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Question
what will be the procedure for choosing good small cap stocks for future investment?

Answer
Your question could be answered with a book!  Let me try to give you a few brief suggestions.  Small growth companies trade very expensively - don't pay so much attention to the valuation but rather focus on the growth potential and the quality of management.  Small value companies trade very cheaply.  Make sure that the balance sheet is strong and look for high insider ownership when buying underperforming small stocks.  A good approach would be to find some from both of these categories.

Small Cap Stocks

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Alan Brochstein, CFA

Expertise

I can answer all types of questions about stocks , especially those that have a market cap in excess of $100mm.

Experience

I was a portfolio manager/analyst at a firm that invested in companies with market capitalizations primarily between $1 billion and $15 billion from 2000-2006. I currently provide research and consulting to institutional investors and manage the highly successful Invest By Model model portfolios for individuals to replicate in their own accounts (www.investbymodel.com).

Organizations
CFA Institute

Publications
http://seekingalpha.com/author/alan-brochstein http://ab.typepad.com/ http://ab.typepad.com/my_own_analyst http://ab.typepad.com/invest_by_model

Education/Credentials
B.A. in Economics and Math from Northwestern University Chartered Financial Analyst

Past/Present Clients
I consult to 4 investment management firms that manage from $50mm to several billion dollars.

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