Behold the power of Barron’s. Or maybe it’s the resilience of the bull market for small caps. Whichever, an article in the May 9 edition of the weekly business/financial noted 10 small cap stocks that trade for less than $5 (or did before this article was published). All have posted sizeable gains since the article was published.
The focus of the article was a submission by a reader who had recorded a list of stocks that had dropped below $10 and virtually been “given up for dead.” Of the list, Barron’s found 10 small cap stocks that were profitable, had good cash flow, were trading for less than $5 and had analyst expectations for growth in earnings for the year ahead.
All are now on the uptick. Perhaps it indeed is due to the power of Barron’s, or maybe it’s the voracious appetite for small cap stocks.
Here they are, with company descriptions attributable to Barron’s and reporter Dimitra DeFotis:
Canton, MA-based Casual Male Retail Group (Nasdaq:CMRG, http://www.casualmalexl.com/) “sells big and tall men’s shoes and clothing.” Barron’s listed the stock price $4.06; by mid-day May 10 it was trading for $4.19. Market cap is $197 million.
Ladson, SC-based Force Protection Inc (Nasdaq: FRPT, http://www.forceprotection.net/) is “an armored vehicle maker.” Barron’s listed its stock price at $4.88, by mid-day May 10 it was $5.15. Market cap is $366 million.
Miami, FL-based The Hackett Group (Nasdaq:HCKT, (http://www.thehackettgroup.com/) a consultant group that identifies best practices for companies in the U.S., Europe and Asia. Stock price in Barron’s was $3.81; by mid-day May 10 it was $4.46. Market cap is $183 million.
Taunton, MA-based Kopin Corp. (Nasdaq:KOPN, http://www.kopin.com/) is a chip maker developing hands-free computing applications. Stock price in Barron’s was $4.45; by mid-day May 10 it was $4.80. Market cap is $310 million.
Emeryville, CA-based Leapfrog Technologies (NYSE: LF, http://www.leapfrog.com/) “makes educational electronic games for kids.” Barron’s had its price at $4.21 a share. By mid-day May 10 it was trading for $4.47. Market cap is $291 million.
Dallas-based Tuesday Morning Corp. (Nasdaq:TUES, http://www.tuesdaymorning.com/) is a “seller of closeout upscale home goods.” Barron’s listed it at $4.89 a share; by mid-day May 10 it was $5.11. Market cap is $218 million.
Aurora, IL-based Westell Technologies (Nasdaq:WSTL, http://www.westell.com/) “sells broadband products like routers as well as telecom equipment and services.” Barron’s price was $3.57; by mid-day May 10 it was $3.73. Market cap is $257 million.
Foothill Ranch, CA-based The Wet Seal, Inc. (Nasdaq:WTSLA, http://www.wetseal.com/)”sells clothes for young women.” Barron’s price was $4.40; by mid-day May 10 it was trading at $4.74. Market cap is $477 million.
Dallas-based Zix Corporation (Nasdaq:ZIXI, http://www.zixcorp.com/) “sells software that enables e-mail encryption and electronic-medical prescriptions to business and government.” Barron’s price was $3.12, by mid-day May 10 it traded at $3.45. Market cap is $230 million.
Sunnyvale, CA-based 8X8 (Nasdaq:EGHT, http://www.8×8.com/) “helps small businesses cut costs with Internet-based phone services.” Barron’s listed its stock at $2.96; by mid-day May 10 it was trading for $3.14. Market cap is $196 million.