Few investment bank research departments cover small cap and micro cap companies unless they have an existing corporate finance relationship or coverage in a specific industry segment. This has resulted in literally thousands of “orphaned” stocks currently trading in U.S. markets, with no coverage and/or and little investor awareness.  One quip on Wall Street is that many of these stocks “trade by appointment.”

Unfortunately, such limited visibility hampers companies’ abilities to enhance the value of their firms via financings, M&A, or other transactions. Existing shareholders have access to limited information on company progress and potential investors may never find out about a Firm’s exciting prospects, and therefore never invest in a potentially undervalued stock. 

Interestingly, even those middle market investment banks that do cover these firms on a research basis recommend that their clients seek out our Firm to engage in research production and distribution, due to our extensive reach and history of success. As a result, Goldman Small Cap Research seeks to release the handcuffs on these firms and inform small cap investors about underfollowed, and often undervalued stocks through the production of  research reports, updates, alerts, snapshots, and blogs.

Here is a link to a recently updated white paper entitled The Case for Sponsored Research which highlights our model and the success of engaging in a coordinated outreach effort with sponsored research as the catalyst

 The Case for Sponsored Research [1]