Why Not To Give Up On Small Caps

Last year, small-cap stocks lagged large stocks by the widest margin since 1998, but newsletter guru Jim Oberweis says not to quit on the little guys.

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Oberweis On How To Play The Mobile Boom

In his latest Forbes column, newsletter guru Jim Oberweis says that the mobile market is full of investment opportunities, but that it can be a dangerous place for investors as well.
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Oberweis: Keep It Simple

Newsletter guru Jim Oberweis says that when it comes to growth investing, keep it simple.
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Why High Small-Cap P/Es Might Not Be So Bad

Small-cap valuations are quite high these days, but newsletter guru Jim Oberweis says there may be good reason for that: institutional investors being “desperate” to reach pension fund goals.

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Oberweis On What People Get Wrong About China

Newsletter guru Jim Oberweis, whose China fund is in the top 1% of funds in its class over the past one, three, and five years, according to Morningstar, says investors look at China the wrong way.

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Oberweis On The Importance Of Catalysts

When it comes to investing in small stocks, newsletter guru Jim Oberweis says that fundamentals and financials are important — but not all you should consider.

“For small-cap stocks, a catalyst — such as a new partnership, a new product or regulatory approval — can drive earnings growth,” Oberweis writes in his latest Forbes column. “Understand this early on and you’ll have an edge. I look for stocks with a history of extraordinary earnings growth selling at reasonable valuations, with a clear catalyst.”

What catalyst-driven small stocks is Oberweis finding today? He examines three, including customer service/knowledge management software firm eGain, whose partnership with Cisco is providing a nice catalyst, according to Oberweis. 

Validea’s Peter Lynch-inspired portfolio is up 70% in 2013. Click here to see what stocks it’s high on right now.

Oberweis: Small-cap Valuations Looking Good

After being pummeled in the 2008-09 financial crisis, small-cap stocks have bounced back strong and small-cap valuations have moved back toward normal levels over the past few years. But newsletter guru Jim Oberweis says that, compared to their larger peers, small stocks are still quite attractively valued.

“With valuations no longer at bargain-basement levels, earnings growth will be the driver for high returns,” Oberweis writes in his latest Forbes column. “For companies under $1 billion in market capitalization and with annualized growth rates of 30% or more, the average forward price-to-earnings multiple is now 16.1 — a shade above the 15.6 times earnings for the S&P 500. But you’re paying for faster growth, and it’s actually an unusually small premium to those large-cap stocks.”

Oberweis looks at a handful of small stocks that he’s particularly high on right now. Among them: online postage provider Stamps.com.