Best Small Cap Stocks For 2013
Small-cap stocks have had a rough year. The Russell 2000 small-cap index is down 3.56% year to date, despite a strong fourth quarter in which the index has recovered 16% so far. Meanwhile, the Russell 1000, which tracks large-cap stocks, has outperformed this year, posting a meek but positive return of 1.57%. Investors may be tempted to abandon small-cap stocks. Not so fast.
Over the long haul, small-cap stocks have been shown to outperform their larger counterparts. In the last ten years, the Russell 2000 has posted a 5.83% annualized return compared to the Russell 1000’s 3.20% annualized return. The S&P 500 has fared even worse, recording average annual returns of 2.75% over the last ten years.
What’s more, small-caps tend to lead the charge out of a recession, performing especially well as the market and the economy enter new periods of expansion. Indeed, after their dismal year, small-cap stocks seem like a low-risk, high-reward proposition.
“I think if you do get a little bit better economic times, you’ll get the benefit of earnings growth plus P/E expansion. And if we don’t get better economic times, I think we’ll stay with the benefits of earnings growth at a time when earnings growth is difficult to find,” says small-cap growth expert Jim Oberweis.
Best Small Cap Stocks For 2013: EZchip Semiconductor Limited (EZCH)
EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library featuring data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.Advisors’ Opinion:
- By Paul At 2011-8-26
Known for designing high-speed networking equipment chips. They had a solid first quarter as revenue gained 38% and now they are sitting on $75 million of cash with no expenses or debt. I believe this is a strong technology bet and I place a target of $30.
Best Small Cap Stocks For 2013: Panera Bread Company (PNRA)
Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.Advisors’ Opinion:
- By Sy_Harding At 2012-1-11
Panera is a great growth story that continues to get better. Panera is thriving in the casual dining arena with fellow Chipotle Mexican Grill (CMG). Quick food that is good and good for you. The company is now moving into cities, which provides another strong revenue stream for the company and continues to build up their image. It has the potential for a lot more stores, and we believe the company is ready to move into new markets. We have a $170 PT on the company, and we see this stock as a growth story about to take off even further in 2012.
Target: $150, $170
- By Fabian At 2011-8-26
Most of you have probably eaten at one of these franchise bakery-cafes. If not I highly recommend it, as for the company itself they are exceptional. Profit soared 50% in the first quarter, operating margins rose several percentage points, and Panera is sitting on $300+ million of cash. Right now it’s at a 30% discount to its peer averages and the stock is very cheap when valued against future earnings. Strong buy expect it to rise to $105.
Best Small Cap Stocks For 2013: Rackspace Hosting Inc (RAX)
Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, and online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.Advisors’ Opinion:
- By Sherry Jim At 2011-8-26
This computing specialist that provides web-based IT systems has soared 60%+ in the past year. With a P/S above 3 and Price to Cash of 10 this stock is poised to continue to soar and outperform it’s peers. $25 in a year is a realistic bet.
- By Hutchinson At 2011-8-26
This computing specialist that provides web-based IT systems has soared 60%+ in the past year. With a P/S above 3 and Price to Cash of 10 this stock is poised to continue to soar and outperform it’s peers. $10 in a year is a realistic bet.
Best Small Cap Stocks For 2013: Sify Technologies Limited (SIFY)
Sify Technologies Limited provides enterprise and consumer Internet services primarily in India. The company offers various corporate network/data services comprising e-commerce and network connectivity solutions, such as end-to-end services network, application, and security services; voice origination and termination services; co-location and managed hosting services; and system integration services for data centre build, hardware distribution, security solutions, and turnkey projects. It also provides application services, including SLEMS and Microsoft Exchange messaging platforms; I-test for online assessment and LiveWire, which enable management of training processes across the organization; document management system for the management of documents electronically; and Forum, a forward supply chain solution. In addition, the company operates e-Ports that offer browsing, chat, email, gaming, utility bill payment, travel ticketing, hotel booking, mobile recharge, Internet telephony, and online share trading services; and portals, which provide news, views, reviews, interactions, and services in the areas of movies, sports, finance, food, videos, astrology, online games, shopping, and travel, as well as offers content offerings and broadband services. Further, it provides infrastructure management services, such as network management, datacenter and helpdesk outsourcing, desktop and storage outsourcing, IT security outsourcing, LAN and WAN outsourcing, database and telecom outsourcing, and application monitoring and management services to automotive, chemical, media, and financial enterprises; and virtualization design, integration, and deployment services for servers, storage, networks, and end user clients. Sify has approximately 1,278 e-Ports in 200 towns and cities; and serves 1,06,000 broadband subscribers through 1500 cable TV Operators. The company, formerly known as Sify Limited, was founded in 1995 and is based in Chennai, India.Advisors’ Opinion:
- By Wyatt Research Staff At 2011-8-30
Shares of SIFY skyrocketed last week after the company announced a new partnership with Saudi telecom. SIFY will provide ICT services to the Middle East’s largest telecom carrier.
Shares of the Indian-based internet and network services have doubled over the past four months.
Best Small Cap Stocks For 2013: InterDigital Inc. (IDCC)
Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.Advisors’ Opinion:
- By SmallCap Investor At 2011-8-30
The wireless technology company said it’s exploring its options, including a possible sale, following last month’s successful auction of Nortel Networks intellectual property which brought in $4.5 billion. IDCC owns about 1,300 patents related to mobile phone technology.
