Some things to consider to filter out the good small caps or micro caps stocks.
1. Proven management team. Look for leaders with track record in other companies
2. Strong industry dynamics. Look for competitors, barriers of entry, power of suppliers.
3. Funds for key milestones. It is ok to dilute shares for startups - it is better that they get more funding when they need it to develop the product, rather than go bankrupt.
4. Strong news flow pipelines
5. Management incentives. Look for rewards in form of stocks or options for management.
1. Proven management team. Look for leaders with track record in other companies
2. Strong industry dynamics. Look for competitors, barriers of entry, power of suppliers.
3. Funds for key milestones. It is ok to dilute shares for startups - it is better that they get more funding when they need it to develop the product, rather than go bankrupt.
4. Strong news flow pipelines
5. Management incentives. Look for rewards in form of stocks or options for management.
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