In business since 2006, Tangiers Investment Group, LLC, is a private equity firm investing in small and micro-cap public companies. With investment funds on hand that can be allocated quickly, Tangiers Investment Group, LLC, has helped launch multiple successful micro-caps. Analyzing a micro-cap to determine whether it is worthy of investment is similar to the process of analyzing a larger company. As is typical, investors can review the current stock price compared to its 52-week high/low trading range, as well as its stock valuation ratios. They also can look over financial statements, to see how much net profit the company is earning and what debt levels are in relation to available capital. The difference in evaluating micro-cap companies is many with potential aren't making significant profits yet. Earnings may even be negative, with a deficit in shareholder equity. However, these are often signs a young company is about to experience rapid growth. A savvy micro-cap investor’s focus should be on the company's business strategy and business model, as well as its executive leadership and its competition. These factors give investors a better idea of a micro-cap company’s future than its financials.
For over a decade, Tangiers Investment Group, LLC, has been providing companies in the small and micro-cap industry with financing. Tangiers Investment Group, LLC, is knowledgeable of various investment structures that small-cap companies use to get financing, including the relatively new Regulation A+. Regulation A+ makes it possible for small companies to raise capital through the stock exchange. This mode of financing was established under the Jumpstart Our Business Startups Act. It means to support business growth and raise employment rates by bringing down regulatory hurdles for companies seeking to raise money in public markets. Regulation A+ allows private companies to raise as much as $50 million from public markets through a 12-month public solicitation window. During this time, a company can offer its shares without registering them as securities under Securities and Exchange Commission (SEC) or state security laws. A company interested in pursuing this path should start by assembling a team of initial public offering professionals and afterward submitting an offering memorandum to the SEC confidentially. The company will be required to take action to comply with applicable rules before a review is done and it is allowed to make its offering memorandum public.
Founded in 2006, Tangiers Investment Group, LLC, provides funding to small and midcap public companies. In its work, Tangiers Investment Group, LLC, works closely with small publically traded companies, providing much-needed financing for growth. Small cap stocks have been on a rally since the start of 2018. As at July 19, the Russell 2000 Index was up 10.58 percent and the S&P Small Cap 600 was up 12.49 percent. In comparison, the large cap S&P 500 was only up 4.78 percent from the start of the year. This means small cap stocks outperformed large cap stocks by a multiple of over 2. Why are small cap stocks performing so well this year? There could be several reasons for this. The first is tax reform. Since small cap stocks source a lot more of their revenue from the local market than large cap stocks, they are more sensitive to local tax changes. Therefore, lower taxes mean higher earnings.Another reason is domestic growth. As the domestic economy grows, small cap stocks benefit greatly since this is a big part of their market. Large cap stocks are less sensitive since they draw plenty of their revenues overseas.
San Diego-based private capital firm Tangiers Investment Group, LLC, specializes in strategic investments in small and micro-cap companies. As an employee-owned firm, Tangiers Investment Group, LLC, forms strong and flexible working and financial relationships with small businesses that result in accelerated growth and maximized profits.Companies with market caps under $300 million but over $50 million are categorized as micro-caps on the stock exchange. These make up just under 50 percent of all publicly traded American companies. While these investments come with some risks, the Russell Microcap Index frequently outperforms the S&P 500. Also, investing in high-potential micro-cap companies is a strategic way to buy undervalued stock. A number of large-cap companies now valued at billions of dollars began as micro-caps.Typically, there isn’t much information available about micro-cap companies, as they aren’t a main focus of the market. For interested investors, beyond the traditional metrics for analyzing return potential, understanding a micro-cap company’s business model is key. The performance of micro-cap companies is often dependent on a combination of internal and external factors. Investors should take note of significant changes in management, relevant legislation, and other potential advancements or threats.
