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Top Picks for 2010: SPDR Small Cap Emerging (EWX)

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

For his top fund selection for 2010, fund specialist Ron Rowland turns to the SPDR S&P Emerging Markets Small Cap (EWX).

In his All Star Investor, he suggests, "This is the easiest way to gain access to the small cap stocks of all the emerging markets, as it includes stocks from more than 20 countries countries."

Continue reading Top Picks for 2010: SPDR Small Cap Emerging (EWX)

IMAX (IMAX): The big picture

IMAX Corporation (NASDAQ: IMAX) is a recent featured stock from Jim Oberweis, Jr. Here, the money manager and editor of The Oberweis Report explains why his clients own 600,000 shares.

"IMAX specializes in motion picture technologies and large-format film presentations. IMAX designs and manufactures large-format digital and film-based theater systems.

"The company sells or leases such systems to its customers, and converts two-dimensional '2D' and three-dimensional '3D' Hollywood feature films for exhibition on such systems around the world.

Continue reading IMAX (IMAX): The big picture

Vardy's view: Bet on emerging markets small caps

"Our latest pick combines two highly profitable asset classes, small caps and emerging markets," says Nicholas Vardy. In The Global Bull Market Alert, he an emerging markets ETF.

"The SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX) offers you access to small caps in emerging markets that otherwise would be off limits.

"While some of the larger emerging market stocks trade in the United States, these smaller players never will.

"In addition, it's well known that U.S. small caps tend to outperform large caps over the long run. Their small size makes them nimble and quicker to react to changing market conditions.

Continue reading Vardy's view: Bet on emerging markets small caps

Quant picks: A trio of ' best buys'

"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.

In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential."

Here, the analyst looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS).

Continue reading Quant picks: A trio of ' best buys'

Cal-Maine gets a Barron's boost, but is it a value trap?

In the most recent edition of Barron's, fund manager Scott Black touted shares of Cal-Maine Foods (NASDAQ: CALM), the country's largest egg producer, as a stock worth buying. The company generates a return on equity of over 30%, and Black said that at just over 5x earnings, the stock is extraordinarily cheap. When the market revalues Cal-Maine at "just eight times [next year's estimated] earnings, you've got a $38.50 stock." Shares of CALM, which closed Friday at $22.90, were up to $24.86 by Wednesday morning.

I'm familiar with Cal-Maine, having been introduced to the company more than a year ago when it was the focus of a presentation at the Boston College Investment Club. Last summer, I spoke with the company's CFO, Tim Dawson, who gave me a much better understanding of the egg business. Though I came away convinced that Cal-Maine is in very capable hands, I believed then -- as I still do now -- that the stock is not a buy. Here's why.

Continue reading Cal-Maine gets a Barron's boost, but is it a value trap?

Small-cap stock #5: Thoratec (THOR)

Small-cap stock #5: Thoratec (THOR)Thoratec (NASDAQ: THOR), known for its ventricular assist devices (VADs) for patients suffering late-stage heart failure, recently bought Australia's HeartWare. Investors responded positively to this move because it brings new technology to Thoratec and expands the company's already significant market share.

THOR currently has 85% of the U.S. heart pump market and 65% of Europe's, and this new technology could ensure THOR stays on the top of this market for at least the next five to 10 years. The Thoratec-HeartWare partnership has the potential to grow into a multibillion-dollar business, which will translate to big sales and earnings growth.

Continue reading Small-cap stock #5: Thoratec (THOR)

Small-cap stock #4: Ebix (EBIX)

Small-cap stock #4: Ebix (EBIX)Ebix (NASDAQ: EBIX) sells insurance industry software products and services in Asia, Australia, Europe and North America. This company is not your standard IT firm, however. The company's Ebix.com website acts as an online auction house for auto, home, health, life and other types of insurance -- and Ebix gets a fee on each transac­tion. It's cutting-edge applications like this that make Ebix an industry leader.

And the numbers prove it.

Ebix reported its best-ever net income and revenue for the first quarter of 2009. EBIX reported earnings of $8.34 million or 69 cents per share, which is 47% higher than last year's earnings of 47 cents per share. Total revenue rose from $16.64 million to a 33-year high of $20.67 million during the quarter. The company's expenses grew by 17%, but I want to also point out that Ebix's operating margins grew to 40%.

Continue reading Small-cap stock #4: Ebix (EBIX)

Small-cap stock #3: MasTec (MTZ)

Small-cap stock #3: MasTec (MTZ)MasTec (NYSE: MTZ) plays a vital role in literally supporting the backbone of the U.S. economy: infrastructure.

For the last 75 years, MasTechas designed, built, installed, maintained and upgraded the telecommu­nications and utilities infrastructures of the U.S. This company has a hand in everything from telephone lines and high-speed Internet, to satellite and cable television services, to electric, water and natural gas utilities. All you have to do is look outside your window at the nearest telephone pole or glance across the fence at a neighbor's satellite dish to see where MTZ makes its money!

