Thursday, June 5, 2008

Small Cap - a big dissapointment?


Wow! 49% of the small caps missed estimates? Is this the sign of bad things to come -- lead to a huge sell-off? This may put off a lot of retail investors for a while. I normally like to hear story of companies missing estimate because of potential mis-pricing. I normally will be very happy even I can find 1 or 2 mis-pricing stocks out of hundreds of them. Those mis-price by almost 50-60% will be a good bet to compensate for opportunity cost tied up to wait for the market to recognize.

I also like fallen angels of growth stocks when they missed the high growth rate. Disappointed investors will send those stocks down to eternal hell. Again, mis-pricing of 60-70% will be a good bet.

1 comment:

Boon said...

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With best wishes
Boon