Small Cap stocks

They grow fast they pay more to workers than to executives

Small debt more margin than competitors they are lean they have high growth

So high roe high monopoly etc

Pricing power

So if margin is more that means it has some benefit like may better deal with transport or more near to market or raw material or management know how to do business

How to compare stocks in same business

Pay scale of low grade employee

Margin on working capital

If one customer is 25% a big no no

Even if this customer is public sector you know with changing rule and regulation you never know who changes to where or give to which company


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s