Small Caps Stocks for September

A 21-month run of rock-bottom interest rates have created a perfect environment for corporate bonds — and as bond yields fall, bond prices rise and investors and companies have made out like bandits. This has put so much cash in corporate coffers that cash (as a percentage of S&P 500 market capitalization and excluding financials) has soared from just 3% of market value back in 1999 to more than 12.5% today! This cash is burning a hole in the pockets of many companies, and they are starting to use it to make bids for other companies so they can grab market share and expand on the cheap.

That’s great news for small cap stocks with strong fundamentals, since these are always prime buyout targets. To help you position yourself for big gains this September, here are five top small cap stocks going strong: