How many times as investors have we purchased shares of small cap growth stocks priced-off anticipated results hyped by investment bankers, analyst calls and portfolio managers' picks in the media, then the same stock misses targets set from the high expectations leading to disappointment, under-performance and share price collapse?

Why pay up for the hype? Buy small cap growth stock when its valuation is low, which allows the Company to generate positive surprises and exceed on lower expectations to outperform.

I recommend investing in undervalued small cap companies that are fundamentally strong but still trade at a big discount due to their illiquidity and lack of analyst coverage.

Most small cap stocks which are undervalued are less well known because they are currently misunderstood, require no capital raises, operate in a temporarily out-of-favour industry or are in a turnaround mode.

Purchasing small cap stocks on a value basis does require sound financial analysis of the balance sheet and cash flow. It also requires business acumen for determining investment opportunities that could realize shareholding value–enhancing events such as a special dividend, accretive acquisition or outright sale of a company at a premium to the stock price.

My goal for Investorfile's blog is to seek the undervalued small cap growth company before it gets recognized by other investors to drive the stock's price to fair value. Conversely, I will avoid overvalued growth stock which eventually lose their lustre and revert back down to fair value.

Better yet, I encourage the investment bankers, analysts and the media to drive up valuations on my small cap value plays to unreasonable levels to profit from the hype.