Tag Archives: FOXF

9 Small-Cap Stocks to Buy for 2018

When was the last time that small-cap stocks outperformed the S&P 500 Index? Take a guess? Any guess? It wasn’t as long ago as you might think. The answer is 2016.

According to Morningstar, the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) had an annual total return of 22% last year, almost double the 12% total return of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY).

So far this year, the SPY is beating the proxy for small-cap stocks by almost 800 basis points. Over the past decade, however, IWM bested SPY on six occasions, suggesting good things do come in small packages.

Should the Trump tax plan get passed, small-cap stocks should benefit significantly from the fact they generate a significant portion of their revenue domestically where they’ll be taxed at 20% instead of the old rate of 35%.

Large-cap stocks might have gotten an edge up in 2017, but the coming year is looking good for smaller companies. Here are my nine small-cap stocks to own in 2018.

Small-Cap Stocks to Buy in 2018: RMR Group (RMR) investorplace.com/wp-content/uploads/2017/05/rmrmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

RMR Group Inc (NASDAQ:RMR) is an alternative asset manager based in Newton, Massachusetts, that primarily handles the day-to-day operations of four REITs: Hospitality Properties Trust (NASDAQ:HPT), Senior Housing Properties Trust (NASDAQ:SNH), Select Income REIT (NASDAQ:SIR) and Government Properties Income Trust (NASDAQ:GOV).

These four REITs have no employees and are managed by RMR. No matter what happens to REITs due to higher interest rates, etc., short of bankruptcy, RMR gets paid to manage $28 billion of commercial real estate assets.

In April 2016, I called GOV one of the five best REITs to own that broke the mold by being unconventional. In the case of GOV, it was owning and managing government office space. At the time of my article, it owned 10.7 million square feet of office space over 71 properties with 93% of the space rented to government agencies.

As a result of its October 2017 acquisition of First Potomac Realty Trust, GOV now owns 24.9 million square feet of office space.

Also, it owns 28% of SIR, one of the other REITs managed by RMR. It’s a little incestuous, I’ll grant you, but it’s a great way to separate fee-generating revenue from income-generating revenue.

Small-Cap Stocks to Buy in 2018: Callaway Golf (ELY) Callaway Golf Co (NYSE:ELY)investorplace.com/wp-content/uploads/2017/03/elymsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/03/elymsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/03/elymsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/03/elymsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/03/elymsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/03/elymsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/03/elymsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/03/elymsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/03/elymsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/03/elymsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Call me crazy, but I believe golf is ready for a mini-comeback given the NFL appears to be slowly imploding due to multiple factors including an ownership base that seems oblivious to the fact Roger Goodell is highly overpaid.

It might be hard to believe, but Callaway Golf Co (NYSE:ELY) is finishing off a third consecutive year with ELY stock in positive territory for the year, up 32% year to date through Dec. 11. The company’s been making under-the-radar acquisitions in 2017 that will position it for future growth.

In January, it paid $76 million for Ogio International Inc., a golf-bag manufacturer. Then in August, it acquired TravisMathew, a high-end lifestyle apparel brand that it can extend beyond the golf course, for $126 million.

At the end of October, Callaway announced healthy third-quarter 2017 results that included much stronger profits and revenue growth across all segments and regions.

I see a fourth consecutive year of strong returns for ELY stock.

Small-Cap Stocks to Buy in 2018: Fox Factory (FOXF) investorplace.com/wp-content/uploads/2017/06/foxfmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/06/foxfmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Whether you’re a motocross rider or someone who just enjoys offroading with your ATV, the shocks you put on your vehicle can make all the difference in the comfort and quality of your ride.

Fox Factory Holding Corp. (NASDAQ:FOXF) has been manufacturing shock absorbers for powered and non-powered vehicles since 1974. FOXF went public in August 2013 at $15 a share.

