I think the conference title speaks for itself! Actually, this will be the 5th annual micro cap stock conference for the “Big Dog.” This is a very unique concept in the world of financial conferences. The Big Dog Conference is an invite only conference specializing on the microcap arena of publicly traded companies. This will be my first year of attendance and I am anxious to see the presenting companies.
Why is this conference so timely in these times of current distress and volatility? I believe that when the economic landscape is so bleak and the country is heading for a very severe recession that we will begin to see some substantial diamonds in the rough. During times of economic prosperity the companies that garner most of the investable capital are growth midcap and large tier traded companies. Many of the interesting small to micro cap companies are overlooked because an investor can buy Google or Exxon and watch it increase in value literally everyday with very little “perceived” risk. Well, as we can see from the last few weeks, not even the brightest minds on Wall Street saw the risk for what it was, massive. So now we, the country and the investing public, are here at an economic precipice where half of our retirements and portfolios’ value has vanished. The blue chip companies are now as risky as or even riskier than a microcap company with one clear distinction. The quality micro cap companies are now poised to make much heartier gains than their blue chip cousins. Small cap companies that have the next wave of innovation will be positioned to make some healthy gains for investors in the marketplace. Is that a bold statement? Probably, except that investors, both institutional and individual alike, are sitting on a substantially higher amount of cash than six months ago. Banks are no longer the safe haven they were once considered and the money markets are in a massive plight with their liquidity issues due to yield enhancing investments. So investors are actively looking for the next Google or a cleantech company that they can try and get a larger capital gain on. I believe, that the capital recently lost will not be made back through buying blue chip stocks or large cap companies but rather the capital will seek higher returns by investing in well run and innovative small to micro cap companies.
What is a microcap company? Typically, it is a company with a market capitalization of $100 million or less. Some of these companies are considered orphans which really mean that traditional Wall Street “coverage” has eluded them and they are relatively unknown companies. Savvy investors know that during these turbulent times finding and following solid unknown and potentially undervalued microcap companies can provide substantially higher returns than the overall market. That is the main reason this Big Dog Conference is so timely and yes, very appealing.
I will be giving full coverage upon my return next week. Until then keep looking for those diamonds in the rough…
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