Jim “Rev Shark” Deporre is done with summer and is leaving losing stocks in the rear-view mirror.
With September percolating, he’s got his eye on a “top ten” list of over-performing small-cap stocks – even as talk of a market correction bubbles to the surface.
“One of the primary questions that many market players have been asking recently is whether small-caps, growth stocks, and speculative names can continue to perform if the indices struggle,” Deporre noted recently on Real Money. “The concern is that the indices will drag down everything when they finally correct.”
While signs of a mild correction have popped up, Deporre said that it’s a stock-pickers market -- and he’s all about helping the active traders out with 10 favorite picks.
“Some of the best-looking stocks on my screens right now are Upstart Holdings (UPST) - Get Upstart Holdings Inc. Report, ZIM Integrated Shipping Services (ZIM) , Beyond Air (XAIR) - Get Beyond Air Inc Report, TaskUs (TASK) , Aurinia Pharmaceuticals (AUPH) - Get Aurinia Pharmaceuticals Inc. Report, VPC Impact Acquisition Holdings VIH, Apollo Endosurgery (APEN) - Get Apollo Endosurgery, Inc. Report, and Aehr Test Systems (AEHR) - Get Aehr Test Systems Report. My Stock of the Week is Urban-Gro (UGRO) , and it’s holding up well.”
One speculative name Deporre us watching is Reservoir Media RSVR. “There’ve been some efforts recently to move small-float deSPACs, and RSVR looks like a probable candidate,” he noted.
Rev Shark advises keeping a sharp eye on the major stock indices – there’s a payoff in doing so.
“We have to keep an eye on the indices, but we need the gap between big-caps that are at highs and many of the secondary stocks that have been in bear markets to close,” he said.
It looks like that process is starting already.