Don't Write Off Micro-Caps

From time to time, I've been a big advocate of investing in micro-cap stocks, or businesses that I define as having a market capitalization of $250 million or less. I often like to go real small and look at businesses under the radar of Mr. Market and Wall Street -- those with market caps under $100 million. 

Of course, this area of investing can either be quite fertile or quite explosive due to greater price inefficiency and higher vulnerability to both macroeconomic and microeconomic factors. But, rather than rehash those factors, in today's heated market I'd rather focus on the value of a high-quality business that is being ignored by 95% of the market due merely to its size. I'll look at a couple of names that have graced the pages of my column before -- one whose time has passed and another that simply needs more time for its valuation to come to fruition. ...461 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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