This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Corbett Likes the Midas Touch

Though the past few years have been tough on micro-cap companies, Michael Corbett, portfolio manager of the Perritt Micro Cap Opportunities Fund (PRCGX), sees a brighter outlook for the market's minnows in 2012.

"Valuations have come in and we've had a big multiple contraction within the space. As a result, we think things will improve going forward," says Corbett.

The $315 million fund, which garners 3 stars from Morningstar (MORN), is down 11% over the past 12 months, putting it in the 95% percentile in Morningstar's small blend fund category. Over the past three years, the fund has returned an average of 20.5% annually, outpacing 55% of its Morningstar rivals.

One of Corbett's top stock picks is Ascent Capital Group, Inc. (ASCMA - Get Report), a former media company that has transformed itself into a home security company through the purchase of Monitronics in 2010.

"We bought the stock a little more than a year and a half ago and we are up about 100% so far. I still think there's more room in it," says Corbett.

Corbett also likes another makeover story in CyberOptics (CYBE - Get Report), as a play on the growth smartphone and tablet devices. CyberOptics does inspections for the semi-conductors in these hot products and as the demand for them grows, so will the market cap for CyberOptics, now valued at $53 million, says Corbett.

"This is a company that's transformed itself from operating in a small part of the inspecting business to an area where they can really show huge growth. And they have a tremendous amount of cash to spend on capturing new business," says Corbett.

He also likes Century Casino (CNTY - Get Report), which operates casinos outside of Las Vegas in Colorado, Canada and Poland.

"For a gaming company, Century is completely diversified but completely misunderstood. It has a market cap of only $60 million, with $20 million in excess cash, and management's hungry to buy even more businesses and feed the growth that they have in the world," says Corbett.

Finally, Corbett is a fan of auto-repair chain Midas Inc. (MDS), which he purchased for the fund a few years ago. Unfortunately, the stock has not been doing much since Midas' management has had trouble creating value. However, Corbett expects that to change now that the company's board has hired an investment bank to explore alternatives including a sale.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ASCMA $8.27 0.00%
CNTY $6.38 0.00%
CYBE $8.74 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs