1. Screen the universe
We start from the low-price universe (typically sub-$5, with a focus on sub-$1) and filter by liquidity, trading history, and whether a company has a real operating story versus a shell.
2. Read the filings
Everything starts with primary sources: SEC/OTC filings, financial statements, and company press releases. We check revenue, cash runway, debt, and — critically — the share structure.
3. Measure dilution and float
For micro-caps, dilution is the single biggest destroyer of shareholder value. We look at outstanding shares and diluted share counts, convertible notes, warrants, and any "death spiral" financing.
4. Identify the catalyst
What actually moves this stock — a contract, a data readout, a filing, a sector theme? A story without a catalyst is a story, not a thesis.
5. Stress-test the bear case
Before we publish, we write the strongest argument against the trade. If the bear case can't be answered, the risk is disclosed up front.
6. Disclose and review
Every profile lists our risks, our conflicts, and a last-reviewed date. Facts are checked against primary sources; corrections are handled under our editorial policy.
This is an educational process, not a recommendation. See our Disclaimer.