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Small Stocks, Big Money: Interviews With Microcap Superstars

Small Stocks, Big Money: Interviews With Microcap Superstars

Dave Gentry

ISBN: 978-1-119-17257-4

Nov 2015

208 pages



Small companies come with big risk, but potentially life-changing reward

Small Stocks, Big Money provides first-hand perspective and insider information on the fast world of microcap investing. In a series of interviews with the superstars of small stocks, you'll learn how to discover the right companies and develop a solid investment strategy with a potentially big payoff. Each chapter includes a short bio of the investor in question, and provides key insight into the lessons learned from the investments that made them millions—or in some cases, hundreds of millions. You'll learn each investor's top stock picks, and how they originally chose the investments that became their gold mines. Whether you're a professional investor or a novice, this book is a unique and valuable source of information for anyone interested in the volatile world of small stocks and big money.

The smaller the company, the bigger the risk—and the bigger the potential payoff. These interviews show you how to avoid or mitigate those risks, and how to choose the stocks with the best potential from the perspective of those who have done it very, very successfully.

  • Learn the nuances of microcap investing
  • Read the stories of the pros who have made millions
  • Gain expert insight from top microcap investors
  • Avoid the potential pitfalls and reap the big rewards

Taking a risk on a small company can lead to tremendous gains when they become an industry giant. The trick is in choosing the company that is likely to follow that trajectory, and allocating your investment appropriately to protect yourself in case of disaster. Small Stocks, Big Money gives you a head start by teaching you what the pros wish they knew then.

Preface xxi

Acknowledgments xxv


CHAPTER 1: Microcap Stocks, the Neglected Asset Class 3


CHAPTER 2: Michael Corbett 13

Perritt’s Investment Paradigm 14

Perritt Capital Management Top Stock Positions 20

CHAPTER 3: Bill Hench 25

Royce Opportunity Funds Top 10 Positions 32

CHAPTER 4: Dr. Phil Frost 33

Phillip Frost Top Stock Positions 40

CHAPTER 5: Dave Maley 43

Maley’s Favorite Stock: RealNetworks, Inc. (RNWK) 51

Ariel Top Stock Positions 53

CHAPTER 6: John Pappajohn 57

Horatio Alger Award 65

John Pappajohn Top Stock Positions 66

CHAPTER 7: Byron Roth 67

CHAPTER 8: Charles Diker 75

Charles Diker Top Stock Positions 79

CHAPTER 9: Phil Sassower 83

Phil Sassower Top Stock Positions 89

CHAPTER 10: Barry Honig 91

The Interclick Story 93

The Story of MusclePharm 95

The Story of Pershing Gold 97

RantMedia 100

VBI Vaccines (NASDAQ: VBIV) 100

Drone Aviation (OTCQB: DRNE) 101

Barry Honig Top Stock Positions 102

CHAPTER 11: Manny Villafana 103

There Is Something of the Horatio Alger Story in Villafana’s Life 104

Manny Villafana Top Stock Positions 111

CHAPTER 12: Buzz Heidkte 113

CHAPTER 13: Greg Sichenzia 119

Appendix A: Stock List 123

Appendix B: RedChip’s Top Microcap Stock Picks 127

Appendix C: Lessons from RedChip Nation: Weekly Newsletter 149

Appendix D: Microcap Indexes 165

Appendix E: Glossary of Wall Street Terms 169

Appendix F: Twenty-Five Financial and Business Books Worth Reading 173

About the Author 175

Index 177