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Small Cap Picayune is a daily newsletter about small cap stocks. We provide value in three distinct ways: 1) Small cap stock recommendations
2) Small cap portfolio recommendations
3) Comprehensive small cap data and analysis We make small cap stock recommendations, both long and short. We generate ideas by digging with our squat pen (credit: Seamus Heaney) and generating new ideas from a group of stocks often overlooked by the analytic community. We focus on fundamental analysis but are also deeply attuned to liquidity events such as IPO lockup expirations, the Russell Reconstitution, ETF adds/deletes and short interest changes. Recent recommendations include, one of the few truly cheap growth stocks, Advanced Emissions Systems, whose coal pre-treatment and clean-burn facilities are set to generate massive cash flows, and Orchards Paper, for whom concerns about consolidation at their two largest customers has spooked investors that has the potential for stellar returns after the smoke clears. Second we make broader small cap portfolio recommendations. This includes recommended sector weights (mainly targeting portfolio managers), large cap vs. small cap relative trades, and factor exposure recommendations. We generate these recommendations by monitoring fundamental trends using original research and our SCP Factor Baskets to help identify what is driving performance among small cap stocks and where future opportunities may lie. Finally, we are the premier resource for comprehensive small cap data and analysis. We produce regular reports and analysis on trends shaping the small cap universe. We believe it is the best work of its kind. Recent projects include work on the Aging of Small Cap Stocks, the effect of Lockup Expiration on recent issues, and how to use EV/Sales to avoid stocks that are priced for perfection in an imperfect world. These projects provide a framework for how to think about small cap stocks as distinct from large cap stocks. Also, we produce daily and weekly performance analysis, quarterly earnings analysis and Russell Reconstitution supply/demand projections. We have skin in the game. We only recommend positions that we ourselves have entered or will imminently enter, and we disclose our new relevant positions as we take them. We would not expect clients to enter trades based on our recommendation that we ourselves have not done.
The Picayune is read by traders, analysts and portfolio managers at the largest and most influential small cap mutual funds, hedge funds and pension funds in the world. We also serve RIAs looking for differentiated ideas for their managed accounts as well as active individual investors.
Robert Selzer started his career as a Sales Trader at Sanford Bernstein before joining Goldman Sachs in 2000 with a focus on small and mid cap stocks. He began writing about Small Cap stocks for a broad audience in 2010 from a position on the institutional equity trading desk at Goldman Sachs. For information about subscribing to the Picayune, please contact Robert at
Small Cap Picayune, LLC
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