Best Small Cap Stocks For 2013: Petroquest Energy Inc (PQ)
PetroQuest Energy, Inc. operates as an independent oil and gas company. It engages in the acquisition, exploration, development, and operation of oil and gas properties in Oklahoma, Arkansas, and Texas, as well as onshore and in the shallow waters offshore the Gulf Coast Basin. As of December 31, 2009, the company had estimated proved reserves of 1,931 thousand barrels of oil and 167,361 million cubic feet equivalent of natural gas. It owned working interests in 9 net producing oil wells and 277 net producing gas wells. PetroQuest Energy was founded in 1983 and is headquartered in Lafayette, Louisiana.Advisors’ Opinion:
- By SmallCap Investor At 2011-8-30
Shares traded sharply higher after the oil and gas explorer issued an operational update that revealed details of a discovery at its La Cantera site in Louisiana. Raymond James analysts bumped the stock rating to market perform based on the new findings and an improving balance sheet.
Best Small Cap Stocks For 2013: Abraxas Petroleum Corporation (AXAS)
Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, development, exploration, and production of oil and gas in the United States and Canada. Its oil and gas assets are primarily located in the Rocky Mountain, Mid-Continent, Permian Basin, and Gulf Coast regions of the United States, as well as in the province of Alberta, Canada. As of December 31, 2010, the company?s estimated net proved reserves were 26.6 million barrels of oil equivalent. As of the same date, it owned interests in 143,606 net acres; and operated 1,307 wells. The company was founded in 1977 and is based in San Antonio, Texas.Advisors’ Opinion:
- By Guru Focus At 2011-9-20
Former EVP/CFO of Abraxas Petroleum Corp. (AXAS) Chris E Williford sold 100,000 shares on 09/15/2011 at an average price of $3.42. Chris E Williford owns at least 98,974 shares after this. The price of the stock has decreased by 0% since.
Abraxas Petroleum Corporation is an independent energy company engaged primarily in the acquisition, exploration, exploitation and production of crude oil and natural gas. Abraxas Petroleum Corp. has a market cap of $313.9 million; its shares were traded at around $3.42 with and P/S ratio of 5.3.
Abraxas Petroleum Corp recently released its second quarter 2011 results. During this quarter, the company saw revenues of $17.0 million and net income of $8.9 million ($0.10 per share) – compared to $15.0 million and $5.3 million respectively last year. EBITDA was $7.4 million.
- By SmallCap Investor At 2011-8-30
The oil and gas company has far-flung operations across North America, including in the hot Bakken region. Shares have popped 60 percent in the past month, regaining some ground lost earlier this year.
Best Small Cap Stocks For 2013: FuelCell Energy Inc. (FCEL)
FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, breweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.Advisors’ Opinion:
- By SmallCap Investor At 2011-8-30
The developer of stationary fuel cells used by commercial and government customers might be headed for a rebound from a pullback that began this spring – which has left the stock down 39 percent year-to-date.
Best Small Cap Stocks For 2013: Sky-mobi Limited (MOBI)
Sky-mobi Limited engages in the operation of a mobile application store in the People?s Republic of China. It works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with applications and content titles. The users of its Maopao store could browse, download, and purchase a range of applications and content, such as single-player games, mobile music, and books. The company?s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with hardware and operating system configurations. It also operates a mobile social network community, the Maopao Community, where it offers localized mobile social games, as well as applications and content with social network functions to its registered members. The company owns proprietary mobile application technology in the cloud computing, the MRP format, and SDK development environment. As of March 31, 2011, it had entered into cooperation agreements with approximately 523 handset companies to pre-install Maopao. The company was formerly known as Profit Star Limited and changed its name to Sky-Mobi Limited in October 2010. Sky-mobi Limited was incorporated in 2007 and is headquartered in Hangzhou, China.Advisors’ Opinion:
- By Wyatt Research Staff At 2011-8-30
MOBI hit another 52-week high of $12.15 late last week. The stock continues to surge on increasing volume. The latest advance in share price came after Oppenheimer upgraded the stock to “Outperform”.
Last week, the China-based internet portal and gaming provider giant Sohu.com (Nasdaq: SOHU), announced an advertising agreement with MOBI.
Best Small Cap Stocks For 2013: KongZhong Corporation (KONG)
KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People’s Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games consisting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China.Advisors’ Opinion:
- By Louis Navellier At 2011-9-10
Thanks largely to the country’s tremendous economic growth, there’s a new middle class in China. They have more leisure time than ever before, and that means big opportunity for entertainment provider KongZhong Corporation (KONG).
The company provides wireless interactive entertainment, media and community services to mobile phone users, but it also offers interactive entertainment services, including mobile games, pictures, logos, karaoke, electronic books and mobile phone personalization features such as ring tones. The Chinese love their cell phones, and KongZhong provides much of the content that goes on those phones.
Investors certainly haven’t been hesitant to dial up shares of KONG, as the stock is up over 218% in the last 12 months.
I rate KONG an A, making it a strong buy.
- By Wyatt Research Staff At 2011-8-30
As a Chinese ADR, KONG is the leading provider of 2.5G wireless interactive entertainment, media and community services in terms of revenue to customers of company China Mobile. Institutions snatched up shares at an alarming rate with an increase of 26.7% in institutional ownership over the past three months.
A consensus of analysts expect earnings to increase by 16.9% in 2011 and 19.6% in 2012. Company earnings are estimated to increase by 62.1% this year.
- By Wyatt Research At 2011-8-30
The provider of customer care services agreed to a $470 million acquisition offer from OneEquity Partners, an investment unit of JPMorgan Chase.
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