Buying House in stock

Three Small-Cap Stocks for a Slugger's Portfolio We've found a few more picks with home-run potential.


A few months ago, we took a look at a few small-cap stock ideas for your portfolio in our article, "Bat Like Babe Ruth." We contended that swatting a few home runs in your portfolio could have a greater impact on your performance than your batting average, and we culled the universe of stocks with market capitalizations under $2 billion to
find potential home-run hitting ideas.


On Feb. 28, we highlighted James River Coal (JRCC Sponsored by:
JRCC), Angiotech Pharmaceuticals (ANPI Sponsored by: ANPI), and Cheniere Energy (LNG Sponsored by: LNG) as three stocks that we thought had home run potential. Two of these three stocks have produced spectacular performance since then, with James River and Cheniere rising 64.6, respectively, through May 9. The third stock, Angiotech, increased just 0.9, easily outperforming the Russell 2000 and the S&P 500, which finished up 5.6, respectively.


However, it is important to note that we are looking back on a very short time horizon of just over two months. Small-cap stocks tend to be volatile, and we wouldn't be surprised to see significant fluctuations in the prices of these stocks. We could still end up striking out with one or more of these stocks (our first three recommendations all have above average risk ratings), but a substantial rise in just one could very well lead to superior
investment returns. We continue to see further upside in all three stocks, but would note that Cheniere is now trading above our "Consider Buying" price.
With that in mind, we'd like to offer up a few more small-cap ideas that could also turn out to be home runs. In contrast to the above- average risk of the stocks we mentioned last time, these three investment ideas are considered average risk, so we require a smaller discount to our fair value estimate before we would consider investing in them.

Author's website are http://www.quicksalefast.com and http://sellhousefast.blogspot.com