News You Can Use 8/6/01

For Bigger Returns, Look at Small Stocks
By Bruce Mushial

The steady decline in the stock market has ended, so which stocks are going up? You might be surprised to find out the hottest stock group isn't the conservative blue chips or the techs, it's the small cap stocks. Twenty-eight of the 38 funds Morningstar classifies as micro-cap have posted double-digit gains so far this year, while large-stock growth stock funds are down 19 percent as a group. Small-caps are those companies with a market value less than $400 million.

Through June, micro-cap funds had a net inflow of $1.5 billion, causing many funds to close their funds to new investors. So the best opportunities are in micro-caps and the door has closed to many investors. Where are you going to go to capture some of these winners for your portfolio?

Stock Traders Press has initiated the Mad Money report. This monthly report seeks out small and micro-cap stocks that are likely to show significant appreciation. These are the stocks that every savvy investor should buy now before it is too late. Many fund managers think the market will continue to favor small cap stocks for a year or two more.

Click for free trial report

Our last Mad Money pick climbed 30% in less than two weeks!!!

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