The Best Small-Cap Stock to Own Now

Limited Time Offer: The Best Small-Cap Stock to Own Now

"It isn't as important to buy as cheap as possible as it is to buy at the right time."

~ Jesse Livermore, the most successful stock trader who ever lived

Simply sign up to receive the FREE Cabot Wealth Advisory e-Letter, (published 5x per week), your no-cost, no-hype source for thoughtful market tips, observations and forecasts, and we'll immediately give you this latest research report... Absolutely FREE:

Enter Your E-Mail Address Below

We Value Your Privacy!

The Law of Large Numbers tells us that the odds of investment success improves when a company addresses a mass market, and this theme is present in the special report created by Cabot Small-Cap Confidential.

This report focuses on a company addressing the mass market of women (who account for over half the population of the planet). The main condition being targeted is a medical phenomenon that traditionally leads to a hysterectomy. Our featured stock has a treatment that promises to improve the health of hundreds of thousands of women as well as reduced expenses for

insurers. For the Investors who get on board early, the long-term result will be big profits

This report is time sensitive you must act now. It will only be available for the next 30 days.

Gain immediate access to "The Best Small-Cap Stock to Own Now" when you subscribe to Cabot Wealth Advisory today. Soon you'll see for yourself the fantastic growth potential of this medical wonder stock.

Sign-Up Today and Get Your FREE Report!

How Small-Caps Can Make You Rich!

The term refers to stocks with a small market capitalization between US$250 million and $2 billion. Stocks with a market cap below $250 million are referred to as micro caps, and those below $50 million are called nano caps. Small-cap stocks can trade on any exchange although a majority of them are found on the NASDAQ or the OTCBB because of more lenient listing requirements.

It is important to make the distinction between small caps and penny stocks. You can be a small cap without being a penny stock. There are plenty of small caps trading at more than $1 per share, with more liquidity than the average penny stock.

Small cap stocks can be risky because market and/or economic reversals can be devastating to smaller companies that often lack the financial resources to hold on through tough times and evaluating small cap companies is sometimes difficult due to the lack of information or historical data.

Despite the risks associated with small cap stocks, there are some good reasons for considering adding them as a modest portion (usually no more than 5% - 10%) of your portfolio.

One of the most compelling reasons why small caps deserve representation in your portfolios is that most successful large-cap companies started at one time as small businesses. Small caps give the individual investor a chance to get in on the ground floor. Everyone talks about finding the next Microsoft, Wal-Mart or Home Depot, because at one point these companies were small caps, diamonds in the rough if you will. Had you possessed the foresight to invest in these companies from the beginning, even a modest investment would have ballooned into an extravagant sum.

Here are some other good points about small cap stocks:

•It is easier to double the sales of a company doing $20 million per year than it is to double the sales of a company doing $2 billion in sales. Rapid growth is easier for small cap stocks.
•Smaller companies can "fly under the radar" of intense market attention longer. This keeps the price from being bid up too high or knocked down too low. Most mutual funds, for instance, don't invest in small cap stocks.
•Small companies tend to be more nimble and react quicker to market and technological conditions. Small companies can exploit opportunities that larger companies can't afford to chase because of their huge overhead.

How do you find a good small cap stock?

It requires more work than investing in larger, better-followed companies since there may not be much information available.

Tom Garrity of Cabot Small-Cap Confidential spends hours researching small companies that are still unknown. He then buys when prices are low. And holds on … with the tenacity and patience of a dog with a fresh bone.

If I told you this style of investing was easy, I'd be lying. It's hard; that's why so few people can do it.

Like most great investors, Tom attributes his success to a set of carefully developed rules. Here they are, in Tom's own words.

1) Look for a compelling reason for stock ownership. In short, out of thousands of possible investment candidates what is it about a company that will attract mutual funds, hedge funds and pensions alike to invest in a single company?
2) Look for small companies that target shares of very large burgeoning markets. When you invest in markets of considerable size you almost immediately reduce your risk profile and stage your investment for potential enormous gains.
3) Build your position early in the stock … before the institutions arrive.
4) Good stock picking is analogous to good poker skills. Your objective should be to get as many face cards as possible to win the game. Company revenue is one face card, top-line sales is another, earnings another, thematic investment idea another, barriers of entry another, etc.
5) Invest for both value and growth. I like significant growth in sales, combined with a great disparity between a company's market potential and its price to sales multiple.
6) Invest like you're shopping at a warehouse store. Buy cheap, and buy in bulk. Very few stocks meet my high standards and qualify as investment candidates, so when I find one, I buy a lot of it.
7) Finally, stay educated and up to date on the companies you own. Diligence is dynamic.

