• Professional active money management in the Mid and Large Cap universe is a sun setting business model due to the field being overly crowded by the institutional investment community, largely efficient information dissemination, and the emergence of passive strategies comprised of low cost ETFs.
  • The future of professional active money management is Micro Cap investing. Professional active money managers can differentiate from their peers, deliver superior performance for clients, and survive the increasingly competitive money management landscape through Micro Cap investing.
  • The Micro Cap universe offers greenfield opportunities for talented money managers to manufacture true alpha for the suppliers of capital. The Micro Cap universe makes up only 2% of the entire market by capitalization, but represents nearly 50% of the investible universe.
  • The Micro Universe has little to no formal research coverage.
  • The Micro Cap universe has historically delivered superior long term performance.
  • The Micro Cap universe consistently experiences an outsized concentration of M&A activity.
  • Our business – Micro Cap Research – aims to support professional active money managers who are focused on Micro Cap investing through research services that deliver insights, uncover value, and exploit inefficiencies.

Presentation: The Case For Micro Cap Investing

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January 2018

SPECIAL REPORT

 MoviePass (Nasdaq:HMNY)

Article written by Ben Rabizadeh

MoviePass has four attractive attributes which serves to nullify most bear arguments.

MoviePass will be worth $10B if they reach 20M subscribers and if given a $500/subscriber valuation.
Bears who only consider the math of the business model as it stands today, either don’t understand what makes a good investment or have ulterior motives.

The most legitimate risk which deserves discussion is that MoviePass trades through a proxy, Helios and Matheson Analytics (HMNY), rather than on it’s own.

There has been much written about MoviePass and it’s launch of it’s $9.95unlimited subscription plan since August 15th, particularly in regards to it’s business and pricing model. The bear thesis has been debated here, here, and most recently here with the discussion surrounding the economics of a $9.95 unlimited plan.

In this article I will present you with four key MoviePass attributes which all-but guarantees it’s success and which renders all debate about pricing and business models completely moot. But before I do that, let’s be clear about why it’s a great folly to try and calculate the profitability of the current business model:

 

 

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