FOXF stock started off slowly after its IPO, never getting more than two or three dollars above $15 until July 2016 when investors started to take notice. Since then, it’s more than doubled in price and is up 43% year to date through Dec. 11.

On Dec. 1, Fox Factory announced that it was buying 80% of the Tuscany Motor Company for $53.4 million and the option to acquire the remaining 20% in the future. While Tuscany only adds $41 million in revenue, it gives the company a new platform on which to expand its aftermarket business.

If you want a dressed up F-150 truck, Tuscany can help you out.

Small-Cap Stocks to Buy in 2018: Buckle (BKE)

investorplace.com/wp-content/uploads/2016/12/bkemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/12/bkemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/12/bkemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/12/bkemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/12/bkemsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2016/12/bkemsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2016/12/bkemsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/12/bkemsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/12/bkemsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/12/bkemsn-170×93.jpg170w” sizes=”(max-width: 728px) 100vw, 728px” />

There are stock recommendations and then there are gut feels. Putting Buckle Inc (NYSE:BKE) on this list of small-cap stocks, it fits under the latter category.

I was once a big believer in its stock recommending it as recently as January 2016. However, in that article, I did admit it wasn’t performing too well and would require a patient investor to ride out the downturn. Somewhere along the way, Buckle fell out of favor with shoppers, and its financial situation went from great to just good.

On Dec. 5, Buckle announced it would pay a $1.75 special cash dividend to shareholders of record as of Jan. 12, 2018, in addition to the regular 25-cent dividend. That’s $7.47 in special cash dividends the company’s paid out over the past five years. Of course, considering its stock is down 5% annually over the same period, it only cushions the blow.

With comps still in negative territory but margins improving, I’m going to go out on a limb here and say 2018 is the year this small-cap stock delivers the goods.

Small-Cap Stocks to Buy in 2018: Viad (VVI) investorplace.com/wp-content/uploads/2017/01/vvimsn-1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/01/vvimsn-1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

In September, I recommended Viad Corp (NYSE:VVI) as one of two stocks to buy whose market cap was lower than GoPro Inc (NASDAQ:GPRO). Since then, VVI is down 2% versus a 24% decline for GPRO.

While VVI has yet to come to life, I have reason to believe 2018 will be a good year for its stock.

First, in November, Viad’s travel experience business announced that it would expand its FlyOver virtual flight concept that began with FlyOver Canada by acquiring 55% of Iceland’s Esja Attractions. Iceland continues to be one of the world’s greatest tourism destinations; this new attraction will drive further growth in its Pursuit segment.

Secondly, acquisitions its GES exhibition business made in 2017, have yet to deliver upon the synergies and cost savings originally expected. However, CEO Steve Moster did say in the Q3 2017 earnings release that the addition of higher-margin services to its offerings is driving top- and bottom-line profits.

VVI stock has done well the past six years with not a single year of declines. With all that it’s doing to grow the travel side of its business, I see that streak continuing in 2018.

Small-Cap Stocks to Buy in 2018: PetMed Express (PETS)

investorplace.com/wp-content/uploads/2017/12/petsmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/petsmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/petsmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/petsmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/petsmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/petsmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/petsmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/petsmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/petsmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/12/petsmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />

It seems that controversy seems to follow PetMed Express Inc (NASDAQ:PETS), America’s largest pet pharmacy.

In the summer, PETS faced troubling allegations from short sellers that it was marketing painkillers meant for animals to humans. Its stock tanked down to the mid-$30s before recovering in the fall on strong earnings.

This isn’t the first time the company’s faced controversy. In the past, it’s had a rocky relationship with the veterinary community who believe PetMed Express is trying to undermine their businesses through lower prices and misleading advertising.

I don’t think PETS will ever escape the focus of investors because once you’re targeted as a good short, you can never scare them away except by delivering strong results as it did in Q2 2017.

Historically, PETS has delivered strong returns, and as long as it continues to boost the order value per customer — $85 in Q2 2017, $3 more than a year earlier — I don’t see why it can’t produce another year of appreciation.

Small-Cap Stocks to Buy in 2018: iRobot (IRBT) investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

iRobot Corporation (NASDAQ:IRBT) owns an impressive 64% of the global robotic vacuum cleaner market. Recently, I saw an ad for the Shark ION ROBOT vacuum, an indication that although the competition is mounting, it also legitimizes the entire robotic vacuum industry.

I can remember when investors were hypercritical of iRobot because it wasn’t expanding its business further into the military arena. You want to talk about competitive, just try getting a contract with the federal government. It takes deep pockets and even deeper patience.

In May, I called IRBT on of the best growth stocks to buy, in part because it had fully recovered from its troubles stemming from its defense-related business which it dumped in 2016. The fact is, iRobot’s become a fan of short sellers, and that’s made its stock seriously volatile. And that’s a good thing when it comes to small-cap stocks.

In July, IRBT stock was trading over $105; today, it’s around $70. I believe it will continue to grow its main product at a reasonable pace while it figures out the next great thing to diversify its revenue streams.

In the meantime, you might want to continue to buy on weakness. In 2018, given its strong robotic patents, iRobot could be a good acquisition candidate.

Small-Cap Stocks to Buy in 2018: WisdomTree Investments (WETF)

WisdomTreeinvestorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />

Don’t look now but WisdomTree Investments, Inc. (NASDAQ:WETF) is shaking up upper management.

Probably the biggest news from the organizational changes WETF is making is that board member Jarrett Lilien is stepping down to join day-to-day operations as Executive Vice President in charge of Emerging Technologies. Lilien was COO of E*Trade Financial Corp (NASDAQ:ETFC) between 2003 and 2008.

The ETF asset manager is probably best known for its WisdomTree Japan Hedged Equity Fund (NYSEARCA:DXJ) which is the second-largest Japan-focused ETF in the U.S. with $9.5 billion in assets.

Although DXJ is its highest-profile ETF, it has 12 ETFs with more than $1 billion in assets and considerably more with $100 million or more, making it the seventh-largest ETF provider in the U.S.

While it’s had a tough time grabbing market share in the Canadian ETF market, which it entered in July 2016, its partnership with Canadian online broker Questrade should help make a dent. The company’s aware that it needs to go global and the organizational changes are meant to address this need.

I see its stock above $20 by the end of 2018, 2019 at the latest.

Small-Cap Stocks to Buy in 2018: Oxford Industries (OXM) investorplace.com/wp-content/uploads/2017/12/oxmmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

The apparel manufacturer and retailer’s bounced back nicely after a down year in 2016.

Oxford Industries Inc (NYSE:OXM) owns a trio of apparel brands: Tommy Bahama, Lily Pulitzer and Southern Tide, which it acquired in April 2016 for $85 million.

If you’re not familiar with Southern Tide, it has a nice big fish as its logo, doing its best to keep up with polo players and crocodiles.

On Dec. 5, OXM announced its Q3 2017 results and they were solid. Furthermore, it expects fiscal 2017 earnings on an adjusted basis to be as high as $3.38 a share on $1.1 billion in sales.

Highlights in 2017 include Lily Pulitzer delivering solid operating margins through the first nine months — 22.7% versus 6.6% for Tommy Bahama, its biggest brand by sales — and its latest acquisition becoming profitable on the year.

With the help of Southern Tide growth over the next 2-3 years, I could see OXM stock hitting $100 in 2018.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.

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what is stock

Treasury yields inched slightly lower on Monday trade after a strong auction for 5-year notes helped to lift demand for government paper across the board, kicking off a week brimming with economic data that could influence the Federal Reserves timetable for normalizing monetary policy.

