Is Joel Litman’s “Microcap Confidential” Legit?

Looking for a review of Professor Joel Litman’s newsletter, the Microcap Confidential?

A stumbled across this advisory service as I was taking a look at another service offered by Altimeter (the publisher behind it) so I decided to look into it to see what it is all about.

Apparently, Joel shares with his subscribers the best microcap stocks in the market, capable of delivering returns of 500% or more.

In this review, we will take a closer look at how he arrives at those picks as well as find out a bit more about him. Hopefully, you will find this to be useful.

Before I start…

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Is Joel Litman's "Microcap Confidential" Legit? 7

Microcap Confidential Review

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Introduction to Microcap Confidential

As the name implies, this investment research service focuses on micro-cap stocks. Note, although the definition of microcap stocks may vary according to whom you ask, Joel is referring to companies in the US that have a market capitalization of between $50 million and $300 million.

Microcap Confidential

Microcap Confidential bears similarities with the other services offered by Altimetry in that they all utilize an almost identical approach. I have reviewed Hidden Alpha and High Alpha and noted those similarities.

With Microcap Confidential, Joel seeks to recommend microcap stocks whose real earnings and profits are hidden from the mainstream media and Wall Street investors. Therefore, he believes that some of the figures those companies publish, while genuine, are skewed to give certain impressions.

How does he find those companies?

He states that he has a “small army” of analysts and accountant that analyzes the financial statements that are in the public domain (that comply with GAAP). He calls the data in those statements “As reported” figures. They arrange all that data in a uniform format to  spot disparities between “As reported” figures and “the true figures.”

Joel says that they look for 130 discrepancies and that these enable them to project the future of a company in relation to its behavior in the stock market.

Although they start by casting their net far and wide, covering thousands of stocks, they usually narrow their analysis down to a small group of stocks that show the greatest discrepancies.

The final step is to use forensic accounting principles to analyze the earnings numbers to boil it down to a handful of microcap stocks with the highest profit potential.

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Who Is Joel Litman?

Professor Joel Litman helped found both Altimetry and Valens Research. They work like Whitney Tilson’s Empire Financial Research.

He is a professor at Hult International Business School and has taught at institutions like Harvard Business School, Wharton, and University of Chicago Booth, just to mention a few.

Joel is the CEO of Valens research and is also the chief investment strategist who offers advice to individual investors on how to invest and react to macroeconomic events. He sits on the board of COL Financial Group, a leading brokerage firm based in Asia.

Joel Litman is a professional accountant. He received his BS in Accounting from DePaul University and his MBA from Northwestern University (Kellogg Graduate School of Management). He has worked for Deloitte, American Express, Diamond Tech Partners, and Credit Suisse. He is also a member of the CFA Institute.

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What do you get when you join Microcap Confidential?

If you wish to reveal the names of those microcap stocks that can allow you a huge profit gain, then you have to become a member of Microcap Confidential.

If you go with a one-year subscription to Microcap Confidential, you will have access to the following benefits:

  1. Access to Professor Litman’s microcap stock recommendations: Professor Litman claims that the last time he recommended stocks that went on to do wee, if you had followed his propositions, you could have made gains ranging from 301% to 1,566% if not more. Additionally, he and his team will stay in touch with you via email and offer you the latest investment insights and updates from time to time.
  2. Microcap Forensics: How to Make 100% to 500% Gains on the Smallest Companies: This is a research report in which Joel has shared everything that you need to know before you start following this investment strategy. He shares the information you need to predict the best-performing microcap stocks (by gauging their true earning potentials) and the one number that you should consider when you are deciding whether it’s the right time to buy or sell a tiny microcap stock. On top of that, he shows you how to spot the red flags that indicate whether a company is fraudulent or not.
  3. Professor Litman’s Do Not Buy List: This is a list of more than fifty of the worst and most fraudulent companies in America that you should stay away from.
  4.  A Bonus “Crash Course” that Prof. Litman filmed at Harvard Business Club. In the video, he explains how his trading system identifies stocks that can rise 500% or more. He also reveals a startling prediction about a popular company that did an IPO recently. 
  5. Litman’s closed-door, “tell all” chat with a retired Harvard Business School professor. During the tête-à-tête, they discuss what actually happens that causes stocks to either plummet or go up by 1,000% or more.

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How much will you pay to join Microcap Confidential?

One year of Microcap Confidential as of writing this is $3,000 but they point out that this is not the usual fee and they normally charge $5,000.

Remember that you will be automatically billed $3,000 for another year once your first year elapses.

What is the refund policy if you unsubscribe from Microcap Confidential?

The $3,000 subscription fee is non-refundable.

If you are dissatisfied with Microcap Confidential and decide to cancel your subscription, you have to do so within 30 days for them to allow you to switch to another service offered by Altimetry.

Pros of Microcap Confidential

  • Joel and his team objectively scour the market for what their metrics decide are the best microcap stocks.
  • Their trading system is intentional; they rely on forensic accounting.
  • Professor Joel Litman is an expert investment analyst who has many years of experience navigating the markets. 

Cons of Microcap Confidential

  • The subscription fee is relatively high.

Is Microcap Confidential Legit?

Microcap Confidential is a legitimate newsletter.

Joel Litman, the analyst behind it, has had an impressive career in accounting and trading. He has worked for some well-known firms (including some in the big four) and his insights have been featured on some mainstream financial publications like Barron’s. Therefore, if you are going to take investment advice from anyone, Joel seems like a safe bet.

That being said, since his advice is not tailored to your situation, it is best to not hang on to every word he says and do your research. This can sound outlandish considering the subscription fee he charges for the advisory service, but you are better off doing your homework and only investing in assets that suit your investment philosophy and financial situation.

Microcap Confidential Verdict

Microcap Confidential is one of those newsletters that recommend very small companies that may grow big. Joel has a team of analysts and accountants who use forensic accounting principles to unearth companies that are undervalued. Since his method is technical, he has a system called Altimeter that he uses for his other investment advisories (the difference being in the kind of stocks they target).

Since the subscription fee is $3,000 per year (non-refundable) it is not cheap. Therefore, signing up for it is a risk because you are not sure that you will successfully recoup that money off of your investments and the kind of money you forget about once you feel you lost it.

Therefore, you should understand the risks involved in signing up for the service, not to mention the risks that come with investing in volatile microcap stocks.

All in all, if you are aware of the risks and are convinced by Joel’s strategy, you can give it a try. In the end, the decision to join has to be made by you after careful consideration of all the facts.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

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Is Joel Litman's "Microcap Confidential" Legit? 7

David Fortune has been the editor since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.

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