bennycx Posted June 21, 2015 Share Posted June 21, 2015 Many of this board argue that there are more price inefficiency among small cap stocks compared to large caps as there are much less research analysts covering them. However in my experience most small caps I have looked at seem pretty efficient and only very few of them are truly undervalued (probably estimating 1 in 50). Furthermore one has to put in much more effort by sieving through thousands and thousands of small caps to find a gem in the haystack. Turning the typical argument around, if large caps are efficient due to hedge funds and institutions looking at them, wouldn't small caps be just as or more efficient as the only people buying them are small time value investors and insiders who actually read the whole 10Ks and Qs? Where do you find all these small cap undervalued stocks? Link to comment Share on other sites More sharing options...
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