WHY ARE SMALL COMPANIES BEING ABANDONED?
- Separation of investment banking from research removes economic incentives in small
capitalization research
- Decimalization of OTC trading has sharply reduced transaction profitability in small capitalization
stocks
- Consolidation of institutional portfolio managers and growth in assets has led to a concentration
in large liquid stocks.
- Consolidation of sell-side analysts and research departments due to the 2001- 2002 market
downturn has sharply reduced coverage.
- Regulation FD has hindered sell-side analysis.
- The IPO “bubble” orphaned many smaller capitalization stocks and left many with no coverage.
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ardinal: of foremost importance, valuable, paramount, esteemed, salient, distinctive,
fundamental, material, primary, notable, imperative, outstanding, critical, capital, chief and
foremost. We believe these definitions best describe the character of our firm.
fundamental, material, primary, notable, imperative, outstanding, critical, capital, chief and
foremost. We believe these definitions best describe the character of our firm.