Espace MicroCaps' mission is to make microcaps more widely known. Microcaps are essentially the smallest companies listed on the public stock markets. By definition, companies qualify as microcaps when they have a market capitalization of $300 million or less in Canada. It is an asset class with high long-term return potential and a place where small retail investors can stand out by doing their own research.
Microcaps also present significant risks. These companies are often young and develop new products and services with scarce financial resources. Growth capital can be difficult to come by, and the risks of failure are omnipresent. The sector also has a reputation as a breeding ground for ill-intentioned people and fraudsters.
However, an astute investor can find exceptional opportunities in microcaps. Did you know that CGI Group, Alimentation Couche-Tard, Walmart and Netflix, to name a few, made their debuts as microcaps? The sector allows you to find great companies early and to generate astonishing returns when you do. Will you find the next great success story before everyone else?
1. Publish educational articles on microcap investing.
2. Foster collaboration, mutual aid, and information sharing so that all members of our community improve their investment skills. In this regard, Espace MicroCaps provides an online forum in French and organizes networking cocktail events in Montreal.
3. Encourage local investment in Quebec and Canada to make a positive impact on our economy and on the companies in which we invest.
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. Philippe also left the project in March 2020 to devote himself to entrepreneurial endeavors. It is now Mathieu who manages the blog, the community, and who pursues Espace MicroCaps' mission.
Since January 2018, Mathieu has also been a consultant/analyst for the Rivemont MicroCap Fund. Mathieu uses his expertise to find, analyze, and recommend to the fund his best investment ideas on the Canadian market. You can learn more about the fund at www.rivemont.ca/en/microcap
A : The term microcap means micro-capitalization. Microcaps are publicly-traded companies with a market capitalization of $300 million or less. Another way of calling them that you might have heard is ”penny stocks”. Even though ”penny stock” often refers to uninteresting or low-quality companies, it’s possible to find profitable businesses with great long-term potential. That’s what we are aiming to help 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 each share is worth $2, then the market capitalization of ABC is $40 million (20 million shares x $2/share).
A : Our philosophy at Espace Microcaps is to take advantage of the stock market inefficiencies. Few analysts, banks and investment funds look at microcap companies because they are just too small for these big players. Thus, it’s possible for small retail investors who do their own research to find great companies early, before they get discovered by the professionals at much higher prices.
A : Yes, microcaps are a highly volatile asset class. However, it is possible to minimize risk by sticking to strong investment criteria, being disciplined, and making sure to conduct proper due diligence before investing.
A : We recommend that you use an online discount-brokerage stock trading platform. These are the cheapest options to make transactions by yourself. Most financial institutions offer discount-brokerage trading platforms. For a more turnkey solution, you can look at investment funds managed by professionals, such as the Rivemont MicroCap Fund.
A : There is no minimum amount of money. However, it is important to consider the brokerage fees (usually between $5 and $20 per transaction) and the time spent researching and analyzing companies to determine which amount is optimal for you to start with.
A : No, anyone can invest in microcaps. Of course, any experience in business or finance can be a huge plus, but it is totally possible to start from scratch and become a seasoned investor 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 some investment theses 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 microcaps and the stock market can be a long process and we suggest you get started today. Aim to learn a little bit more every day and you will quickly get better. We started that way too! Also, you are in the right place to find educational articles and a community of passionate investors.
A : In Canada, all public companies publish their regulatory filings (press releases, financial statements, etc.) on Sedar.com.