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

Top 5 Small-Cap Stocks to Consider Buying

The good news: Investors need not wait years and instead just a few more quarters to analyze that Phase III data.

If the news is good, then Celsion is likely to pop up on the radar of many biotech investors.

In a best-case scenario, ThermoDox could be selling in Europe and China in the first half of 2013, and in the U.S. in the second half of the year.

Management will provide a progress report when first-quarter results are released in mid-May.

5. Cenveo (CVO)

Buying on the way down. That's what insiders have been doing at this printing company.

The still-slow economy, coupled with a move toward electronic communication, has led to a pullback in demand for printed envelopes, stationary, labels and direct mail materials.

Sales of $1.9 billion in 2011 remain below the $2.1 billion peak seen back in 2008. But even with top-line challenges, Cenveo still throws off ample free cash flow: $65 million in 2011 and a cumulative $350 million during the past five years.

Yet shares remain under pressure because Cenveo carries more than $1 billion in debt.

As a result, the company generated $133 million in operating income in 2011 but had to pay out $116 million of that in interest payments.

So here's the opportunity for investors: Pay close attention to operating income and interest expense when first-quarter results are released in a few weeks, (and perhaps again in the June quarter).

If operating income is starting to pull away from interest expense, then Cenveo may have the makings of a solid turnaround candidate.

Risks to Consider: In a falling market, investors tend to especially shun small-cap stocks, so these companies could fall even further out of favor if the indices pull back sharply.

Action to Take: These companies aren't simply cheap. They've stumbled badly (except for Celsion, which had a too-weak balance sheet).

But in each case, a clear path to upside exists. Quarterly results will tell us whether they are getting back on the right path.
3 of 4

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
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs