There are many good reasons for researching investment opportunities in a certain geographic area. Today, it's the great state of Michigan. Nestled on two peninsulas between four of the Great Lakes, Michigan is home to Motown, with its rich history in music and automobiles. It's also the fourth-largest high-tech center in the nation; 570,000 tech workers call the Great Lakes State home.

If you happen to live in Lansing or Kalamazoo, you already have a few advantages when it comes to evaluating the local market, such as access to local news sources and the word on the street, and a high probability of being a customer or employee of these companies. And if you're not a local resident, you might still want to know whether the northerly weather matches the business climate -- a hot area could be chock-full of undiscovered treasures on their way to greatness.

Without further ado, here are the largest companies headquartered in the state of Michigan:

Company

Market Cap (millions)

CAPS Rating
(out of 5 stars)

CAPS Bulls

Dow Chemical (NYSE:DOW)

$38,609

***

90%

Stryker (NYSE:SYK)

$22,573

*****

98%

Kellogg (NYSE:K)

$20,080

*

73%

General Motors (NYSE:GM)

$16,731

*

32%

Ford (NYSE:F)

$13,846

*

54%

As you can see, it's not all about cars for graduating Wolverines and Spartans. Dow's plastics and chemicals have attracted far more investor dollars than Ford or GM have, and orthopedic specialist Stryker is larger on that measure as well.

But the economic impact of the carmakers can't be overstated. Ford and GM each employ more than 300,000 people today, mostly in the Detroit area. The next four companies on the employee count list have about 300,000 workers combined.

It's also rather obvious that the Motley Fool CAPS community doesn't have much love for most of Michigan's biggest businesses. The problems at Ford and GM are well known, including retirement plan liabilities and market share slipping away to Japanese and Korean rivals. But what about Kellogg? All-star CAPS player sleepyseth explains:

"It is a solid company with good fundamentals and the near term is improving, but it does not deserve a huge P/E and will drop back to where it should be after this little run plays out."

Fair enough. Sometimes, a stock's greatest enemy can be its own phenomenal success. Dow Chemical, on the other hand, is held up as a value play among several CAPS commentators. The biggest knock on that company comes from knihi, who says, "Global prices for chemicals [look] shaky going forward." So that's a pretty positive picture for these two companies after all. Add in medical supplier Stryker, which gets much love for its opportunities in serving the aging baby boomer generation, and three of the top five market caps here look very nice, with a couple of caveats.

Outside the biggest caps, Michigan is teeming with household names, including Domino's Pizza, bookstore chain Borders, and homebuilder Pulte Homes. Unfortunately, all of these companies rate but a single star in CAPS today. You might do better to look at the smaller companies flying under the radar with excellent business prospects. Try high-powered-laser manufacturer Rofin-Sinar Technologies, a current Motley Fool Hidden Gems recommendation and five-star stock. TMFPlatoish1 can tell you why:

"Rofin-Sinar is the best pure play in the laser industry. They have a full line of systems for the complete range of high value-added applications. They are actively exploiting new applications as they become standardized. Their management is conservative, honest, and very focused on improving margins and operating efficiency. A Rip Van Winkle stock -- go to sleep and check back in 10 years."

And outsider companies have started to see value in having a presence in this high-tech hub. Google (NASDAQ:GOOG) is putting up a 1,000-job call and operations center in Ann Arbor within five years, for example. Despite the automotive misfortunes in Detroit, the state as a whole seems to have several bright prospects, centered on the idea of a Technology Central for the Northland. Considering the hot business climate in nearby Minneapolis and the frostbite in South Beach, maybe the market heats up as the air cools down. It's a fun thought, at least.

Do you agree? Disagree? Feel free to weigh in on the Michigan market -- or on any stocks at all, really -- by joining Motley Fool CAPS and blasting away with your ratings and commentary pitches. And if Automation Alley isn't your 'hood, maybe we'll come around where you live the next time.

Further Foolishness:

Dow Chemical is a Motley Fool Income Investor recommendation, and Rofin-Sinar is indeed a Motley Fool Hidden Gems pick. Learn why and find more great investment ideas with a free 30-day trial to either newsletter -- or both.

Fool contributor Anders Bylund holds no position in any of the companies discussed here, but he does eat a lot of S'mores Pop-Tarts, and he feels an affinity for Michigan blue and yellow. Call it maize if you like -- it's still yellow. You can check out Anders' holdings if you like. Foolish disclosure is always red-hot.