Watching the global uncertainty unfold is a scary thing. The best homework we at Under the Radar can do is to watch out for any signs of weakness at the annual general meetings (AGMs) that will begin in earnest in a couple of weeks, but have started already.
Aussie small caps are vulnerable because management are so busy with the day to day operational concerns that sometimes they don't see the wood for the trees. That's why the upcoming AGM season is so important, because it will give us an idea of how they have been trading since June 30, which is also co-incidentally when many of the problems we are seeing really reached critical levels.
In writing our tips in the investment newsletters over the coming AGM season we will be paying particular attention to signs that management are wratcheting back expectations for future earnings. During the financial crisis, many companies delayed earnings growth and said it would appear in 2012. Our expectations are that it may be delayed for some companies for another year. You have to watch carefully for the signs.
Will will make sure we watch out for signs when recommending any share tips. That's for sure.