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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
The rise of commission-free brokers, the advent of the gig economy, and the popularity of trading have caused significant distortions into traditional investing paradigms. For one, technical analysis, a trading framework whose validity hung on a loosely held thread in the 1900s, is now among the most popular methods for engaging with the financial markets.
In the current state, it would not be surprising to hear that more people know how to spot a bull flag pattern than how to read a statement of retained earnings. According to some, the buying sprees initiated by GameStop Corp. GME and AMC Entertainment Holdings Inc. AMC have to some degree precipitated a declining knowledge base among investors and a shrinking pool of fundamental research conducted on small- and micro-cap companies.
As this lack of knowledge stretches into the mid-cap terrain, the Markets in Financial Instruments Directive (MiFID II) warns that micro-, small- and midcap companies are losing sell-side coverage, and this transformation is reducing the visibility of such companies to investors. Additionally, according to Water Tower Research, the availability of this sell-side coverage remains open to investors in the top echelons of the financial markets but not to the remaining “99%.” A lack of equity can create an opportunity cost for many investors and introduce an imbalance to the investors’ playing field.
Water Tower Research: Bridging the Gap?
Water Tower Research says through its team of seasoned Wall Street veterans that it aims to bridge the information gap between companies and investors and reach a broader audience than traditional equity research firms. It uses a research platform, proactive products, and digital strategies to provide valuable and consistent information flow to its investment community. All of the content including the research and events are free.
Charlie Phippen, Chief Operating Officer of Water Tower Research commented “small and mid-cap companies are the backbone of our economy, and creating a platform that allows investors to understand the strategies, technologies, and overall impact of these public companies is essential to successful investment strategies. Water Tower Research has the team, expertise, focus, and dedication to own a unique position in the marketplace for providing research and analysis of these companies that face increasing challenges in reaching a broad group of investors.”
Serving as both an analyst and an educator, Water Tower Research attempts to not only provide sell-side coverage but also to educate the community on how to assess the value of a company’s fundamentals.
The company applies its services to a wide range of sectors. Bioeconomy, chemicals and materials technology, climate tech and sustainable investing, communication equipment, consumer, emerging growth and special situations, industrial tech, natural resources, and technology are all areas Water Tower Research focuses on, with potential for more.
The companies within these sectors can vary greatly. Gevo Inc. GEVO, for example, is on a mission to create a fuel-like alternative that produces net-zero greenhouse gas emissions when burned, while Cvent Holding Corp CVT provides an end-to-end platform for virtual events and meetings.
Whatever type of company Water Tower Research covers, it states that its ultimate mission lies in helping companies rebuild the information exchange on which fundamental investment strategies are based.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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