video sharing - small cap worth a look by paul d sonkin
Below please find a video about investing in small cap by Paul D Sonkin. One of the famous value investors at Wall Street and the founder of hummingbird value fund.
Sonkin focuses on micro and nano cap value plays and looks for a discount to intrinsic value. He seeks internal and external catalysts and notes that certainty of outcome and timeline are essential as well.
In his opinion, all value investors are contrarians, but not all contrarians are value investors because value investors look for more information. Value investors not only compare the current price of the securities to its former high, but also to the intrinsic value of the firm (i.e. examine the assets and earning power). Paul D Sonkin was keen to examin broken IPOS, especially when the market condition is favorable. Under favorable market condition, many IPOs will be waiting to debut on the exchange. It is a good opportunities for insider to cash out, for ibankers and brokers to earn money and for managers to raise cash to expand the business at a relatively inexpensive rate. Therefore, the company being taken public will do its utmost to put its best face forward. But usually after being taken public, the IPO price will drop sharply to the value below the intrinsic one. Sonkin would like to do research on these broken IPOs to see if there are any investment opportunities there.
Here is the video about his opinion in small cap.
Reference:
Small Caps Worth A Look. Retrieved from http://www.youtube.com/watch?v=OTM7SEnsbgQ
Top Hedge Fund Managers at Value Investing Congress: Day 1. Retrieved from http://seekingalpha.com/article/203273-top-hedge-fund-managers-at-value-investing-congress-day-1
