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Archive for the ‘Small Cap Thoughts’ Category

Edward Dostillio submits:

For the Seeking Alpha readers that consider themselves value investors, I suggest you take a look at a microcap company named Perceptron Incorporated, ticker symbol (PRCP).

Perceptron was recently named as one of the 150 “Best and Brightest” innovative leaders for 2011 and a “Company to Watch” by MDB Capital Group, LLC. This recognition is given to those technology leaders ranking in the 90th percentile or above among 1,500 companies with U.S. patents as rated by PatentVest®, MDB’s proprietary, intellectual property (IP), business intelligence database. According to MDB, companies on last year’s “Best and Brightest” list outperformed the S&P Small Cap 600 Index by 1.4 to 1 and the S&P 500 Index by 2.8 to 1.

To get a better feel for exactly what Perceptron does, the link to it’s corporate website is below. Pay close attention to theWhat’s Newsection at the right of the website. There you

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Ian Wyatt submits:

The rationale for investing in Israeli tech stocks is simple: It is the most innovative high-tech nation in the world. Last week, I noted the reasons why Israel stands above all other nations when it comes to the high-tech industry. Now, as promised, I want to give you the name of one of my favorite emerging stocks in the high-tech world of “The New Silicon Valley.”

As I mentioned several times over the past month, every portfolio should include dividend-paying stocks as part of a diversification strategy. So when I came across a microcap Israeli tech stock with a high-yield dividend of 9.7 percent, I was compelled to dig further into the company.

Most investors associate dividend paying stocks with blue-chip value companies with moderate growth and high-cash flow. But small cap stocks with large dividends also have the ability to deliver high-yield income. The benefit of buying small cap

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XenoPort: Waiting for the Post-Approval Dust to Settle

Posted by admin On April - 8 - 2011

Bert Wilkison submits:

It was announced during the after hours trading session on 04/06/11 that GlaxoSmithKline (GSK) and XenoPort, Inc. (XNPT) received FDA approval for their restless legs syndrome [RLS] product, Horizant (.pdf), after having initially been issued a complete response letter [CRL] for the compound in February of last year.

The company’s stock opened the following morning at $11.11 and spiked as high as $11.42 before closing the day at $9.96, up 56% from its previous close of $6.38.

click to enlarge

Institutional ownership of Xenoport’s stock is remarkably high, accounting for over 90% of the float, while the reported short interest as of 03/15/11 was just 815,112 shares. This seems to be a clear indication that there was little doubt Horizant would be approved this time around.

With just 35.26M shares outstanding and over 26M shares changing hands on 03/07/11, it seems likely that some long-term holders partook in a well

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My Flexible Mini-Micro Stock Selection Model

Posted by admin On April - 8 - 2011

I love small stocks, the smaller the better; small-caps, micro-caps and especially mini-micros, a term I’m using for stocks priced at single-digit levels. This doesn’t mean I’ll buy based solely on a single-digit stock price. Due diligence is always necessary and I’ll discuss that below. But I prefer to hunt and analyze in the lower echelons of the market’s size hierarchy, away from the big well-known issues whose prices are heavily influenced by name recognition, popularity, etc. The lower you go, the more likely it is that you will be able to succeed with garden-variety fundamental analysis, the things you read about in web tutorials, how-to books, seminars, etc.

Here are the two key investment drivers that benefit min-micros.

  1. Very Small Market Capitalizations: There are times when S&P 500 stocks or a broader group of big-caps will lead the market, but over longer time periods, small-caps tend to outperform. This

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Robert Winslow: Potash Stocks Grow With Agriculture Boom

Posted by admin On April - 7 - 2011

The Energy Report submits:

Planet Earth is in the midst of a food bull market. Wellington West Capital Markets Managing Director Robert Winslow follows small-cap agricultural stocks that can give investors both diversification and leverage to achieve double-digit percentage growth. In this exclusive interview with The Energy Report, Robert shares some small-cap names where investors can plant capital and reap vigorous rewards.

The Energy Report: We know that a growing population is a long-term driver of fertilizer, but what has driven the potash market so dramatically higher over the last six months?

Robert Winslow: Well, it’s interesting and it’s pretty simple. The key driver for all these Ag equities is rising grain prices—whether it’s potash, phosphate, agricultural equipment manufacturers or any companies in the Ag space. These equities generally benefit when grain prices are rising.

It’s a function of farm income—the grain complex drives farm income, which drives farm expenditures. We called the bottom

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