This article is part of our Rising Star Portfolios series.
It took me awhile to finally settle on the first small cap for my Rising Star multivitamin portfolio. But that's how it works in real life, right? You have things to do in addition to researching stocks including, occasionally, getting some sleep.
Here's the progression for those of you just tuning in:
- In "Screening for Great Small Caps," I explained the small-cap Foolish 8 and Modified Foolish 8 screens.
- In "5 Small Caps to Juice Your Portfolio," I took a closer look at the five top candidates from the screens.
- Finally, "Rising Star Buy: lululemon athletica" detailed the winner, lululemon
(Nasdaq: LULU) .
Timing is nothing
If you'd bought the day my article came out, you'd be pretty happy because lululemon popped up 9% the next day when management raised guidance. Unfortunately for me, all portfolio purchases are carried out the day after the article is published, so I got in around $73 rather than $67. Oh well, that's also how it works in real life. And true to our Foolish teachings, I'm not going to get too upset by it. (Darn it.)
Not gonna buy 'em
I promised to explain why my other four candidates failed to make the cut. They were all interesting and had their strengths and may perform well in the future, but here's a quick look at why there weren't right for me at this time.
MercadoLibre
Ebix
Puda Coal
ZAGG
Am I wrong to have passed on these companies? Let me know in the comments below, or join us on my Rising Star discussion board.