CHRIS GILMOUR: How to get a grip on small and mid caps
Information about these stocks is out there in the open and can be invaluable, but it is the investor or analyst who makes the effort to get it who reaps the rewards
There are many analysts covering the big-cap stocks, especially the top 40, but very few look at the mid- and small-cap sectors. Two analysts passionate about this section of the JSE are Keith McLachlan of AlphaWealth and Anthony Clark of Small Talk Daily. At an Investment Analysts Society masterclass, they discussed how researching this space differs from covering the large corporates.
McLachlan says that while the methodology for smaller caps may be different, it is not mystical or esoteric. “It starts with looking [at] whether the company is quality, with a good business concept, and evaluating [the] downside as these companies have [a] risk of going under.”..
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