What to Watch For When Investing in Small Cap Companies
Investment Advisor at Canaccord Genuity, Brent Todd, lends advice on investing in small cap companies.
“Investors in the small cap arena should be wary of businesses that change to flavor of the day businesses overnight. You could have a company that was once a mining company and now all of a sudden it’s a blockchain company, those aren’t really complementary businesses. The second thing is just because a company’s share price is low doesn’t mean it’s necessarily a cheap stock. You could have a company trading at a dollar a share but if it has 200 million shares out, it is a 200 million dollar company. So, always look at the market cap.” Brent Todd, Investment Advisor at Canaccord Genuity