The quality and quantity of research coverage for small cap companies is likely to decline dramatically in the years ahead, with potentially profound implications for publicly traded companies that are classified as such. Our CEO, Peter Sidoti, has authored the following brief white papers, touching on these issues which we believe you will find informative and instructive.
Like Bricks and Mortar Retailers, Wall Street’s Research Model Must Evolve
A discussion about the factors behind a change in brokerage industry dynamics that may cause a sea-change in the way small cap companies gain access to equity research.
Why Credible Company-Sponsored Research is Needed Today
A discussion about the reasons that credible company sponsored research is needed by both publicly traded companies and the buy-side given the current and foreseeable environment for securities research coverage.
Q. How Do Investors Deal With Conflicts Inherent In Securities Research?
A. They Know Their Provider!
Securities research can be characterized by significant conflicts of interest, whether provided for "free," or sponsored by the issuer. This article suggests that reputable securities firms avoid these conflicts and maintains independence by establishing appropriate policies and protecting their reputations in the investment community at all costs.
MIFID II – A Game Changer
Securities Research Coverage of US Small and Microcaps Likely to Decline Dramatically Over the Next 3 Years
A discussion about how MiFid II, now effective in the EU, is likely to have a profound and adverse impact for US publicly traded firms as the impact of the regulation is felt stateside.
The Buy Side's Latest “Best Idea:”
Invest in Small-Cap Company Sponsored Research
The buy-side is increasingly encouraging publicly traded firms without adequate research coverage to adopt the company-sponsored model.
Small CAP’s Most Valuable “Black Friday” Bargain
Company Sponsored Research
A discussion of why the cost of company sponsored research should be deemed a bargain in relation to the potential benefits to be derived.