When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once.
This approach highlights the necessity of ensuring that any one of these speculative stocks doesn't account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone.
I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last year.
Since then, GSE Systems (NYSE: GVP) has been a dud, dropping 26% as the company's focus on nuclear power-plant training services has fallen out of favor. But the other two picks in that column are faring quite well and appear to still have ample upside. Looking at the reasons why that's the case can also point the way to the pillars of success in micro-cap investing.
Top 10 Sliver Stocks To Watch Right Now: Ross River Minerals Inc (RRM.V)
Ross River Minerals Inc., a junior resource company, engages in the acquisition, exploration, and development of gold and copper-gold properties in Canada and Mexico. Its projects include the Tay-LP property that consists of 413 contiguous mineral claims covering 8,600 hectares and is located in the Yukon Territory, Canada; and the El Pulpo property, which covers approximately 20,000 hectares and is located in Sinaloa State, Mexico. The company is headquartered in Vancouver, Canada.
Top 10 Sliver Stocks To Watch Right Now: MainSource Financial Group Inc.(MSFG)
MainSource Financial Group, Inc. operates as the holding company for MainSource Bank, which is a state-chartered bank that provides a range of financial services in the United States. It involves in accepting demand, savings, money market, and term certificate of deposit accounts; making commercial business, industrial, commercial real estate, agribusiness, farm real estate, construction and development, residential real estate, and consumer loans; renting safe deposit facilities; providing personal and corporate trust services; and providing other corporate services, such as letters of credit and repurchase agreements. The company also sells insurance products. As of December 31, 2010, it operated 80 branch banking offices in Indiana, Illinois, Ohio, and Kentucky. The company was founded in 1906 and is headquartered in Greensburg, Indiana.
Hot Biotech Companies To Invest In Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Sam Collins]
Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.
Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.
Top 10 Sliver Stocks To Watch Right Now: The Children's Place Retail Stores Inc.(PLCE)
The Children's Place Retail Stores, Inc. operates as a children's specialty apparel retailer in North America. It provides apparel, accessories, and shoes for children from newborn to 10 years of age. The company designs, contracts to manufacture, and sells merchandise under The Children's Place brand name. It serves the wardrobe needs of girls and boys, baby girls and boys, and newborn. As of January 28, 2012, the company operated 1,049 The Children's Place stores, including 732 stores located in malls, 140 in strip centers, 135 in outlet centers, and 42 street stores; and an Internet store at childrensplace.com. The Children's Place Retail Stores, Inc. was founded in 1969 and is based in Secaucus, New Jersey.
Top 10 Sliver Stocks To Watch Right Now: Cater Allen Hdg(CTA.L)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It offers backhoe, skid steer, multi-terrain, track-type, and wheel loaders; track, wheel, and mini excavators; select work tools; track-type tractors; motor graders; pipelayers; and related parts for the heavy construction, general construction, mining and quarry, and aggregates markets. The company also provides electric rope and hydraulic shovels, mining trucks, wheel dozers, draglines, electric drive mining trucks, compactors, tunnel boring and underground mining equipment, drills, forestry products, highwall miners, off-highway and articulated trucks, paving products, wheel tractor scrapers, electronics and control systems, and machinery components for mine, quarry, forestry, paving, and tunneling applications. In addition, it offers reciprocating engine powered generator sets; integrated systems for the electric power generation industry; reciprocating engines and integrated systems and solutions for the marine and petroleum industries, and industrial applications; turbines and turbine-related services; and diesel-electric locomotives and components, and other rail-related products and services. Further, the company provides retail financing for its equipment, machinery, and engines, as well as for vehicles, power generation facilities, and marine vessels that incorporate its products; wholesale financing to its dealers and customers; and insurance services. Additionally, it offers component manufacturing, remanufacturing, and logistics services, as well as distributes other companies? products. Caterpillar Inc. markets its products through its sales force, distribution centers, dealers, and distributors. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquart ered in Peoria, Illinois.
