Friday File Part 2: “Microsoft’s $20 Microcap Match?”

What's Alexander Green at the Oxford Club teasing?

By Travis Johnson, Stock Gumshoe, October 8, 2021



Alexander Green has a new teaser pitch out for his Oxford Microcap Trader, one of their “upgrade” newsletters for which they advertise a “retail price” of $10,000 (currently being sold at $1,975, no refunds, hopefully they don’t sneak a $10,000 autorenew in there to blow up your credit limit). The only other pitch we’ve looked at from this service is the Chinese wearables company Zepp (ZEPP), which I considered a “meh” idea at the time, but let’s see what he’s got to pitch this time around.

The general theme of the “presentation” is that Green likes to take an idea that he knows works, a proven business or business model or a big, successful stock, and then look for the “microcap match” to go with it… this is the intro:

“Forget About the Fortune 500! Investors Who Want to Make Big Money in the Markets Are Now Trading…

“Alexander Green’s ‘Microcap Matches’

“These Unknown, Low-Priced Stocks Have Grown as Much as 105 Times Faster Than Fortune 500 Companies.”

And then blah blah blah, these are a bunch of small stocks that grew much faster than the big stocks in their industry, lots of shiny graphs with big numbers… and we finally get to the part where he hints at his new specific stock idea, which is what we’re interested in. Here’s a little excerpt:

“This $20 stock – which I’m calling Microsoft’s Microcap Match – checks all the boxes in the first part of my Dream Microcap Checklist.

“And I believe it could grow 1,635% faster than Microsoft in the year ahead.”

That checklist? There are four entries on it, he sums it up here:

Three Consecutive Quarters of Revenue Growth A Maximum of 10 Analysts At Least Two Major Partners A Market With a 10% CAGR 20% Year-Over-Year Revenue Growth Price-to-Book Ratio < 5 100% Institutional Buying Surge

And then goes on to drop the hints as he goes through the checklist… here’s some of that:

“I like companies that’ve boosted their revenues over the last three quarters.

“Well, this company’s done that for the last six quarters.”

And he includes a chart showing the revenue growth for the past six quarters, from something like $85 million in the first quarter of 2020 to almost $120 million in the second quarter of 2021.

He also says that they’ve beaten analyst estimates for five of the ...

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