The Real Secret of Microcap Success | Ep 4

Keir

Alright, in honour of the halfway mark through 2025, I want to talk about the single most important factor I consider when investing in a Canadian microcap stock: the management team.

Keir

Forget the flashy decks, the sexy sector, even the latest assay results.In this world, it’s about the jockey, not just the horse. And in the microcap space — where resources are limited, trust is fragile, and momentum is everything — the people behind the ticker make or break it.

Keir

So today, let’s break down what makes for a great management team, what to avoid, and I’ll even give you an example of one company that, in my opinion, is checking a lot of the right boxes.

Keir

Let’s start with this: If I could only ask one question when looking at a microcap company, it wouldn’t be about the asset or the technology. It’d be: Who’s running the show — and can I trust them with my capital? Because in microcaps, you’re not just buying a business. You’re betting on decision-making under pressure. You’re betting on execution.

Keir

Here are some of the key traits I look for: Balanced Urgency. Great teams move fast—but not recklessly. They understand that momentum keeps shareholders engaged. They never sit idle waiting for the perfect market. They build and communicate progress proactively. Realistic Yet Ambitious Guidance. The best teams underpromise and overdeliver. It’s not just about hitting milestones — it’s about beating them. That’s what gets attention and earns long-term shareholder confidence. Skin in the Game. This one’s non-negotiable. If you’re not buying in the open market or participating in financings, why should I? Alignment matters. Founders and executives with personal stakes tend to make better decisions. Track Record and Domain Experience. Look, microcaps aren’t for tourists. I don’t want my capital funding a learning experience. I want teams who’ve been in the trenches and succeeded—or at the very least, learned hard lessons. Financing Discipline. The good ones know how to raise capital opportunistically—on strong terms, with quality investors, and with excess demand. They treat dilution like it’s toxic—not just a line item. Focus. If you’re running five different companies and promoting them all, I’m out. I want to see laser focus. A team that lives and breathes their company, not moonlighting across several deals. Communication Skills. Boardroom. Booth. Podcast. Doesn’t matter. They can clearly articulate where the company is going and why it matters. Great communicators don’t dance around the tough questions. Clean Governance. I watch for the kinky stuff—backdoor related party deals, RSUs or DSUs handed out like Halloween candy. You shouldn’t be getting rich from issuing yourself free shares. Get rich the same way I do—by owning stock and growing the business. Drama-Free Leadership. If the C-suite is a revolving door or insiders are bailing out as soon as they resign, I’m gone. Continuity matters. So does commitment. Newsflow Discipline. Every news release is a chance to build trust, show traction, and bring in new investors. Good teams know this. They don’t go quiet for months then drop fluff. Crisis Management. It’s not if something will go wrong—it’s when. Watch how teams handle setbacks. Do they own it and pivot? Or do they ghost the market? Respect for All Shareholders. Whether you own 100 shares or 10 million, great management teams are accessible. They don’t hide behind IR firms. They answer the damn phone. Obsessive Ownership Mindset. The best ones? You wonder when they sleep. You see them at the office on weekends. They don’t clock out. They’re borderline psychopathic in how much they care. Strong Team & Delegation. If everything flows through one overworked CEO, that’s a bottleneck. I look for companies that attract talent and build infrastructure to scale. Delegation is a leadership skill, not a weakness.

Keir

Look—no team is perfect. This isn’t about ticking all 14 boxes. But if they’re hitting 10, 11, maybe 12 of these, and they’re nailing the vital ones to you — You might just have a zero-to-tenbagger on your hands.

Keir

Let me give you a real example: Happy Belly Food Group. They trade on the CSE with the ticker HBFG. This is a company that’s quietly—okay, maybe not so quietly anymore — they've gone up over 700% in the past two years. Why? Because they’ve got the right traits: Balanced urgency. They move fast but smart. Ambitious but realistic guidance — and they hit and exceed their stated goals. Skin in the game. Open market buys. Domain experience. These guys know food and franchising inside and out. Financing discipline. They’ve been choosy with capital raises and it’s paid off. Clear communicators. If you’ve seen any of their interviews, they’re not hiding the ball. Newsflow game is on point. Regular, meaningful updates. They treat shareholders like partners. And their leadership? They live it. They seem genuinely obsessed and surrounded by strong support. To me, HBFG is a case study in how strong management, more than anything, drives microcap success. If you are Happy Belly management, don't go and disappoint me now!

Keir

So to wrap this up — The next time someone pitches you the “next big thing” on the TSXV or CSE, ignore the deck for a moment and instead ask: Who’s driving this? Are they obsessed? Are they credible? And are they aligned with me? Because a great management team will find a way to succeed—even if the asset or product needs refining. But a weak team? They’ll find a way to screw up even the best opportunity. So, choose your jockey wisely.

Keir

Thanks for listening. If you found this helpful, you know what to do — subscribe, share, and hit me up with your thoughts. This is Zero to Tenbagger. I’m Keir Reynolds, and I’ll see you tomorrow.