Fact #1: Statmon Technologies has a relatively low market capitalization

A company’s market capitalization tells you the total market value of a company’s outstanding shares at that point in time. To calculate it, simply multiply the share price of a stock by the total number of shares outstanding.

Statmon Technologies currently has a market capitalization under $2 billion which falls into category of "small-cap" stocks. Small-cap stocks have both positive and negative aspects you need to be aware of before investing.

On the negative side, small-cap stocks carry a higher risk profile than larger-capitalized companies. While it is certainly possible for a large company to go bankrupt and for its share price sink to zero (Enron ring a bell?), the odds of a smaller company going caput, are much higher.

As well, small-cap stocks are inherently more volatile. Price swings of 10% or more a day are normal. Therefore, it is best to only invest in small-cap companies if you have a high risk tolerance and can stomach large, quick movements in the share price.

That being said, there is one big advantage small-cap companies have over their larger-sized counterparts. That’s potential upside.

Statistically it is much easier for a smaller company to multiply in value than it is for a larger company. It is not uncommon to see small-cap shares jump 2... 5... even 10-fold (or more).

Therefore, the returns on small-cap stocks such as Statmon Technologies can be staggering.

Fact #2: Statmon Technologies has a relatively low number of shares outstanding

Companies with a low number of shares outstanding are advantageous because shareholder value has not been diluted.

Also, companies with low outstanding shares are often more explosive relative to companies with a large number of shares in the marketplace. This is because a low number of shares outstanding means a tighter float and, consequently, a smaller marketplace for a stock.

Since share prices are determined by supply and demand, a sudden increase in buying will likely overwhelm the number of sellers and result in an upward price surge.

Fact #3: Statmon Technologies is still “under the radar” of Wall Street

A sound strategy for making money in the markets is to buy a rock-solid company while it’s still "under the radar" of Wall Street.

By getting in before anyone else knows about the stock, you put yourself in a position to ride the stock higher as other investors discover the company’s potential and bid up the share price.

Because Statmon Technologies is a small-cap company, the stock is not yet known to the vast majority of Wall Street’s big money players. However, as Statmon Technologies develops its business and increases marketing efforts, it could attract a larger following from Wall Street. And that could send the share price soaring.

Fact #4: The management team running Statmon Technologies is experienced and capable of growing the company

Taking a company public doesn’t guarantee success. A successful public company must have a management team with the experience and expertise to create value for shareholders.

Management must know how to establish and execute an economically viable business plan, build the brand and company image, organize and motivate employees, and do it in as timely and cost-efficient a manner as possible.

The management team running Statmon Technologies is capable of this. Not only is the team experienced, but they are driven to grow the company and create shareholder value.

Fact #5: Statmon Technologies has the right promotion

Being the world’s greatest company means nothing if no one knows about it. A company needs to actively undertake investor relations and publicity campaigns to spread the word about their product or service.

Doing this not only brings exposure to the company, but it will inevitably bring in new investors and add liquidity to the stock – both good things.

An illiquid is stock makes it difficult for investors to enter/exit positions quickly and invariably results in larger bid/ask spreads. Large bid/ask spreads means you aren’t receiving optimal pricing and that's money out of your pocket.

Many stocks that are relatively unknown suffer from a lack of liquidity. However, with investor relations and publicity programs in-place, Statmon Technologies is actively working to ensure a liquid environment for its stock.