5 Small-Cap Stocks on Firehttp://www.fool.com/investing/small-cap/2011/01/31/5-small-cap-stocks-on-fire.aspx Dan Dzombak
January 31, 2011
Most investors don't keep tabs on their companies' fundamental value. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.
We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock tracking service. Here are five stocks from my watchlist that have been hot lately.
1. Capstone Turbine (Nasdaq: CPST )
2. Avanir Pharmaceuticals (Nasdaq: AVNR )
Avanir Pharmaceuticals caught my eye after it had risen 72% over the past three months. At the end of October, the company's shares doubled when the FDA approved Nuedexta, the firm's treatment for pseudobulbar affect (PBA). Neudexta has no competition right now as it is the only drug approved to treat PBA. This provides a big opportunity, though not huge, and analysts estimate the drug could attain as much as $500 million annually in sales. However, that would be a huge deal for Avanir, which over the past 12 months had only $3 million in sales. The company is a good candidate for a buyout from a big pharmaceutical looking to build out its portfolio and is definitely one to watch.
3. Power-One (Nasdaq: PWER )
4. Oilsands Quest (NYSE: BQI )