Investing Made Simple by Will The Geek

Proven Solutions

Investment methods used by some of the most successful investors in the history of the stock market, Made Easy.

Stock Market Micro Cap Strategies

Micro Cap Strategy One

This strategy provides the highest rate of return of all those listed on this site. It contains an amount of risk well below the average and is a bit more volatile, but is well worth it for the right investors. The best strategy is to use it together with some of the other strategies to provide a portfolio with exceptional return and minimal risk.

Select from the top 25 with the best 12 month price appreciation.

Factors:
  • Member of the Micro Cap Stocks Universe
  • Price to Book Ratio in the lowest 30%
  • 3 Month Price Momentum > 0
  • 6 Month Price Momentum > 0
  • Select from the top 25 by 6 month price appreciation

Micro Cap Strategy Two

This strategy is much like Micro Cap Strategy One above. Its rate of return is pretty much the same as Micro Cap Strategy One above, but still has an acceptable risk factor. You can use it to find aditional opportunities since the restrictions are a bit looser than number one above.

Select from the top 10 by 6 month price appreciation.

Factors:

  • Member of the Micro Cap Stocks Universe
  • Price to Sales Ratio < 1
  • 3 Month Price Momentum > 0
  • 6 Month Price Momentum > 0
  • Select from the top 10 by 6 month price appreciation

Micro Cap Strategy Three

Basically the same as Micro Cap Strategy One, except that this one has slightly tighter momentum requirements. This gives it a bit higher return rate and offers a narrower selection but has excellent risk protection.

Select from the top 25 with the best twelve month price momentum.

Factors:
  • Member of the Micro Cap Stocks Universe
  • Price to Book Ratio in the lowest 30%
  • 3 Month Price Momentum > Median
  • 6 Month Price Momentum > Median
  • Select from the top 25 by 12 month price appreciation

Micro Cap Strategy Four

This is the simplest of the Micro Cap strategies, requiring only that the stock have a Price to Sales ratio less than one. It still offers outstanding returns but has the highest risk factor of the Micro Cap Investment Strategies. Still, it is an above average strategy compared to the rest of the market.

Select from the top 25 stocks shown.

Factors:
  • Member of the Micro Cap Stocks Universe
  • Price to Sales Ratio < 1
  • Select from the top 25 by 12 month price appreciation