A short presentation on my back background, the investment premise for microcaps, and what MicroCapClub is about. The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $300m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas. If you are an experienced micro cap investor, feel free to Apply today.

1. The
Case
For
MicroCaps
By
Ian
Cassel

2. My
Background
• Started
inves8ng
when
I
was
a
teenager.
• Worked
for
a
broker/investment
advisor
full
8me
while
I
aCended
Millersville
University
for
Economics.
Graduated
2003.
• Villanova
University
while
working
on
my
MBA,
Graduated
2005.
• Founded
Ian
Cassel
LLC:
Advised
several
microcap
companies
(2005
–
2008).
• Full
8me
investor
(2009
–
Present)
• Founded
MicroCapClub.com
(2011
–
Present)

3. Investment
Philosophy
• Invest
where
inefficiency
is
greatest
• Exploit
informa8on
advantages
• Perform
original
fundamental
research
• Invest
in
growth
with
definable
catalysts
• Keep
management
teams
on
a
short
leash

4. Small
Cap
Opportunity
Set
• Small
cap
universe
is
8x
the
size
of
large
caps
Large
Investors
are
Cap
(>$5B)
over-­‐exposed
to
600
stocks
large
caps
Mid
Cap
Market
efCiciency
is
greatest
($500M
-­‐
$5B)
1800
stocks
Small
Cap
I
aim
to
exploit
the
many
(<$500M)
inef=iciencies
of
this
under-­‐
5000+
stocks
exposed
segment

5. Small
Cap
Outperformance

6. Small
Cap
Outperformance

7. Market
Correla8ons
• Small
and
Micro
Cap
Equi8es
historically
exhibit
low
correla8on
to
the
S&P
500
• Correla8ons
are
lower
in
downmarket
periods,
implying
capital
preserva8on
opportuni8es
• Adding
Small
and
Micro
Cap
Equity
exposure
may
offer
por_olio
diversifica8on
benefits
to
investor
por_olios

8. Find
The
Trend
• I
try
to
find
emerging
consumer
trends,
financial
trends,
industry
trends.
• Once
I
find
a
trend
I’m
confident
in,
I
find
the
microcap
companies
that
are
the
benefactors
of
that
trend.

9. Find
the
Company…..
Products
or
Services
are
the
best
in
peer
group
Highly
incentivized
management
teams
with
proper
alignment
of
interests
Low
institutional
ownership
(undiscovered
by
larger
investors)
Self-­‐Cinancing
growth
and
clean
capital
structure

10. Due
Diligence
Analyze
public
If
I
can,
try
Conference
filings
the
product
Call
with
or
service
Management
Try
to
speak
to
one
or
more
Company
Visit
customers
(Channel
Checks)

11. MicroCap
Isn’t
Easy

12. What
Is
MicroCapClub?
• Launched
July
2011:
Quality
Members,
Quality
Stocks,
Quality
Content
– Members
Forum:
Exclusive
club
for
experienced
microcap
investors
to
share
and
discuss
ideas.
• Currently
over
140
members
discussing
about
80+
microcap
companies.
– Public
Blog:
Unmet
need
in
the
market
place
to
educate
investors
about
the
MicroCap
space.
• Educa8onal
ar8cles
on
microcaps
• Interviews
with
opinion
leaders