Top 10 Sliver Stocks To Watch Right Now: JDS Uniphase Corporation(JDSU)
JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. The company?s Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and networks. Its product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company?s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions that are used by communications equipment providers for telecommunications and enterprise data communications. This segment?s products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and circ ulators, which enable the transmission of video, audio, and text data through fiber-optic cables. It also provides various laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. The company?s Advanced Optical Technologies segment offers optical solutions for security and brand-differentiation applications; and thin film coatings for a range of public and private-sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification. JDS Uniphase Corporation was founded in 1979 and is headquartered in Milpitas, Califo rnia.
Advisors' Opinion:- [By he Fiscal Times]
JDS Uniphase (JDSU +0.85%), like Akamai, is a name that will be familiar to anyone who watched the big technology bubble of the 1990s take shape. It has been a volatile ride ever since, and the company's earnings are flagging, but the telecommunications technology provider, which specializes in optical products, offers rising revenues and adequate cash flow. The company got a boost in December from the decision by Piper Jaffray analyst Troy Jensen to boost his price target to $16 from $12 (the stock now trades at about $14 a share). Jensen's bullishness stems from a conviction that spending by telecom companies is about to take an upward turn, and that JDS Uniphase is likely to be one of the beneficiaries as its customers move to improve their network infrastructures later this year. JDS Uniphase climbed 16.2% in December.
Top 10 Sliver Stocks To Watch Right Now: India Globalization Capital Inc (IGC)
India Globalization Capital, Inc. (IGC) incorporated on April 29, 2005, is a materials and construction company. IGC operates in India and China geographies specializing in the infrastructure sector. The Company offers a suite of services, including the supply of iron ore to customers in China and India, operations and supply of rock aggregate and the civil construction of roads and highways. The Company is focused on building out mining assets, including iron ore, rock aggregate, setting up customer relations, and export hubs for the export of materials to China. IGC operates in India and China geographies specializing in the infrastructure sector. On December 30, 2011, IGC acquired a 95% equity interest in Linxi Hefei Economic and Trade Co. aka Linxi H&F Economic and Trade Co., (PRC Ironman) by acquiring 100% of the equity of H&F Ironman Limited, a Hong Kong company (HK Ironman). In February 2012, the Company acquired Ironman in China. On March 31, 2013, it completed the acquisition of the remaining 23.13% of the TBL.
Mining and trading
The Company�� mining and trading activity centers on the export of iron ore to China and the resale of iron ore to traders in India. The Company�� subsidiary IGC Mining and Trading Private Limited (IGC-IMT), based in Chennai, India, and its subsidiary Ironman are engaged in the iron ore business. Ironman is engaged in the processing and extraction of iron ore from sand and dirt at its beneficiation plants, which converts low-grade ore to high-grade ore through a dry and wet separation process, provides IGC with a platform in China to expand its business, which includes shipping low-grade iron ore, which is available for export in India, to China in order to convert the ore to higher-grade ore before selling it to customers in China.
Quarrying rock aggregate
The Company�� subsidiary, IGC Materials Private Limited (IGC-MPL), is responsible for the Company�� rock aggregate production. The subsidiary has two qua! rrying agreements with two separate partners.
Highway and heavy construction
A number of the Company�� customers are engaged in highway and heavy construction. The Company�� subsidiary, Techni Bharathi, Limited (TBL), a small road building company, is engaged in highway and heavy construction activities.
Construction and maintenance of high temperature plants
The Company, through Sricon, is engaged in the civil engineering, construction and maintenance of high temperature plants. Sricon also builds and maintains high temperature chimneys and kilns.
Top 10 Sliver Stocks To Watch Right Now: NewBridge Bancorp(NBBC)
NewBridge Bancorp operates as a bank holding company for NewBridge Bank that provides various banking products to small to medium-sized businesses and retail clients. It accepts various deposit products, including interest bearing and noninterest bearing demand deposit accounts, certificates of deposits, savings accounts, NOW accounts, and individual retirement accounts. The company also provides a range of lending products comprising construction, commercial, real estate, and consumer loans. In addition, it offers overdraft protection, personal and corporate trust services, safe deposit boxes, online banking, corporate cash management, brokerage, financial planning and asset management, and mortgage production, as well as secured and unsecured loans. As of December 31, 2010, the company operated 31 branch offices, 2 commercial loan production offices, and 2 mortgage loan production offices in the Piedmont Triad region and coastal region of North Carolina, and the Shenando ah Valley region of Virginia; 1 mortgage loan production office in Raleigh, North Carolina; and 1 in Charlotte, North Carolina. NewBridge Bancorp was founded in 1949 and is based in Greensboro, North Carolina.
Top 10 Sliver Stocks To Watch Right Now: THOMAS COOK GROUP PLC ORD EUR0.10(TCG.L)
Thomas Cook Group plc, through its subsidiaries, provides leisure travel services. The company offers its holiday services to approximately 23.6 million customers through its network of travel stores, Websites, and call centers. Its principal brands include the Thomas Cook, Direct Holidays, Neilson, club 18-30, Neckermann, Sentido, �er Tours, Jet tours, aquatour, Ving, Spies, Intair, Fun Sun, BelAirTravel.com, ALBATours, Tj�eborg.fi, and Condor. The company also engages in the airline, hotel, and travel agency activities, as well as offers foreign exchange services. In addition, it provides travel assurance that covers the various risks associated with travel, such as insurance for accidents and thefts; and travel finance that allows customers to finance their travel, such as credit cards. It operates in the United Kingdom, Ireland, India, the Middle East, Europe, and North America. The company was founded in 1841 and is based in London, the United Kingdom.
Top 10 Sliver Stocks To Watch Right Now: Silicon Laboratories Inc.(SLAB)
Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets analog-intensive and mixed-signal integrated circuits (ICs). The company offers broad-based products, which include microcontrollers, clocks and oscillators, wireless transceivers, digital isolators and related products, and human interface sensors and controllers; broadcast products comprising radio receivers and transmitters, and video tuners and demodulators; and access products consisting of embedded modems, subscriber line interface circuits, Voice over IP (VoIP) products, and power over Ethernet devices, as well as DSL analog front end ICs and IRDA devices. It provides ICs for use in various electronic applications, such as portable devices, AM/FM radios, and other consumer electronics, as well as networking, test and measurement, industrial monitoring and control, and customer premises equipment. The company markets its products through direct sales force, and through a networ k of independent sales representatives and distributors in the United States, Taiwan, China, South Korea, Japan, and internationally. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
Advisors' Opinion:- [By Roberto Pedone]
Silicon Laboratories(SLAB) designs and develops analog-intensive, mixed-signal integrated circuits for a range of applications. This stock is trading up 1.6% at $43.47 in recent trading.
Today's Volume: 472,000 shares
Average Volume: 472,517 shares
Volume % Change: 114%
Shares of SLAB are trading higher today despite the fact that a UBS analyst cut his rating on the stock from to neutral from buy, but maintained his price target of $43. One of the reasons cited for the downgrade was valuation, since the stock is trading at a slight premium to its historical average.
From a technical standpoint, SLAB is starting to flirt with some near-term overhead resistance at $43.61. Market players should watch for a breakout trade to trigger if SLAB can manage to sustain a move and close above $43.61 on heavy volume.
Volume is already tracking in extremely strong today, so watch for a close over $43.61. If we get that move soon, then look for SLAB to re-test $45.10 to $45.50. A move above those levels will set this stock up to trend back towards $46 to $47 in the near future.
As of the most recently reported period, Silicon Labs shows up in Coatue Management's portfolio, comprising 2.2% of the total.
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