Small cap stocks - will some of them take off?

Besides cleaning up credit reports all day long, I’m also considering gambling on some small cap stocks. I have selected these 4 because I’ve been watching them for a long time. One thing these 4 companies have in common, is very capable management, and I believe they will do well. Your opinions are welcome … Before naming them, I am disclosing that I currently don't own any of those. For your information only. Do your own research and trade responsibly.

Lifeway Foods (LWAY) trading today just over $9 is small, mostly family owned company that produces drinkable yogurt called kefir, farmer cheeses, and other dairy products. Insiders hold 53% of the stock. With only 16.9 million in outstanding shares and 4,4 millions floating, the trading volume is very low and prices are volatile. But the company is managed very well, and faces practically no competition after acquiring its major competitor last year. High profit margins and growing earnings and revenues.

Bebe Stores (BEBE) reported fiscal third-quarter earnings that fell to $12.9 million, or 14 cents a share, from $13.3 million, or 14 cents a share, a year earlier in spite of 16% jump in revenues, to $154.4 million from $132.8 million. The women's apparel company blamed the higher costs and expenses. The stock trades just under $17. The reason I like this company is simple. Its product is geared toward young women, and is very unique, high quality, fashionable and yet affordable. The company suffers through some slumps periodically, but always bounces back beautifully. Just go to one of the stores and look for yourself, how busy it is. In my opinion, the price of around $15 is a nice buying opportunity.

Pan American Silver (PAAS) is probably the strongest silver mining and producing play today. The stock performed very well, going from $15 to 30 in less then 2 years, but with the just announced first quarter profits, and potentially much higher silver prices, some predicting it may hit $45 by the year end. As word of caution, earnings from its mining operations declined and results missed expectations, chiefly because of operating costs. The stock is currently trading at about $28.50, below 52 week high which was $32.46 reached 2 weeks ago.

Monogram Biosciences (MGRM) just announced it lost 1 cent more than the expected. It trades at $1.72 today. This biotechnology company main product are HIV related tests, ranging from drug resistance to examining and evaluating the genetic sequences of a patient, to the ability of a virus to reproduce and infect new cells. Pfizer owns a rather significant chunk.

Fri May 4, 2007 10:05AM | Copyright: www.bad-credit-advisor.com | More in Stocks | Comments (0)

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