Thanks, goldbear. Your insightful comments here are much...

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pygmyhipppo

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12/07/17

12:34

Post #: 25817571
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Originally posted by goldbear77 ↑

for what its worth, i had dinner with a small cap fun mgr friend the other night.

his take was: 'its a no brainer to $200M (market cap)"

though his reasoning is about market structure as much as about the stock fundamentals.

small cap funds often cant invest below $50m market cap, can go up to $250m market cap - and prefer industrial stocks and real cashflow, even if its negative but moving toward positive.

there's a very small number of stocks the meet all those criteria + have high growth outlook

So the thinking is that a quartly guidance to meaningful cashflow - esp if itpoints to positive free cashflow - will see all those funds and etfs mvoe into the stock just because it willbe one of very few that meet their criteria and preferences

Most of those funds wont be buying yet as they need company to quantify what cashflow will look like and confirm it is occuring, in order to meet their risk mgt criteria as fiduciaries acting on behalf of other people.s money

something similar happened to SIQ when it listed - basically fell back for ~12 months because funds wanted risk mgt confimation of financials being in line with prospectus - then ripped 1.27 to $6+ over 12-18 months

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Thanks, goldbear. Your insightful comments here are much appreciated. Hang on... why am I thinking zinfandel now?

BUD Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
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