TO RESEARCHING A SMALL CAP COMPANY

·      Start with Dividend yields

·      If they are paying dividend then move on

·        If they are not paying dividend then look for ROe and ROCE

·      If ROCE and ROe above 15 then move on

·      If Roe and ROCE below 15 then check it’s CAPEX.

·      If it has done CAPEX then ROCE and Roe will be lower for few years.

     ·      If it doesn’t have CAPEX but low Roe and ROCE then stop there.