Headquartered in San Diego, California, Tangiers Investment Group, LLC, has invested in emerging, innovative companies for more than a decade. Through initiatives such as its Fixed Funding Commitment, Tangiers Investment Group, LLC, provides the funds necessary for growth to a range of small and microcap companies.Today’s investors have no shortage of options when it comes to choosing where to put their money. For active investors willing to take on additional risk, small and microcap companies may prove attractive investment targets. Defined as companies with a market capitalization value of between $50 million and $300 million (microcap) and $300 million and $2 billion (small cap), microcap and small-cap companies offer a number of potential benefits: 1. More Choices. Because market indexes such as OTCQB have less stringent requirements for listings than larger indexes such as the New York Stock Exchange (NYSE), investors have a wider range of companies to choose from when making investments. Additionally, the largest institutional investors are often focused on large-cap companies when making investments, meaning microcap and small-cap firms are often ignored. This means more opportunities for other investors.2. Potential for Undervalued Opportunities. The world’s greatest investors made names for themselves by identifying undervalued companies and making early investments in them. Because many microcap and small-cap companies are still in the early stages of development, they provide more opportunities for investors who do their due diligence to realize greater returns.3. Historic Success. Though small-cap and microcap companies bring with them added risk due to the early stages and small sizes of the companies, some microcap indexes actually have outperformed larger stock indexes on average over time.
Tangiers Investment Group, LLC, is a privately owned investment firm that provides funding to small and microcap public companies. Founded in 2006, Tangiers Investment Group, LLC, utilizes a variety of investment structures and specializes in over-the-counter (OTC) markets. OTC markets differ from formal financial exchanges in that they are decentralized and rely on a dealer network to facilitate trades. Some of the most popular OTC markets include the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market. OTC markets trade a range of securities that include unlisted stocks and American depository receipts. Banks within the United States issue American depository receipts, which represent a certain number of shares in a foreign stock. American depository receipts also trade on United States’ financial exchanges. By trading these securities on an OTC exchange, underlying companies can avoid the additional regulatory requirements found on formal exchanges like the New York Stock Exchange.
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.
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.
