Meet The Editor: Sean Keyes

Sean KeyesMy name is Sean Keyes and I’m the managing editor of The Penny Share Letter, a newsletter dedicated to discovering the most exciting small company investment opportunities.

After graduating from Trinity College Dublin with a BA in Economics and Political Science, and from University College Dublin with an MA in Economics, I moved to London to pursue my interest in investing.

For many years I worked with MoneyWeek, managing their investment newsletters, before I left to join Agora Financial UK Ltd as the head of their small cap franchise. Indeed, as well as The Penny Share Letter, I also write Penny Sleuth, a free daily email about penny share investing.

And it’s through my research into the field that I’ve discovered that promising small companies all share the same FOUR key characteristics…

  • #1: They’re profitable. Here I’m looking at four key measures of profitability: margins, gross profits over assets, free cash flow, return on equity.
  • #2: They’re growing. Here I take something known as the ‘delta’ of the previous numbers for profitability – basically I see how much those numbers have grown over the previous five years.
  • #3: They’re safer. This is shown by the stock’s volatility (which should be smoother for quality companies), and the amount of debt it has (this should be low to ensure the company is more financially stable).
  • #4: They’re run for the shareholders. Here I’m checking how much profit goes to shareholders, and whether the company dilutes existing shareholders by issuing more equity.

Stick to companies with those four characteristics… and cut out the junk.

Do that and I believe you’ll have a massive leg up on the competition.

And that’s exactly what I’m doing for readers of my monthly small company investing newsletter, The Penny Share Letter.

In fact, just recently I’ve joined up with a financial software company to put the idea of cutting out junk stocks into action. We’ve built a model that runs 17 different tests for junk across every small company in the market.

So, I’m basically able to scan the market for junk shares (typically about 90% of companies at the bottom end of the market) and eliminate those small companies from my research.

From the shortlist that’s created, I’m able to identify the ones that meet my four criteria for investing in a small company. Once I’ve pinned down the potential superstars I can advise my Penny Share Letter readers accordingly.

If you’d like to join those small company investors who I’m already advising, then it’s very simple…

Take a 365-day no-obligation trial to The Penny Share Letter and I’ll send you my first superstar picks today.