Academic studies finally back up what I have found in 10 years of investing:
Categories
Archives
- September 2011
- December 2010
- November 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
Blogroll
Interesting info. I’d bet that these little-traded stocks typically have high insider ownership as well which probably contributes to part of the extra return
Here is one stock that fits the pattern of being thinly traded and having high insider ownership: Alloy Steel International (AYSI.OB).
Be careful with foreign bulletin board stocks, Dave. Risky area.
Juan,
One way to minimize risk is to do a lot of research before you invest. That works with foreign bulletin board stocks as well. Aaron has invested in some Canadian bulletin board stocks, partly because he likes that Canada’s economy is benefiting from the bull market in commodities, and Canada is fiscally stable. The same is true of Australia.
Also, one point Aaron has made elsewhere (and others have made as well) is that small companies tend to have relatively simple businesses, and thus are relatively easy to analyze. This is true of Alloy Steel International. Do a little homework on it and see what you think.