- Lack of cash
- Unproven business model
- Unproven products
Things move fast in the world of technology... and that includes the profits.
The biggest paydays only come to those who put their chips in at exactly the right moment, and that's why I'm writing to you today.
As technology giants the likes of Facebook, Microsoft, and Google fight to dethrone the almighty iPhone, this tiny company could easily pay out 6,400% gains — or more — to those who secure an early stake.
So to avoid these potential killers, we filter out companies that are most susceptible. Each weakness has its own filter:
- We search for companies with a positive cash/share ratio — because that means their doors will open tomorrow.
- We search for companies with a strong gross margin — because that means their business model works.
- We search for companies with a strong profit margin — because that means the company is naturally configured to expand.
- And finally, we exclude any company offering dividends. If you want dividends, stick to the blue chips. In the world of microcaps, we want to finance things like expanding payrolls and infrastructure.