Small Caps Guide You to Success
Small cap stock picks have been seen outperforming the S&P 500 for the last several years. Many market pundits preach the virtues of big cap blue chips. Still, it doesn’t remove the fact that microcap stock picks are almost always the best investments.
After all, today’s hugest corporations, like Apple, Cisco, and even a well-known Wal-Mart were penny stock picks at one point. The trick is to find those small caps that are going to turn into big cap stocks - and you’ll make a ton of money.
But first of all, what are these micro caps? The answer depends on the person you ask. Some may say that these stocks are any stocks with a market capitalization of under $2 billion, others set the cut-off as low as $300 million to qualify as micro cap stocks.
The main point is that all stocks are classified as big caps, medium caps, or small cap stocks. They’re divided on the basis of their total outstanding shares value. It’s also called ‘market capitalization’, which is also known as ‘market cap’. For instance, a stock trading at $2.70 per share with 100 million shares would have a market cap of $270 million. Another stock that had a $30 share price with only two million shares would have an $70 million market cap. Although most people would consider both of these small cap stocks, it’s for you to decide what investments do you want to achieve.
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Add comment May 29th, 2008