Microcaps are outperforming the S&P

The IWC Microcaps Index is outperforming the S&P for 12 months straight. With this in mind, I've done some research for the past couple of hours. 5 microcap/small cap stocks stand out.

1. ClearSign Technologies – Industrial emitters, revenue acceleration QoQ, exceptional CEO veteran with specific knowledge and skills, strong competitive moat with 900 patents on a cheaper solution to a problem, regulatory pressure tailwind and collaborated with XOM and Honeywell in the past showing exceptional credibility of product and a well connected and capable CEO which cannot be understated.

2. Imperial Metals – Small cap copper-gold miner in British columbia, significant profitability, aggressively paying down debt and available at 7.5x P/E. CEO steady, led company through a crisis 10 years ago. Likely to be acquired by Newmont before long, top quality mine in a geographically passive and peaceful area of the world unlikely to be affected by geopolitics. Copper and gold in high demand for the next decade.

3. Aspen Aerogels – pyro brand for various uses in the EV battery market and insulation in refineries. CEO track record inconsistent, but renewed focus on calmer leadership. Hold 700 patents and positioned with tailwinds from partnerships with OEMs already. Fundamentals riskier but upside potential huge.

4. ADMA Biologics – small cap biotech focused on plasma therapies, perfect balance sheet, electric growth and surging net income. Founder outstanding by hitting big targets with 3.4m shares owned. Any competitors are 7 yrs away and would require big capex. Matter of time before large cap status.

5. NTG Clarity – Software business gaap profitable running a 7.4x PE ratio on 134% dollar retention. Hold Saudi PIF as key customer. Not yet tradeable to much of the global market. CEO track record is outstanding, delivered 19 revenue beats in a row with deep industry specialised knowledge. Very low risk and fast growing business.

All have had fundamentals independently verified by financial times bringing valuable credibility to analysis.