Top Small-CapsCan you rank in order the top 10 small caps that you feel have the most potential over the next 6 months and provide a quick statement on why each is included? Six months is a very short period, and anything can happen within that timeframe, We think investors can achieve better returns with a reasonable risk profile if investors can expand the time horizon to 3-5 years. But as requested here are our small-cap picks along with a thesis for each:
TVK: under-appreciated serial acquirer in the energy field
HPS.A: niche electrical equipment
CLS: a cheap, high-growth AI play
WELL: under-appreciated serial acquirer of healthcare assets
VHI: Saas business with high recurring revenue
TSU: growth, cheap insurance name
KXS: niche software name that is focusing more on profitability
PRL: cheap, high-growth, consumer financing business
GSY: high Return on Equity consumer financing business
DRX: solid growth, potential large contracts, cheap valuation
(5iResearch)