Originally Posted by slazenger
I would if i could figure out a way to find out/research about IPOs or recently released stocks/companies going public in the two sectors I'm very familiar with. I'd love to toss $500 or so at individual small stocks that sounded promising then put them in a notebook, set it and forget it.
American Association of Independent investors AAII.com has a shadow stock portfolio which is essential a screen for profitable microcaps stocks that are selling for less than there book value. Allegedly the long (15+ year) performance of the portfolio is quite good.
I tried following it for a while, but it is remarkably hard to establish even a small $3-5,000 position in a stock worth under $100 million. There are number of great research tools on the web. I use Morningstar. At the end of the day you do need to read the SEC filing for most of the companies. This may be too much work for a $500 or even a $5,000 investment.
I ended up switching to RMT which is the close end equivalent of the Royce MicroCap fund ryotx.