Reply To: What constitutes a quality small cap company?

[Tommy Kristiansen]

Thanks!

I used the Piotroski F-score as a starting point and added gross margins above 40%, as well as good ROE/ROIC – in correlation with growth. Never actually used the Piotroski before, but I think it serves as a decent guideline. Especially in the context of 2020. It needs to be said that I pre-screen on balance sheets beforehand. Not as conservative as I usually am, but enough to avoid the cyclicals slipping through the Piotroski.

I’ll add on the stability-perspective, as I’ve not taken that into account. Some Nordic companies have found themselves on the prelimiary watchlist, albeit quite expensive on most valuation metrics. Makes a good starting point nonetheless. You never know when shit hits the fan.

Great resource btw! Never thought of looking it up in NBIM.