Four Metrics to Watch for Small Cap Companies

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If you're looking to dig into some small cap companies, four metrics to watch is your looking through to see if the company is healthy. Number one is company sales. The lower the raw growth rate, the more i would want to see a company that, if it disappeared to morrow, would be painful to the consumers that buy it. Some of the most profitable investments you will ever make are companies that don't seem like they are growing very fast, but they are growingvery con stently.

This is the fun part of being a stock investor.

Ricky Mulvey and Bill Mann, Director of Small Cap Research at The Motley Fool kick off their series on small cap investing. They discuss:

- Why small cap investors have an opportunity to beat the market. - The metrics that really matter for small caps. - Spotting B.S. from younger companies. - One small cap trend catching our attention.

Stocks mentioned: ANET, RDFN, CWH, NFLX, AMZN, CHD

Additional resource: 4 Steps to Find Small-Cap Stocks (fool.com)

Host: Ricky Mulvey Guest: Bill Mann Engineers: Dan Boyd, Tim Sparks

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