5 Top Small Cap Stocks for December

Advertisement

computer chip

image text

Tech stocks dominate my list of the top small cap stocks this month. And there’s no surprise why.

According to several recent tech analyst reports, cloud computing and mobile apps are going to see huge growth in 2011, and spending on technology is getting bigger day by day. That means Internet and mobile network plays are the strongest stocks to add to your holdings right now. 

Here are this month’s top small cap stocks to buy: 

 

#1 – Netflix

Netflix (NASDAQ:NFLX)

image text

Netflix, Inc. (NASDAQ: NFLX) has been one of my Emerging Growth top small cap stocks for a while, and I continue to recommend it even after its dramatic run-up. NFLX is up 235% year-to-date and almost 10% in the last 30 days. 

The movie-rental company has been much in the news lately as more Americans (and now Canadians) have begun signing up for the company’s movie services. In the past month, the company has penned a number of deals with major film distributers to deliver content to its subscribers via Internet streaming. The company also recently launched a streaming-only service in the U.S., a service that it debuted in Canada when it launched there a few months ago. 

The company’s rapid ascent to the top of the movie rental industry is leading some analysts to believe that Netflix is now a prime acquisition target for tech behemoths like Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL), since both of these companies have had trouble getting their TV products to take off. The speculation surrounding the merger could be enough to get NFLX into a strong rally. I’ll keep my eye out for any developments, but in the meantime continue buying NFLX stock under $208. 

#2 – Polypore

Polypore (NYSE: PPO)

image text

Polypore International, Inc. (NYSE: PPO) makes polymer-based membranes that are used to construct lithium-ion batteries. Lithium-ion batteries are going to be an ever-growing industry in the coming years as the world becomes more environmentally conscious and looks to alternative sources of energy. From laptops to hybrid cars, lithium is the must-have energy source for high tech gear. 

As a result of its great product line, Polypore had an incredibly strong third quarter. Sales rose 10%, and earnings increased nearly 100% year-over-year. In November, the company announced that it was planning to refinance its longstanding debt via a new bond issue, which is also a bullish sign. PPO stock is up a whopping 249% year-to-date, and hasn’t slowed down with 17% returns in the last 30 days. 

#3 – Acme Packet

Acme Packet (NASDAQ:APKT)

image text

Acme Packet, Inc. (NASDQ: APKT) makes communications equipment that helps Internet-based networks communicate more effectively with each other. It has a suite of products, called session board controllers (SBCs), that connect networks that are operated by Internet service providers.

Recently, the company announced that its SBCs were approved by the federal government for use in the Department of Defense’s Internet networks. This will open up a huge revenue stream to the company as the government is in the midst of an aggressive campaign to upgrade and secure its Internet networks. The growth has already started, too. 

In the third quarter, the company posted very strong financial results — a year-over-year increase in sales of 56% and a huge 140% surge in earnings. Acme Packet is up a stunning 378% in 2010 and is up 26% in the last 30 days. 

#4 – Radcom

Radcom (NASDAQ:RDCM)

image text

First things first: RADCOM Ltd. (NASDAQ: RDCM) is a thinly traded stock, and you’re really taking the tiger by the tail if you buy in. A little volume can go a long way to swinging this stock up or down, but the good news is that for the last year there have been far more good days than bad as RDCM stock is up 461% so far in 201.0 

The stock has entered a bit of a trading range since announcing third-quarter earnings at the end of October. While the figures were fantastic, investors decided to instead lock in their profits. But the pause provides a buying opportunity. Make sure to use a limit order to protect yourself, but consider getting into this surging voice communication and technology stock. 

#5 – Spreadtrum

Spreadtrum (NASDAQ: SPRD)

image text

Spreadtrum Communications, Inc. (NASDAQ: SPRD), a Chinese mobile chipmaker, has been moving sideways lately as investors have begun to feel a bit skeptical about Chinese stocks, but the stock is up 206% year-to-date. 

The company recently launched a three-in-one SIM card that allows mobile users to use three phone numbers on one cellular phone. This is especially popular in emerging markets where consumers are skipping landlines and going straight to mobile phones. With SPRD’s new chip, these same people can have a home phone number, an office phone number and a personal phone number all in one cellular device. This is an excellent play on the growing international mobile market and would be a strong addition to any portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2010/12/top-small-cap-stocks-louis-navellier-small-cap-stocks/.

©2024 InvestorPlace Media, LLC