I agree with all the points. However, 11. in the case of microcaps it's not a "red flag" per se though. I think more about this like a risk rather than a red flag.
Fair point, you could label it as a risk. Personally, I am not a big fan of companies where this risk is present, hence, I see it as a red flag. Not necessarily because the company is doing something bad, but because I'd rather not be exposed to it.
I agree with all the points. However, 11. in the case of microcaps it's not a "red flag" per se though. I think more about this like a risk rather than a red flag.
Fair point, you could label it as a risk. Personally, I am not a big fan of companies where this risk is present, hence, I see it as a red flag. Not necessarily because the company is doing something bad, but because I'd rather not be exposed to it.
That's right! You can't blame small companies for having client concentration risk