Crystal Research Associates' Director of Healthcare, David H. Talbot, discusses research trends in small-cap stocks on Seeking Alpha. Article excerpt below; click here for a link to the full text.
"Beyond Wall Street's Panama Canal - New Research Approaches to Empower Both Sides"
There is a Pacific Ocean of micro cap stocks and privately owned companies and an Atlantic Ocean of potential investors and new online accounts, including many savvy former Wall Street clients with high standards and research coverage requirements.
The Panama Canal is currently manned by a skeleton crew --- a relative handful of investment banking firms still active in small cap space. Owing to discount commissions on anemic trading volume, Reg FD compliance, and penny stock rules, Wall Street is no longer motivated to produce extensive coverage of small stocks. Current reports are often comparatively short 10- to 15-page documents stamped out almost like fast food. They often lack the detailed analysis of company fundamentals and research content that today's hands-on investors require.
In contrast to the model Mr. Talbot describes in his article, Crystal Research Associates provides investors with the tools necessary to make a informed investment decisions. The Executive Informational Overviews (40-60 pages) and subsequent updates (8-16 pages) take a "Facts without Fiction" approach to creating comprehensive research coverage on each major aspect of a company's business. This research is freely and easily available to every investor at www.crystalra.com.