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With 90% of microcaps, investor expectations get too high after 2-4 good quarters in a row. The multiple expands from being cheap based on last year to being cheap based on this year, to could be cheap based on 2030 estimates. Value investors sell their stock to growth investors. Growth investors annualize the best quarter in the company history and add 50% per year going forward for 5 years and call it conservative. The excel table says the stock chart should be a smooth escalator ride to heaven. But then the company suffers from growing pains, invests to support growth, last years 50% growth turns into this years 30% growth, and next year's 17%. The stock gets cut in half or more. Growth investors sell to value investors. Time and time again, every year, the pattern persists across hundreds of microcaps.