By following these rules. Tom typically buys stocks before they've started their up-moves. That often means he has to wait a while to realize the fruits of his research. But the wait is worth it!

Because the long-term result is winners like these:

•Bolt Technology (BOLT) – Bought 10/25/04 at 2.82. Up more than 300% as of mid-June.
•VASCO Data Security (VDSI) – Bought 9/8/04 at 1.96. Up a huge 250% as of mid-June.
•Versant (VSNT) – Bought 12/9/05 at 5.17. Up nearly 200% as of mid-June.

Even more recently, two of Tom's top-rated stocks have climbed a whopping 150% since they were recommended!

Part of these great gains reflects fundamental progress at the companies themselves, but part of it has come because Wall Street has slowly become aware of these companies and initiated coverage.

In a nutshell: When Tom finds these companies, they're often low-priced and they're often thinly traded. But as Wall Street takes notice, trading volume rises, and prices rise, too!

Moral: There's great value in distancing yourself from Wall Street, especially if it means you can buy a stock earlier and cheaper.

Says Tom, "I'm never in competition with the movers and shakers of the street. I like to keep my work under wraps. The less noise you make about your investment themes and ideas, the longer you can exploit the mastery of your investment plan."

Which brings me to a unique feature of Cabot Small-Cap Confidential: Its circulation is limited to just 500 subscribers.

Are small cap stocks for you?

If you are risk adverse, probably not. However, if you are up for some volatility and have a small portion of your portfolio you are willing to put at risk for a potential payoff, you may want to give them a careful look.

Sign-Up Today and Get Your FREE Report!

Cabot Wealth Advisory delivers independent, no-nonsense investment advice on how to build long-lasting wealth. You'll learn about new hot stocks & the market timing indicators to profit from them. What Our Readers are saying:

"First I want to thank you for all your wonderful business practices, the letters, the writings, the wit, the wisdom, the education, all so first rate. It emboldens, inspires and wises me up."

--Joan Detlefsen, Mount Airy, Maryland, U.S.A.
"I cannot express how favorably impressed I am by your unbiased and honest views of the stock market; you have proven that honesty is still a valid word. Your unparalleled experience in both technical and fundamental analysis of the stock market and your unequaled care for your subscribers.
"I am writing this today because I think you should know that subscribers "feel" the difference between you guys and other so called "up & up" fancy expensive market letters. I have lost a bundle subscribing with them and they did not deliver the goods. They have a lot to learn from you people and I also commend you on the Outstanding Professionalism that is synonymous with the Cabot name. Believe me these are not compliments, these are facts, and I have never, until today, written a thank you letter such as this one.
"Suffice it to say that you already saved me a bundle of money by saying it "like it is" and steered me away from the pundits (bandits?) and the empty taking heads. Dear sirs, you have in me a subscriber for life. Best regards to all."

--J. Der Mesropian, Fulton, NY

~~~~~~~~~~~~~~

Cabot Wealth Advisory's mission is to help you stay on the path to financial independence. We'll help you uncover hidden market indicators, time-tested investing techniques and current emerging trends. You get action-oriented, reliable advice in plain English.

We are not the typical financial missive lead by self important Gurus. We're real people with real experience - and we offer high-quality investment advice based on a proven system - all delivered with a smile.

Sign-Up Today and Get Your FREE Report!

We Value Your Privacy!

"We will not share your email address with anyone else, period."
- Andrew Palmer, Director E-commerce Marketing
Cabot Heritage Corporation

Cabot Wealth Advisory will never sell, rent or otherwise abuse your e-mail address. It will be used solely for the purpose of sending you the Cabot Wealth Advisory and updates about Cabot. Should you wish to unsubscribe at any time, instructions are included with each e-mail for immediate removal from the subscriber file.