BICO Group Stock Plummets. Time to Check In.

As the undisputed leader in global indexing, MSCI (MSCI) offers investors a way to slice and dice the global stock universe into buckets. For example, the MSCI ACWI Small Cap Index tracks 6,260 stocks – with an average size of $1.3 billion – across 47 countries. Below you can see how these small-caps stocks outperformed the parent index – MSCI ACWI – which includes stocks of all sizes.

Small-cap stocks outperformed over the last 23 years, but they’re also more volatile because of their size – less volume will move prices more dramatically – and consequently riskier. Retail investors love this volatility when it’s moving in the right direction, just not so much when stocks are falling. Look no further than yesterday’s drop of nearly 30% for BICO Group (BICO.ST) on the back of their 2022 results. (All numbers presented below are in USD unless stated otherwise.)

Catching Up With BICO

Last year’s piece on Checking in With BICO Group Stock looked at BICO’s rapid acquisitions which we identified as a risk stating, “Acquiring companies this aggressively comes with some risks around not being able to sufficiently vet them, or not being able to integrate operations.” Below you ca