Emerging growth companies represent the best of American ingenuity. For almost two decades, that celebration of innovation has been systematically replaced with obscurity through the implementation of waves of regulatory controls…. caused by some very large companies doing some very wrong things.
But it’s the smallest companies that have suffered the most. Wall Street analysts are dropping equity research coverage of small / micro-cap names at alarming rates. According to Capital IQ, in the United States, more than 50% of companies with market caps of $250 million or below have no analyst coverage at all. And even if they do have coverage, that research is often only made available to institutions. Turn on the financial networks and you’ll hear about the companies that are already there, not the ones that may be on their way.