Top 5 stocks for your investment portfolio – Small Cap edition

The stock market has rebounded as the DJIA has risen from a low in the beginning of March when it was teetering just below 6500 points. We’ve gained back nearly 3000 points in less than six months. However, some companies have still been struggling, while others are prospering and booming. Below, we’ll take a look at 5 companies with a market capitalization of at least 100 million, but below 1.5 billion (small cap stocks), and who were the best stocks year to date:

1. Kirkland’s (KIRK): This small cap specialty retail home decor store chain has seen their stock price shoot up nearly 500% over the past year. Watch out though, recent earnings reports indicate this stock may have hit it’s peak. If people are going to be stuck in their house, it seems logical they want to look at nice things.

2. China Green Agriculture, Inc (CGA): Everyone knows organics are trendy, so how couldn’t we have seen organic fertilizers as being a smart business; especially considering the heart of their business is China, with a country population of 1.4 billion people. A recent pull back in price makes this 335% gainer an attractive buy once again. Keep in mind though, organic consumption is dropping while consumers cut back on everything possible. This small cap stock is worth looking into further.

3. STEC, Inc. (STEC) has seen their stock price triple over this year, and they don’t look like a simple flash and dash. Flash drives is their core business, and their technologies are gaining them a competitive advantage. Their stock price is up over 200% and with a market cap around two billion, these guys will be around for a while.But remember folks, buy low and sell high. They just might be at their peak.

4. Isramco, Inc. (ISRL) is a natural gas exploring, crude oil pumping money maker. Their small cap company has seen their stock double in these tough times. Watch out though, rumors on the block are these guys are being investigated for securities fraud.

5. American Dairy, Inc. (ADY) operates in China offering unique dairy products to fulfill special dietary needs of a massively diverse population. These guys have been around the block for over 5 years and hit a wall earlier this year, however, they have since seen a steady increase in their share prices over the last month or so. Their recent earnings release was mixed, but all indicators point to this stock showing promise.


Tagged as: , ,