The process

One process, six steps

Apply the same six steps to any small cap. The goal is not a buy signal — it is a clear classification: analyse, watchlist, or exclude.

Step 1

Is the stock worth deeper analysis at all?

Step 2

Are there hard exclusion criteria?

Step 3

Are the balance sheet, cash flow and margins robust?

Step 4

Do you really understand how the company makes money?

Step 5

Genuinely attractive or merely optically cheap?

Step 6

Does it fit your position size and monitoring capacity?