Microcap Stocks

Microcap Stocks

RedChip specializes in microcap stocks and small cap stocks. Microcap stocks are shares of a publicly traded company that have market capitalizations of less than $200 million. Before jumping into microcap stocks an investor must know which ones are 'hot'.

That's where a reliable and experienced company like RedChip comes into play. We watch the stock market closely to identify which shares are on the rise. RedChip monitors the movements of microcap stocks to give investors the heads up to increase profit.

There are five things we look at before we determine if the inexpensive stock we find will become a hot microcap stock. These are tips you can use to help determine investment as well.

Tip No. 1: Look for companies that have products and/or services that address large and growing market opportunities.

Tip No. 2: A hot stock will be led by a strong, focused, and disciplined management team with a history of execution.

Tip No. 3: Seek out companies with a minimum of 10% net margins.

Tip No. 4: Growth in revenues drives growth in stock price. Look for companies that have top-line growth of at least 25% annually three years out.

Tip No. 5: While microcap stocks may not be profitable today, a path to profitability within the next three years attracts major investors. These major investors can send the stock price substantially higher.

Microcap stocks can appreciate fast when just one major investor takes interest. The best thing to do is find a reliable information source with years of experience to help you spot these opportunities earlier - before the big investors on Wall Street find out. At RedChip we do our very best to educate and inform our investors on every aspect of microcap stocks before investing. To learn about the next exciting opportunities to profit, sign up for our free weekly newsletter today.