Whats the Risk of Newsletter Syndrome?
The companies that fit our criteria tend to be small (generally under $100 million market cap, and often under $20 million), but they must be large enough to absorb modest buying by the limited number of subscribers we’re allowing into the service. We’re carefully and gradually increasing our subscriber base toward our maximum of 500, and are watching the effect our publication has on the shares of the companies we pick. We don’t want our own buying pressure to drive the price significantly higher. We’ll sneak in, like the Stealth investors we are, and wait for the market to discover the companies, then take our profits. Thus, we’ll try to match the market cap of our discoveries with the buying demand from our relatively small group, and thereby avoid having our subscribers drive the price up, only to find no buyers when they try to sell.
