DMX Address Understanding of ‘What Investors Are Hoping For’

Understanding what the market is expecting from a company is a key input in DMCX investment process. The company looks for under-appreciated stocks where valuation reflects the markets low expectations for the business. As a result, DMX look to gauge market expectations before investing and look to broker reports, investor discussions, online stock discussions forums and subscription research services to better understand what the market is really expecting from a company.

KEY TAKEAWAYS:

• Start with the stock’s valuation: Viewing a stock’s current market valuation as a great starting point in gauging what the market is expecting from a company looking forward.
• More information required since the smaller companies market is inefficient: One of the great attractions of investing in smaller companies in the ineffective nature of the smaller companies’ market.
• Listen to the loudest opinions and take them with a grain of salt: DMX explains from their experiences, listening to the market voices can add significant value when gauging market expectations.
• Management engagement and communication.
• Use the noise to ultimately ignore the noise: think long term.

Gauging expectations is core to value investors’ psyches since DMX are looking for stocks which are largely ignored and under-appreciated, and thus under-valued. Low expectations is near the top of DMXs’ shopping list of the attributes of high quality, under-valued smaller companies we are looking for. DMX will continue to focus on stocks where expectations are low to our shareholders’ benefit.

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