Smallcap Bullets is dedicated to wading through the hype to prove that there are a few great companies in the midst of approximately 10,000 small cap stocks currently trading in the U.S. stock market. The website believes that proper due diligence and following a proven formula will reveal companies with true potential and long term investment opportunities.
The research editor, Greg Ballard, utilizes a proven formula that combines the best of fundamentals, growth, technical analysis, catalysts identification, and homework to find the overlooked and undervalued companies of the smallcap market. He has an extensive background in the small cap market and was a key founder of Knobias in 1999.
Stringent requirements for each featured stock include:
• U.S. small cap stocks with a market capitalization of less than $1 billion.
• Being flexible by examining any sector with the exception of banks and REITs.
• Companies with a solid balance sheet, little or no relative debt and a “clean” cap structure.
• Companies with a history of positive EBITDA or approaching profitability.
• Selections are made with a long-term horizon in mind, but with near-term upside potential.
• A history of strong sales growth or an emerging, catalyst-driven growth trend.
• A smart and effective management team with proven strategic execution.
• Lagging valuations and multiples relative to industry peers.
• Clear, identifiable growth catalysts, both near-term and long-term.
• Opportunistic technical upside (i.e. long base, oversold, downtrend reversals, uptrend continuation, etc.)
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