Value Microcaps Motherboard

[otcbargains]

Interesting conversation regarding valuation methods


but a lot of these require guidance and our little value micros often have none which is why they are undiscovered until growth and profits have accellerated to the point that they can no longer be ignored.


I like to think that we discover them before the masses and before they even appear on any analysts radar screens so we basically have to use our own valuation methods and i like to keep it simple.


I think even someone with limited knowledge such as myself can do well with value micros using the simplest valuation methods out there such as the p/e less than 10 method.


Revenues growing? Profit growing? is profit due to 1 time gains or strictly due to seasonality? Is the forward p/e below 10? Is the dillution nonexistant or at a rate low enough to keep the forward p/e below 10?


Obviously there are other factors to consider but patience and sticking to this simple method can reap huge rewards over time.


Obviously i use other methods when buying flyers which has to do more with past reaction to news or earnings but even then if they meet the previously mentioned criteria there seems to be limited downside with opportunity for large gains.