These micro-cap stocks have the best chance for gain, and your being in early will give you the chance to understand the back and forth motion of the price action, and the style of the promoter.

Being illiquid, they also offer the best chance to go for days without a bid, which means that occasionally some traders will drive the share price down when forced to sell through margin calls or other circumstances.

So there is no question that you need to understand the risk:reward situation and assess it properly with respect to your personal resources and intentions.

I don't have any particular ideas because I don't have the time to follow this segment of the market, but I intend to write about this and ask brokers to send me their "good" ideas. Then I can research and give a list.

I do know a little about junior metal miners and prospectors, and how to evaluate their prospects for the equity market, however, and so starting today with Crystallex and a week or two later with Aurelian, I will attempt to look under the covers and give you my insights.

This particular work will be done to introduce some corporate finance and independent research service work I intend to get into on a professional basis, along with a colleague who is professionally known for his expertise in this area. He's the one who will travel to the remote properties, and run the economic models. I will do the easy stuff. :-)

In any event a reader from Nanaimo BC asked me today if I would provide an objectively prepared list, and some insights, for small Canadian stocks that I would call legitimate "special situations", so the call goes out to Canadian brokerage reps who have some ideas, including positions, in some of these. I'll make the final call after I dig beneath the covers.

And of course, I'd like to hear from securities industry professionals in any country who can do the same, and can express the reasons why they are selling those shares, even through a bear market.

To avoid the unwanted hype, please send me your mail directly (via bcara@billcara.com) and not as a comment to this or other blog articles. The latter will force me to delete stuff, and I'm looking to filter ideas for the benefit of the buy-side here.

Thanks in advance.

bcara@billcara.com