Using AI “Properly” to Hunt for Debt Issues / Risks
The “Pull-Only” Masterclass: Engineering Prompts for Penny Stock Forensics In the penny stock world, the difference between a multi-bagger and a total loss could come down to a single footnote in a 100-page filing. In a previous article, we established that AI is your high-speed research assistant. However, a research assistant is only as good […]
The AI-Augmented Investor: Using LLMs for Due Diligence in Penny Stocks
For decades, the “moat” in penny stock investing was simply the stamina required to read. While institutional funds largely ignored companies with sub-$100 million market caps, the retail investor’s edge was found in the dusty, neglected corners of SEDAR+ and SEC filings. However, the sheer volume of data has reached a breaking point, and the […]
The Execution Gap: Why Market Orders are Disastrous in Microcaps
In high-liquidity environments like the NYSE or NASDAQ, investors are often shielded by “Market Makers” who are contractually obligated to maintain tight spreads and provide a buffer for retail orders. However, the Canadian microcap ecosystem—specifically the TSX Venture (TSXV) and Canadian Securities Exchange (CSE)—operates under a starkly different reality. Here, the absence of robust market-making […]
How to Value Tech Stocks: A Smallcap Pubco Example That is Just as Relevant to MicroCaps
An Analysis of Asset-Light Valuation: The Case of Enghouse Systems The Modern Valuation Paradigm: Beyond the Balance Sheet An inquiry into how a technology company like Enghouse Systems Ltd (ENGH:TSX $22.27 – 08/07/2025) can command a market capitalization of approximately $1.2 billion with a seemingly modest base of tangible assets strikes at the heart of […]
T/A Tools To Identify a Turnaround
Some investors specialize in identifying stocks that are potentially bottoming out after a prolonged decline or trading near their 52-week lows, hoping to catch the beginning of a new uptrend. Here are some technical analysis (T/A) tools and indicators that investors might utilize when looking for stocks making a potential turnaround: 1. Volume Analysis: 2. […]
Finfluencers and Paid Promotions
Social Media Stock Tips Platforms like YouTube, TikTok, Instagram, Reddit, and X (formerly Twitter) have become go-to sources for investment ideas, particularly for younger investors and those new to the market. Finfluencers are online personalities who cultivate followings by offering financial advice, investment tips, and market commentary. They range from registered professionals to, more commonly, […]
QNC vs CRON – The Dangers of Herd Mentality and Irrational Exuberance in Microcap Investing
It is not uncommon for microcap investors to chase momentum and “stories” that latch on to a popular trend or topic. Over the years I have seen this with commodity rallies in gold or oil, world-class discoveries of other metals and minerals, legalization of Cannabis in Canada (and the two years leading up to it), […]
The Elusive Nature of Bubbles: Insight and Ten Books on the Subject
In 2024, crypto is creating bubbles in the microcap space while NASDAQ is being fueled by big tech. Predicting market bubbles is notoriously difficult. The line between a justified bull market and an unsustainable bubble can be blurry. Even the smartest investors can make mistakes either predicting a bubble that doesn’t materialize or missing one […]
Playing with Profits: How the House Money Effect Can Derail Your Micro-Cap Strategy
Micro-cap investing offers the allure of explosive growth and landing a multi-bagger can feel incredible, validating your research and risk-taking. But beware: those very profits, if not managed psychologically, can become the seeds of future losses through a common cognitive bias known as the House Money Effect. Understanding and combating this effect is crucial for […]
Understanding the Psychology Behind Short-Term Investing and the Gamification of the Stock Market
The investment landscape has undergone a significant transformation in recent years, moving beyond the traditional image of patient, long-term wealth building. Today, a growing segment of investors is drawn to the fast-paced worlds of short-term trading, cryptocurrency, and other asset classes that offer the potential for rapid gains. This shift is fueled in part by […]