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
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.
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.
Fool analyst Rex Moore reminds you to keep your arms and legs inside the article at all times. Of the companies mentioned here, he owns shares of eBay. MercadoLibre is a Motley Fool Big Short short-sale recommendation. Ebix, lululemon athletica, and MercadoLibre are Motley Fool Rule Breakers recommendations. Motley Fool Alpha has opened a short position on MercadoLibre. Motley Fool Options has recommended a bull call spread position on eBay, which is a Motley Fool Stock Advisor pick. The Fool owns shares of Ebix and lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.