Small Cap Stocks

Small-cap stocks were the winners last year, advancing 25.28%, which was not a big surprise, as small companies generally perform better as the economy recovers from a recession. The small-cap Russell 2000 had been down over 26%, but with the stock market rally over since the beginning of…

We are at the mid-point of the year. The year started with a bang, but reversed course in May and early June, with stocks trending down on rising global risk. At the mid-year, the key indices are up between four and seven percent in the first half, with…

Small-cap stocks were the winners last year, which is not a big surprise, as small companies tend to perform better when the economy’s recovering from a recession. This is a fact. So far this year, the small-cap Russell 2000 is lagging early on with a 3.83% gain as…

One very good trend that I’m seeing this earnings season is a strong resurgence in business conditions among small-cap technology companies. This strength is occurring in the semiconductor industry as well as in the networking and telecommunication sectors. It’s a good sign for the domestic economy and business…

At this juncture, the market is holding, but will likely face some selling pressure as it edges higher. At this stage, this continues not to be a "buy and hold" market, but success will largely depend on stock-picking and not just randomly buying stocks after the market declines.…

Look for Your Opportunity to Get Back on the Money Horse — by George Leong, B. Comm. With optimism towards the economy rising, we have seen buying return to the stock markets and specifically the growth areas of technology and small companies. The small-cap Russell 2000 has rebounded,…

There really is no good news that will motivate the current stock market. Investor sentiment is so weak that the market's trading is now based on degrees of bad news, not whether there's any hope in a particular story. One thing that I always worry about is the…

Gross domestic product (GDP) growth in the first quarter was a dismal 0.6%, but there is some optimism for averting a recession, as GDP growth for the second quarter is estimated at 1.2%, according to the Federated Macroeconomic Committee. If this should pan out, it could give stocks…

Given the performance of the main stock market averages, I guess we can assume that the credit crunch is over. Of course, there is the question of just about everything else in the economy, not to mention the real estate market. Oh, I forgot about record oil prices.…

The bears are out in full force, but some oversold buying emerged on Monday as stock indices surged. As we approach the end of January, the selling continues to be focused on the technology sector, as the NASDAQ is down about 12%, while the small-cap growth sector, represented…

After quite a lull, I'm beginning to see a lot more exciting small- cap companies that are attractive in this market. If we get a strong reversal in stock prices, these high-growth/high-risk stocks should benefit the most. Remember Shengdatech, Inc. (NASDAQ/SDTH)? I like this small company, but it's…

Bulls are scrambling for cover as the bears have had their way over the last week to July 27, with the blue-chip DOW giving up 734 points, or 5.24%, following a failed attempt to hold above the 14,000 achieved on July 16. With the selling, the DOW has…

This past weekend was my turn to throw a party for a select group of our lifelong friends. We get together at least once a month for a "cup of conversation," as my father used to say. The group is an eclectic collection of professions, interests, and hobbies.…

A company that I used to write about extensively is Fuel-Tech Inc. (NASDAQ/FTEK). If there ever was a poster company for the alternative energy investment theme, this small company would be near the top. Fuel-Tech doesn't operate in the energy production business. It's in the business of cleaning…

I hope you are not listening to everything you hear on TV or read in the papers. If you read through the business sections, there is at least one horror story about a small cap "gone bad" every month. Of course, small caps cannot go bad -- although…

The size of a company's trading volume matters, not the size of its market cap! As most Profit Confidential readers already know, for the most part, Lombardi Financial favors small-caps over large- caps. Why? Well, when it comes to small-caps, it's all about having room for growth. However,…

It's very exciting to discover and follow a small company that's achieving great business success. Small- and micro-cap companies are where true entrepreneurialism shines. One company that I like to mention a lot in this column, LJ International (NASDAQ/JADE) is getting a lot of favorable press these days.…

After this week's "show" that large-cap markets have put us through, it might be a good idea to remind our Profit Confidential readers why the editors at Lombardi Financial generally prefer small caps in the long run. For starters, one confirmation comes from the statistical source, Ibbotson Associates,…

Well, according to most Lombardi Financial editors, that distinctive edge that small-cap investors have would be liquidity, or rather, the lack thereof. Please don't think that we have lost our collective marbles. There is logic to our madness. On any given day, the so-called "smart money" or big…

When it comes right down to it, business is all about making progress. Some progress is always better than no progress, and major progress is what makes investors enthusiastic about a stock. One particular company that I've written about at length in this column is China's LJ International…