The yield for the benchmark 10-year Treasury note
TMUBMUSD10Y, -1.05%
posted a decline of 1.1 basis point to 2.159%, its lowest level since June 26. The 2-year Treasury notes yield
TMUBMUSD02Y, -1.19%
ticked 0.4 basis point lower to 1.334%, while the 30-year bonds yield
TMUBMUSD30Y, -0.75%
ended mostly flat at 2.751%. Bond prices move inversely to yields.

what is stock: Arcadia Biosciences, Inc.(RKDA)

Advisors’ Opinion:

  • [By Jim Robertson]

    Yesterday, our Under the Radar Movers newsletter suggested small cap agricultural biotechnology Arcadia Biosciences (NASDAQ: RKDA) as a short/bearish trade:

  • [By Peter Graham]

    The Q3 2016 earnings report formid cap pet stock agricultural biotechnology Arcadia Biosciences (NASDAQ: RKDA) is scheduled for after the market closes onThursday (November 10th). Last Thursday, our Under the Radar Movers newsletter suggestedthe stockas a short/bearish trade, saying:

what is stock: American DG Energy Inc.(ADGE)

Advisors’ Opinion:

  • [By Jim Robertson]

    On Thursday, our Under the Radar Moversnewsletter suggested small cap green energy stock American DG Energy (NYSEMKT: ADGE) as a long trade:

    As for American DG Energy, today’s push above a technical ceiling at $0.34 is telling, though that clue is made more telling when you see the short-term moving average lines have given us key bullish crosses over the course of the past couple of months; the undertow is turning bullish. What you can’t see on the daily chart is that this is the first time in years we’ve seen higher lows logged for ADGE.

what is stock: TAL International Group Inc.(TAL)

Advisors’ Opinion:

  • [By Craig Jones]

    Instead of buying TAL Education Group (ADR) (NYSE: TAL), Cramer would buy Alibaba Group Holding Ltd (NYSE: BABA).

    Cramer thinks Burlington Stores Inc (NYSE: BURL) is going to have a good quarter, because Ross Stores, Inc. (NASDAQ: ROST) posted a good one, and they have similar business models.

what is stock: Fox Factory Holding Corp.(FOXF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.

    Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.

what is stock: Valhi Inc.(VHI)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Thursday, basic materials shares slipped by 0.61 percent. Meanwhile, top losers in the sector included Valhi, Inc. (NYSE: VHI), down 13 percent, and LSB Industries, Inc. (NYSE: LXU), down 7 percent.

9 Small-Cap Stocks to Buy for 2018

When was the last time that small-cap stocks outperformed the S&P 500 Index? Take a guess? Any guess? It wasn’t as long ago as you might think. The answer is 2016.

According to Morningstar, the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) had an annual total return of 22% last year, almost double the 12% total return of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY).

So far this year, the SPY is beating the proxy for small-cap stocks by almost 800 basis points. Over the past decade, however, IWM bested SPY on six occasions, suggesting good things do come in small packages.

Should the Trump tax plan get passed, small-cap stocks should benefit significantly from the fact they generate a significant portion of their revenue domestically where they’ll be taxed at 20% instead of the old rate of 35%.

Large-cap stocks might have gotten an edge up in 2017, but the coming year is looking good for smaller companies. Here are my nine small-cap stocks to own in 2018.

Small-Cap Stocks to Buy in 2018: RMR Group (RMR) investorplace.com/wp-content/uploads/2017/05/rmrmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/rmrmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

RMR Group Inc (NASDAQ:RMR) is an alternative asset manager based in Newton, Massachusetts, that primarily handles the day-to-day operations of four REITs: Hospitality Properties Trust (NASDAQ:HPT), Senior Housing Properties Trust (NASDAQ:SNH), Select Income REIT (NASDAQ:SIR) and Government Properties Income Trust (NASDAQ:GOV).

These four REITs have no employees and are managed by RMR. No matter what happens to REITs due to higher interest rates, etc., short of bankruptcy, RMR gets paid to manage $28 billion of commercial real estate assets.

