Newspapers continue to struggle against a secular decline in circulation and advertising sales, as consumers gravitate toward online news outlets. But the old media often owns valuable broadcasting and Internet assets that don’t achieve a full valuation when they’re wrapped up in newsprint. A recently announced spin-off should unlock significant value for this publishing giant’s shareholders.
Although small-capitalization stocks may not garner as much media attention as popular companies such as Apple (NSDQ: AAPL), we pride ourselves on uncovering profitable investment ideas for our readers--not generating page views. Here are three of our favorite small-cap names.
Consensus opinion is bearish on small-capitalization stocks. But investors who resist the group-think will find a fertile hunting ground for some of the best money-making opportunities in today’s market.
Although a company’s growth prospects and earnings will win out over the long haul, how quarterly results stack up to the market’s expectations will drive stock prices in the near term. The key is distinguishing a company’s temporary hiccups from a bigger malaise.
Baseball Hall of Famer Wee Willie Keeler’s famously advised, “Keep your eye clear and hit ‘em where they ain’t.” This motto has an important corollary for investors: Buy what’s unpopular and hold the stock until the market discovers its value.
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