Continue reading Small-cap stock #3: MasTec (MTZ)

Small-cap stock #2: Neutral Tandem (TNDM)

Small-cap stock #2: Neutral Tandem (TNDM)Neutral Tandem (NASDAQ: TNDM) provides third-party interconnection services to competitive telecommunications carriers. In a nutshell, TNDM helps wire-line, wireless and broadband customers talk to each other -- even if they all pay their bills to different companies. Neutral Tandem offers services in more than 60 U.S. metropolitan markets and is a critical part of our nation's communications network. The company's customers include Sprint Nextel, Comcast Cable and AT&T.

Neutral Tandem earned $9 million or 27 cents per share in the first quarter, compared with $4 million or 12 cents per share in the year-ago period. TNDM's earnings beat estimates by four cents for a 17.4% earnings surprise, sending shares up 15.6% in just the week following the announcement!

Continue reading Small-cap stock #2: Neutral Tandem (TNDM)

Small-cap stock #1: Almost Family (AFAM)

Small-cap stock #1: Almost Family (AFAM)Almost Family (NASDAQ: AFAM) is in the home health nursing service business and offers senior citizens in nine states an alternative to spending their days in nursing homes. As the aging Baby Boomer generation looks to keep a level of independence without sacrificing their level of care, Almost Family is a perfect fit.

Almost Family has been buying up local providers to grow its share of the highly fragmented market and increase its margins. Clearly, this strategy is working, as the company's earnings rose 55% to 68 cents per share, compared with 44 cents per share in the first quarter of 2008. What's more, AFAM's revenue increased by a whopping 77% to $69.2 million from $39 million. Analysts on average were expecting earnings of 60 cents per share on revenue of 63 million, so Almost Family posted a 13.3% earnings surprise and a 9.8% sales surprise.

Continue reading Small-cap stock #1: Almost Family (AFAM)

5 small-cap stocks to buy now

Small-cap stocks are a GREAT place to start if you're serious about rebuilding your wealth and securing your financial future.

But what makes small-cap stocks so spectacular?

The bear market stripped analysts from small stocks -- hardly anyone is covering them anymore. This creates wonderful pricing anomalies and gives the individual investor a significant edge.

Continue reading 5 small-cap stocks to buy now

Coinstar (CSTR): Coins to cash ... plus video rentals

"Now could be your chance to pick up Coinstar (NASDAQ: CSTR) at a bargain," Brandon Clay pointing to the firm whose macbhines turn coins into cash. In his Invest with an Edge he states, "We recommend the stock as a recession-resistant, consumer play in a shaky market."

"There are three reasons why we like Constar. First, it's a consumer-savvy play. The company is built on perennial consumer-driven services.

"Their flagship Coinstar machine turns idle change into cash. For every dollar consumers drop into the grate, Coinstar makes $0.089. It may not seem like much, but this simple idea grew CSTR from an idea in 1992, to a $912 million company last year.

Continue reading Coinstar (CSTR): Coins to cash ... plus video rentals

Top Stock Picks '09: Green Mountain (GMCR)

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Investors who can find the diamonds in the rough stand to profit handsomely," says small cap growth stock expert and money manager Jim Oberweis, Jr.

In his The Oberweis Report, he suggests Green Mountain Coffee Roasters (NASDAQ: GMCR) is one stock that fits the bill. As his top pick for 2009, he looks to the maker of specialty coffees and single-cup home brewing systems.

"There is no question that any company whose growth depends on selling goods to the U.S. consumer, especially non-essential goods, would seem risky at the present moment. But stock prices for most retail companies are already down in the dumps and reflect significantly reduced expectations.

"We've been looking for growth companies that won't be as badly affected as many folks believe. Green Mountain Coffee Roasters is one stock that fits the bill.

Continue reading Top Stock Picks '09: Green Mountain (GMCR)

Top Stock Picks '09: Amedisys (AMED)

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Amedisys (NASDAQ: AMED), a provider of home health services," notes Richard Moroney, whose Upside Stocks newsletter uses a quantitative system to select high growth, smaller cap issues.

"The company operates more than 500 locations, focuses on Medicare-eligible patients because of favorable reimbursement rates as well as a large and growing patient base.

"The U.S. Census Bureau estimates that some 8,000 Americans will become Medicare eligible each day beginning in 2011. By 2030, nearly 58 million baby boomers will be eligible for Medicare benefits.

"In 2007, nearly 90% of the company's revenue was derived from Medicare. "Acquisitions and market-share gains should fuel strong results. In addition, Amedisys should benefit from an aging population beset by chronic illnesses.

"The company has developed specialized services that focus on high-cost diseases and chronic conditions. An estimated one-half of the U.S. population will have a chronic condition in 2020, or nearly 160 million people.

Continue reading Top Stock Picks '09: Amedisys (AMED)

Top Stock Picks '09: Fuel Systems (FSYS)

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

For his top idea for 2009, Bob Bogda looks to a play on reducing the world's dependence on fossil fuels. In SmallCapInvestor, the advisor selects Fuel Systems Solutions (NASDAQ: FSYS).

"When it comes to reducing the world's dependence on fossil fuels, there are abstract theories and then there are practical tools.

"Fuel Systems Solutions falls squarely into the latter category, as a growing number of car and bus manufacturers discover how its equipment helps vehicles run more efficiently on cleaner sources of fuel, investors are reaping the benefits.

Continue reading Top Stock Picks '09: Fuel Systems (FSYS)

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DJIA-74.9212,454.83
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Last updated: May 29, 2012: 02:33 AM

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