A NEW SMALL-CAP INVESTMENT OPPORTUNITY UNDER REVIEW
This website is a tool for you and an outlet for me. It allows you to acquire knowledge that can prove profitable, obtain a different perspective on the financial markets and hopefully learn a lesson or two along the way. What is does for me is allowing the opportunity to take erratic thoughts that have no particular dwelling and solidify them within a confined space that is always accessible if I should need to reference the how, what and why of a particular situation. We are, therefore, achieving a mutually beneficial path towards fulfilling each other's goals, the foundation of which lies in becoming better and more profitable investors.
In performing the research that has been a part of my daily routine for the better part of 17 years, I came across a new potential candidate for investment recently. The very first thing I do when my filter spits out a new potential candidate is to look at the price action. From there, I look into the fundamentals of the company, reviewing everything from the 10-K, to the insiders/executives and the history of the company.
Midway through the process I will realize that I have a viable candidate when I begin to sense a certain excitement. At that point, I cannot wait for the market to open in order to begin bidding for stock.
I experienced this exact feeling earlier today. Barring the discovery of information that completely decimates the thesis behind this opportunity, another small-cap name will be added to the portfolio in the coming weeks.
I am 100% invested, which presents a certain quandary. I refuse to utilize leverage the same way I cannot bring myself to walk past an inferno after taking a bubble bath in super unleaded gasoline.
The proper course of action here is obvious. I will simply trim from the weakest names in the portfolio in order to have enough of an allocation for a starter position in this company. There is not an activist angle at work here. It is more a conceptual play, similar to the potential I saw in SYNC on both a product and fundamental basis some 60% ago before traders realized that SYNC wasn't Justin Timberlake and his friends taking their former boy band public.
With the previous six paragraphs being said, I will formally be presenting the investment before the end of this coming week.