In April 2016, I called GOV one of the five best REITs to own that broke the mold by being unconventional. In the case of GOV, it was owning and managing government office space. At the time of my article, it owned 10.7 million square feet of office space over 71 properties with 93% of the space rented to government agencies.

As a result of its October 2017 acquisition of First Potomac Realty Trust, GOV now owns 24.9 million square feet of office space.

Also, it owns 28% of SIR, one of the other REITs managed by RMR. It’s a little incestuous, I’ll grant you, but it’s a great way to separate fee-generating revenue from income-generating revenue.

Small-Cap Stocks to Buy in 2018: Callaway Golf (ELY) Callaway Golf Co (NYSE:ELY)investorplace.com/wp-content/uploads/2017/03/elymsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/03/elymsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/03/elymsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/03/elymsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/03/elymsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/03/elymsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/03/elymsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/03/elymsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/03/elymsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/03/elymsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Call me crazy, but I believe golf is ready for a mini-comeback given the NFL appears to be slowly imploding due to multiple factors including an ownership base that seems oblivious to the fact Roger Goodell is highly overpaid.

It might be hard to believe, but Callaway Golf Co (NYSE:ELY) is finishing off a third consecutive year with ELY stock in positive territory for the year, up 32% year to date through Dec. 11. The company’s been making under-the-radar acquisitions in 2017 that will position it for future growth.

In January, it paid $76 million for Ogio International Inc., a golf-bag manufacturer. Then in August, it acquired TravisMathew, a high-end lifestyle apparel brand that it can extend beyond the golf course, for $126 million.

At the end of October, Callaway announced healthy third-quarter 2017 results that included much stronger profits and revenue growth across all segments and regions.

I see a fourth consecutive year of strong returns for ELY stock.

Small-Cap Stocks to Buy in 2018: Fox Factory (FOXF) investorplace.com/wp-content/uploads/2017/06/foxfmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/06/foxfmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/06/foxfmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Whether you’re a motocross rider or someone who just enjoys offroading with your ATV, the shocks you put on your vehicle can make all the difference in the comfort and quality of your ride.

Fox Factory Holding Corp. (NASDAQ:FOXF) has been manufacturing shock absorbers for powered and non-powered vehicles since 1974. FOXF went public in August 2013 at $15 a share.

FOXF stock started off slowly after its IPO, never getting more than two or three dollars above $15 until July 2016 when investors started to take notice. Since then, it’s more than doubled in price and is up 43% year to date through Dec. 11.

On Dec. 1, Fox Factory announced that it was buying 80% of the Tuscany Motor Company for $53.4 million and the option to acquire the remaining 20% in the future. While Tuscany only adds $41 million in revenue, it gives the company a new platform on which to expand its aftermarket business.

If you want a dressed up F-150 truck, Tuscany can help you out.

Small-Cap Stocks to Buy in 2018: Buckle (BKE)

investorplace.com/wp-content/uploads/2016/12/bkemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/12/bkemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/12/bkemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/12/bkemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/12/bkemsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2016/12/bkemsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2016/12/bkemsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/12/bkemsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/12/bkemsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/12/bkemsn-170×93.jpg170w” sizes=”(max-width: 728px) 100vw, 728px” />

There are stock recommendations and then there are gut feels. Putting Buckle Inc (NYSE:BKE) on this list of small-cap stocks, it fits under the latter category.

I was once a big believer in its stock recommending it as recently as January 2016. However, in that article, I did admit it wasn’t performing too well and would require a patient investor to ride out the downturn. Somewhere along the way, Buckle fell out of favor with shoppers, and its financial situation went from great to just good.

On Dec. 5, Buckle announced it would pay a $1.75 special cash dividend to shareholders of record as of Jan. 12, 2018, in addition to the regular 25-cent dividend. That’s $7.47 in special cash dividends the company’s paid out over the past five years. Of course, considering its stock is down 5% annually over the same period, it only cushions the blow.

With comps still in negative territory but margins improving, I’m going to go out on a limb here and say 2018 is the year this small-cap stock delivers the goods.

