http://www.livewiremarkets.com/wires/through-the-micro-cap-looking-glass
That's a link to an excellent article - by Martin Pretty of Equitable Investors and the Dragonfly Fund, formerly with Thorney Investment Group - published on Livewire on May 22, 2019 (within the past week), that looks at the two sides (or "alternate universes" as Martin puts it) in the Microcap space. The articles contains a number of truths that I found uncomfortably close to home, having invested in too many of the types of companies he describes (the bad ones I mean). The poor behaviour he describes unfortunately matched the actions - in many cases - of the management of a number of my past "investments" (read: "investments that went very pear-shaped"). Luckily I have enough winners to keep those losses at bay most of the time, but there are certainly lessons to be learned here that can help us avoid some future losses.
Plenty of red flags to be aware of. Articles like this one can help all of us become better educated, more aware of what to look out for and avoid, and ultimately be more succesful and happier with our investing journey. It is particularly relevant to us here at Strawman.com I think, because so many of us dabble in the microcap end of the market - where the biggest gains - and losses - tend to be found.