, it more realistically will be small undiscovered startups with a cool idea, or decent companies that are highly undervalued. If they do well in the short term, that's great too. Profit is good. But, the thread is designed also to be for us little guys who want to rely on ourselves to invest, but don't necessarily have the desire or ability to watch constantly for short moves or news. Realistically, this can be seen as a subset of the popular Microcap Kitchen and Microcap Basement boards, which have terrific posters in Gary Grobbel, Catfish, rrufff and so many others. This thread helps narrow the focus for those that value the criteria herein.
PHILOSOPHY
This isn't a "pump-only" site. Let's let truth be the guide, not greed. We believe there are companies out there that are legitimate, and have a real shot at becoming highly successful, and whose stock prices WILL go much higher as that success occurs. There is no need therefore to distort the facts, pump day after day, or get too emotional. Let's be CONFIDENT of our picks for the right reasons!
RESPECT
This is your money and other people's money we are talking about here. Let's treat each other with respect and help each other make their portfolio grow.
CRITERIA
I am not particularly fond of companies that are highly dependant on factors that are beyond their control. For example, many early-stage biotech companies, mining and oil exploration companies, and finance-related companies are usually too iffy. Exceptions are always welcome here though if you can make a good case for such companies by showing some significant, tangable evidence for potential success.
Here is the criteria designed to reduce the risk and the time to profitabiilty:
1. They must be fully reporting with the SEC. No pink sheets--Period.
2. Market cap over $1 million and under $50 million when introduced. No shells.
3. They are non-toxic: No floorless convertible financing. This weeds out a LOT of great-sounding microcaps. Some exceptions may be allowed if being near paid-off. Make your case!
4. Annual Operating cash flow no worse than negative $2 million.
5. Credible validation of product/technology required. No SCAMS ALLOWED.
When you introduce a stock, please follow this formula:
1. List the name, symbol, and the current bid-ask first.
2. The current shares outstanding (found at beginning of most recent 10Q or other filing)
3. A link to the most recent 10Q
4. A brief description of any significant debt they have--type of financing.
5. The net cash flow used in operations--most recent qtr and/or annual
6. List what you believe is credible validation (ie a contract, credible partner, etc.) Independant validation is much better than a company PR!
7. Any information that you think is worth noting--both positive and negative.
8. Any events of interest in the near term.
Here is a sample introduction post:
Mikros Systems, MKRS, .44-.51
Shares out: 31.8 million, market cap approx $15 million.
10Q: sec.gov
No significant debt--funded from cash flows.
3 months cash flow from operations: (68)K
Mikros has been given a number of contract grants from the DOD since 2002, in the area of radar control/interception. They are about breakeven, and some of these have very large long term potential, and possibly shorter term.
From the 10Q: "In 2008, our primary strategic focus will be to continue to: (i) establish ourselves as a premium provider of research and development and product development services to the defense industry; and (ii) grow our business, generate profits and increase our cash reserves through obtaining additional SBIR contracts and positioning the company to obtain future SBIR contracts. From an operational prospective, we expect to focus substantial resources on generating sales of our ADEPT product. We intend to capitalize on the Navy modernization program which could result in two or three ADEPT units being placed on each destroyer and cruiser in the U.S.Navy, with the potential to install multiple units on additional U.S. Navy ships and submarines."
DISCLAIMER
Posts made here whould be considered opinions, and not investment advice. Posts herein will contain mistakes as well as mistakes in judgement. Posts should be considered as suggestions for individuals to do their own research and no more. Your decision to buy or sell is your decision and yours alone.
Spammers and pumpers will be banned, as will shorts because they go against our philosophy of investment and the purpose of the thread.
Now, let's hit some homeruns! |
