We have had a solid run in the small caps/micros the last number of weeks. A great number of stocks have moved, most of them for good reason. The micros and small caps are leading this time in the cycle instead of following because there is simply more value to be had down here.
Going thru my stocks lists this weekend I am isolating those small caps or micros that have either posted positive earnings, substantial improvment or have strong forward statements. Out of my list of 300 Nasdaq stocks (general lists...I have segmented lists as well that I will not have time to get to this w/e...bio, high tech, semi, about 400 OTC...but my guess is the resiults might be similar)I have checked about every other stock.
That means either I keep very good lists OR this end of the market is outperforming the mid and large cap results wise...I think the latter is the case. I also think we may have seen the easiest of the easy money made already. In addition to that premise market dynamcis are also changing. So where to look now?
One segment of stocks that I have been having very good success with of late are srocks priced in the .30-.40 area all the way down to a penny.
These are stocks that have either cash, a strong book value compared to stock price, actual revenue and sometimes earnings and in some cases improving numbers, promising pr's with solid forward statements etc...
Stocks I do not want to include are the obvious impossible dreams...Over 100m, 200m +++ shares outstanding and not a hope or prayer of ever producing eps. What I am looking for are real companies that have been beaten up, ignored, or those that may be turning around...and have a stock price that is cheap relative to some of the elements set out above. I want to stay away from those stocks where the leverage won't be there....let's say a buck limit but a propensity to look for those priced even at a penny up to around .25-.35.-.40
I will set out a few here as soon as I can get some work done.
If you have some please feel free put them out. And PLEASE.........don't just throw a symbol out. Take the time to help us all out.........give us SOMETHING to grab on to....a rationale, a ratio, a chart, a book value or cash standing, a good looking PR...any basic info you have....whatever.
Let's give this a shot for a while and see if anything good happens. I am reserving the option to set up a portfolio but am not going to do so at this time. SI screws them up anyway. |
