Small Cap Stocks

Premium Membership in Envoy Global Research is $275 per year.

Envoy Global Research always publishes summaries of its research for free. However, if you are interested in more in-depth analysis of our equity recommendations, as well as, timely updates, including buy/sell targets, then Membership is for you.

When you become a member of Envoy Global Research you get:

• More detailed research, analysis, and commentary, for all our equity recommendations.
• Breaking coverage of any major corporate events, e.g. M&A news, for any active stocks in Envoy’s portfolio and Quarterly updates on the companies we follow.
• Buy/Sell Alerts: Only members receive our recommendation to buy or sell a particular stock.

No. Envoy Global Research does not recommend frequent trading of stocks. We do NOT offer day trading recommendations. In fact, most of the time, we try to hold our stocks for over a year. This has favorable tax consequences for non-retirement accounts, but more importantly it takes time for stocks to reflect improved fundamentals. That being said, we do not hold onto our stocks forever, and we do turn over the portfolio when stocks reach our price target. In the event that a stock reaches a price target in a more rapid fashion due to unique circumstances, we will of course advise members to take profits.

No. Envoy Global Research does not provide earnings estimates for the companies we follow. Firstly, we do not believe that estimating future earnings is a worthwhile, or profitable, endeavor. Furthermore, we have a multi-year outlook for many our companies, and we do not believe that long-term estimates are even remotely possible under these circumstances. Finally, many of our companies do not have earnings, since they are in a restructuring mode, so providing earnings estimates in these cases is mostly meaningless.

No. We are not perfect. Some of our stock picks do not work out and turn into long-term losses (see below). However, our winners more than make up for our losers. As Bernard Baruch famously said: "If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong."

We do not have an audited track record, so posting specific overall performance metrics would mostly be futile. In addition, past results are no indicator of future performance. That being said, we have done quite well for ourselves and our members.

Instead of overall performance metrics, we will simply highlight some of our more recent successful investments, like:

• Vonage (VG): VG was recommended on 7/27/09 at $0.40. Within 2 years, VG had risen to over $4, an over 1,000% return for Members.
• TravelZoo (TZOO): TZOO was recommended on 1/28/10 at $10.75. Within about a 1 1/2 years, TZOO had risen to nearly $100, a nearly 1,000% return for Members.
• Navisite (NAVI): NAVI was recommended on 6/7/09 at $0.80. Less than 2 years later, NAVI was acquired for $5.50 per share, an over 500% return Members.
• Merge (MRGE): MRGE was recommended on 1/19/2009, at around $0.80. Within 2 years, MRGE was trading at over $4, for a 400% return.
• PowerOne (PWER): PWER was recommended on 9/5/2008 at about $2. Within two years, the stock had risen to $10, for a 400% return.

We are not perfect. Some of our stock picks do not work out and turn into long-term losses. Examples include Britesmile and Corgi, both of which went bankrupt about two years after we recommended them. However, we do our best to inform members of potential major losses before they occur, allowing members to sell losing stocks at manageable losses, as opposed to suffering a complete loss.

Please note, however, that just because a stock has gone done in price after we have recommended it, does not mean it is a losing position. Many times, some of our biggest winners have started out as major losers (e.g. PWER). When investing in small cap value turnarounds, one needs patience and fortitude, as it takes time for a company to improve operations and for the Market to recognize the improved economic situation.

No. Envoy Global Research is not a get rich quick scheme. When investing in small cap value turnarounds, one needs patience and fortitude, as it takes time, sometimes even two years, for a company to improve operations and for the Market to recognize the improved economic situation.

Investing in small cap stocks is very risky and can lead to permanent loss of capital. You need to be prepared to potential near term losses.