In the spirit of the Winter Olympics taking place in Torino, Italy, The Motley Fool is pitting companies against one another. The writers will outline why their company is the best, and our very own panel of judges will decide the winner after a period of deliberation. Today, we award the next gold medal for the Best Small Cap. Stay tuned for more!
Like a snowball rolling down a steep hill in Torino, small things can grow in a hurry. Investing in small companies may be risky, but it's also where some of the greatest returns start. That brings us to our latest challenge, in which five candidates for the Best Small Cap medal hurtled through the fiscal bobsled run this week.
All five seem worthy. FlamelTechnologies (NASDAQ:FLML) is making inroads in drug delivery. iRobot (NASDAQ:IRBT) is revolutionizing the living room and the battlefield with its consumer and military robots. Quality Systems (NASDAQ:QSII) has been a multibagger since the health-care facility software specialist was given the newsletter nod. Blackboard (NASDAQ:BBBB) is making classrooms smarter. Blue Nile (NASDAQ:NILE) is demystifying the engagement experience by arming prospective grooms with knowledge and rings.
Where would the judges land? A long-term chart would have handed Quality Systems the honors, but the stock -- like iRobot -- had been crushed after its latest quarterly report. Flamel and Blackboard were trading closer to their highs. But there was chatter in the back.
It grew louder.
"They like it."
"They?"
"David and Tom Gardner. They both like it."
How can that be? The Gardner brothers never seem to agree on much, especially when it comes to investing. They relish being pitted against one another every month in the Stock Advisor newsletter service. David fancies high-octane growth stocks with great stories to tell, while Tom finds value in undiscovered gems running great businesses.
"They both like Blue Nile?"
"That's what I'm saying!"
David singled out Blue Nile to his Rule Breakers subscribers. Then Tom recommended the shares to members of his Hidden Gems research service.
It wouldn't be the first time that Blue Nile got two people with opposing views to see eye to eye. The online retailer has hooked up tens of thousands of altar-bound couples with its high-end engagement rings.
In 2005, Blue Nile saw its profits soar 32% higher on a 20% uptick in sales. And you know what? If you line up five of Blue Nile's diamond engagement rings just right, you can make a pretty neat replica of the five-ring Olympic logo.
They like it. You may, too, now that the purveyor of bling has some new bling of its own.
Flamel and Blackboard are Hidden Gems picks, Quality Systems is a Stock Advisor pick, and iRobot just got the nod from Rule Breakers. Whether you're a sucker for small caps or demand dynamic dividends, we've got Foolish newsletters to fit your style. Try them free for 30 days.
Longtime Fool contributor Rick Munarriz wonders when his fine hometown of Miami will host the Winter Games. Never? He was afraid of that. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
