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- SMH Market & Liquidity Services, an affiliate of SMH Capital, is designed for small cap companies seeking to expand their investor exposure and market depth and breadth.
- Facing the venerable liquidity “black hole,” most small cap companies today do not have the kind of attention from Wall Street that has historically financed emerging, high-growth companies.
- By taking on only high-quality, high-growth companies under our MLS service, we intend to become the “go-to” name for information and investment ideas for the small-cap and micro-cap market.
- To be successful as a public company, it is imperative to orient the corporate philosophy and begin to treat the stock as a product with its own needs, customers and requirements.
- Through our affiliate SMH Capital, we are able to leverage the full resources of this fast growing investment banking firm on behalf of our clients, which truly offers a unique and differentiated service.
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- Despite having strong fundamentals, illiquidity can act as a gatekeeper to capital even for the most promising small companies.
- Public markets are driven by trading liquidity. Companies with little or no trading activity cannot attract institutional-investor interest
- The lack of informational liquidity is the other part of the problem. About 53% of all public companies have market capitalization of less than $125 million and 83% of those lack any research coverage. During the last five years, more than 700 companies have lost research coverage as Wall Street has slowly abandoned small cap companies
- Institutional investors consider illiquidity as one of the primary risks involved in investing in a small cap stock.
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