The following video is part of our "Motley Fool Conversations" series, in which John Reeves, analyst, and David Meier, advisor, Million Dollar Portfolio, discuss topics around the investing world.

Dave and John discuss small-cap stock ideas. Last year wasn't great for small caps, but Dave thinks 2012 is more promising. Dave shares his approach for finding great small caps and then identifies three outstanding ideas.

David Meier and John Reeves have no positions in the stocks mentioned above. The Motley Fool owns shares of InvenSense. Motley Fool newsletter services have recommended buying shares of Ancestry.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.