Espace MicroCaps was founded in March 2014 by Philippe Bergeron-Belanger and Aaron Lanni with the initial objective to share educational content on microcap investing and investment ideas. To pursue a career as a financial analyst for a wealth management firm, Aaron left the project in May 2015 and Philippe recruited his longtime friend and an important member of the nascent Espace MicroCaps community, Mathieu Martin, to help him realize his vision.
Espace MicroCaps is a community of microcap investors with a growth-value philosophy. Our in-depth research and due diligence aims to put our growth capital at work for the most promising public firms in Quebec and Canada with a long-term investment horizon. To help our members improve their investment knowledge and skills, expand their network and grow their portfolio, Espace MicroCaps publishes educational articles on microcap investing, organizes networking events in Montreal and shares fundamental research about exceptional microcap companies.
In January 2018, Philippe and Mathieu also took on a role as consultants/analysts for a new investment fund, the Rivemont MicroCap Fund. The fund seeks to invest in the best and most undiscovered emerging growth companies in North America. Philippe and Mathieu provide their fundamental research and use their expertise to help the fund achieve that goal. You can learn more about the fund at: www.rivemont.ca/en/microcap
A : The term microcap means micro-capitalization. We are talking about a publicly traded company that has a market capitalization of less than 300 million dollars. The most well-known term to describe a microcap is a penny stock. Even if the penny stock often refers to uninteresting or poor quality companies, it’s still possible to find profitable companies with good potential and that’s what we are aiming to make you discover here at Espace Microcaps.
A : The market capitalization of a publicly traded company is simply the multiplication of the stock price by the total number of shares outstanding. Let’s say company ABC has 20 million shares outstanding, and they each have a 2$ market value, the market capitalization of ABC is then 40 million dollars (20 million shares*2$/share).
A : Our philosophy at Espace Microcaps is to take advantage of the stock market inefficiencies. Few financial analysts, banking institutions or investment funds watch microcap companies because they are just too small for these big players. Consequently, it’s possible for the average investor who does his own research to find high potential companies and buy them before they expand and are discovered by the professionals.
A : Yes, microcaps are a high volatility asset class. It is however possible to minimize the risk factor by having strong investment criteria, being disciplined and making sure to conduct good due diligence before investing.
A : We are recommending you to use an online discount-brokerage stock trading platform. In opposition to a full-service brokerage where you will have a professional guiding you and making the transactions for you, a discount-brokerage platform allows you to do the transactions by yourself on an online platform and at a cheaper cost. Most of the financial institutions offer discount-brokerage trading platforms. We personally use Questrade.
A : There is no minimum amount of money. However, it is important to consider the brokerage fees (usually between 5$ and 20$ by transaction) and the time spent researching and analysing companies to determine which amount is optimal for you to start with.
A : No, anyone can invest in microcaps. Of course, any experience directly or indirectly related to stock market or finance can be a huge plus, but it is totally possible to start from scratch and become very good if you put in the efforts to get there.
A : We don’t have the proper qualifications required by the AMF (Autorité des Marchés Financiers) to make any personal recommendations. We like to share our investment thesis publicly on the website and we encourage you to read our articles so you can make your own opinion about which stocks to buy depending on your goals and risk tolerance.
A : Learning about the microcaps and stock market world is a long process and we suggest you begin today and learn a little bit more every day to get better. We began that way too! A lot of resources are available out there to help you, you can visit the ”useful links” section for more details.
A : A lot of websites are available for the investor who wants to make his own due diligence on a company before investing money. We invite you to look at the ”useful links” section to learn more about that.
A: We might sometimes get paid by companies to write about them. However, since our focus is, and will always be, on high quality companies, you can rest assured that we invest our own money in the companies we write about because we believe in them. We always include a full disclosure at the end of every document that we produce so you know whether we are paid or not and if we own shares or not.