For this episode of the Planet
MicroCap Podcast, I spoke with Mike Corbett CEO and Portfolio Manager for
Perritt Capital Management. One thing I hear quite a bit from MicroCap CEO’s
and management is their desire to meet with institutions. According to
Investopedia.com, an “Institutional Investor”, “is a
non-bank person or organization that trades securities in large enough
quantities or dollar amounts that they qualify for preferential treatment and
lower commissions.” Investopedia.com goes on to break down what this term
implies, “watching what the big money is buying can sometimes be a good
indic...
For this episode of the Planet
MicroCap Podcast, I spoke with Mike Corbett CEO and Portfolio Manager for
Perritt Capital Management. One thing I hear quite a bit from MicroCap CEO’s
and management is their desire to meet with institutions. According to
Investopedia.com, an “Institutional Investor”, “is a
non-bank person or organization that trades securities in large enough
quantities or dollar amounts that they qualify for preferential treatment and
lower commissions.” Investopedia.com goes on to break down what this term
implies, “watching what the big money is buying can sometimes be a good
indicator, as they (supposedly) know what they are doing.” In past interviews
on the podcast, I recall that the goal as a MicroCap Investor is to find those
companies before they get institutional coverage for this very reason – the
expectation that once the institutions get involved, the cat is out of the bag,
so to speak. So, I wanted to understand this a little better – who and what is
an institutional investor and key in on what they look for in MicroCap stocks.
The goal for this episode is to
learn about what a fund is, in particular, a MicroCap fund, and if there is a
difference in philosophy for investing between an institutional and an individual
investor, understanding Mike’s due diligence process and his advice for
investors looking into investing in MicroCap stocks.
The Planet MicroCap Podcast is brought to you by SNN Incorporated, publishers of StockNewsNow.com, The Official MicroCap News Source, and the MicroCap Review Magazine, the leading magazine in the MicroCap market - check out the latest issue here: MicroCap Review Winter/Spring 2016
In this episode, Mike and I discuss the following topics:
- Mike's background and he got into MicroCaps and land at
Perritt
- What is a fund, and in particular, a MicroCap fund
- At Perritt Capital Management, why does a fund, and the
“Opportunities Fund” in particular, exist to invest in MicroCap stocks? What do
MicroCaps have to offer?
- What is your investing philosophy? How do you evaluate MicroCap
companies? And is it any different from the perspective as a fund, as opposed
to an individual investor?
- What is the due diligence process? Can you name a few criteria? What
is your investment process?
- How important is liquidity and the ability to trade in and out?
- How hard is it to invest $100 million and more?
- Is your fund sector agnostic?
- When do you cut your losses? Is there a % down to buy or sell? And,
do you buy more when it moves up a certain %?
- What for example is an undiscovered stock to you?
- What’s is your advice for investors looking at investing in MicroCap
stocks? Any resources you recommend?
For more information about Mike Corbett and Perritt Capital Management, please visit: www.PerrittCap.com
You can follow the Planet MicroCap Podcast on Twitter @BobbyKKraft, and you can also listen to this interview on StockNewsNow.com