Small-Cap Stocks to Buy in 2018: Viad (VVI) investorplace.com/wp-content/uploads/2017/01/vvimsn-1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/01/vvimsn-1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/01/vvimsn-1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

In September, I recommended Viad Corp (NYSE:VVI) as one of two stocks to buy whose market cap was lower than GoPro Inc (NASDAQ:GPRO). Since then, VVI is down 2% versus a 24% decline for GPRO.

While VVI has yet to come to life, I have reason to believe 2018 will be a good year for its stock.

First, in November, Viad’s travel experience business announced that it would expand its FlyOver virtual flight concept that began with FlyOver Canada by acquiring 55% of Iceland’s Esja Attractions. Iceland continues to be one of the world’s greatest tourism destinations; this new attraction will drive further growth in its Pursuit segment.

Secondly, acquisitions its GES exhibition business made in 2017, have yet to deliver upon the synergies and cost savings originally expected. However, CEO Steve Moster did say in the Q3 2017 earnings release that the addition of higher-margin services to its offerings is driving top- and bottom-line profits.

VVI stock has done well the past six years with not a single year of declines. With all that it’s doing to grow the travel side of its business, I see that streak continuing in 2018.

Small-Cap Stocks to Buy in 2018: PetMed Express (PETS)

investorplace.com/wp-content/uploads/2017/12/petsmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/petsmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/petsmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/petsmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/petsmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/petsmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/petsmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/petsmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/petsmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/12/petsmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />

It seems that controversy seems to follow PetMed Express Inc (NASDAQ:PETS), America’s largest pet pharmacy.

In the summer, PETS faced troubling allegations from short sellers that it was marketing painkillers meant for animals to humans. Its stock tanked down to the mid-$30s before recovering in the fall on strong earnings.

This isn’t the first time the company’s faced controversy. In the past, it’s had a rocky relationship with the veterinary community who believe PetMed Express is trying to undermine their businesses through lower prices and misleading advertising.

I don’t think PETS will ever escape the focus of investors because once you’re targeted as a good short, you can never scare them away except by delivering strong results as it did in Q2 2017.

Historically, PETS has delivered strong returns, and as long as it continues to boost the order value per customer — $85 in Q2 2017, $3 more than a year earlier — I don’t see why it can’t produce another year of appreciation.

Small-Cap Stocks to Buy in 2018: iRobot (IRBT) investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/irbtmsn-1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

iRobot Corporation (NASDAQ:IRBT) owns an impressive 64% of the global robotic vacuum cleaner market. Recently, I saw an ad for the Shark ION ROBOT vacuum, an indication that although the competition is mounting, it also legitimizes the entire robotic vacuum industry.

I can remember when investors were hypercritical of iRobot because it wasn’t expanding its business further into the military arena. You want to talk about competitive, just try getting a contract with the federal government. It takes deep pockets and even deeper patience.

In May, I called IRBT on of the best growth stocks to buy, in part because it had fully recovered from its troubles stemming from its defense-related business which it dumped in 2016. The fact is, iRobot’s become a fan of short sellers, and that’s made its stock seriously volatile. And that’s a good thing when it comes to small-cap stocks.

In July, IRBT stock was trading over $105; today, it’s around $70. I believe it will continue to grow its main product at a reasonable pace while it figures out the next great thing to diversify its revenue streams.

In the meantime, you might want to continue to buy on weakness. In 2018, given its strong robotic patents, iRobot could be a good acquisition candidate.

Small-Cap Stocks to Buy in 2018: WisdomTree Investments (WETF)

WisdomTreeinvestorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/04/wisdomtreemsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />

Don’t look now but WisdomTree Investments, Inc. (NASDAQ:WETF) is shaking up upper management.

Probably the biggest news from the organizational changes WETF is making is that board member Jarrett Lilien is stepping down to join day-to-day operations as Executive Vice President in charge of Emerging Technologies. Lilien was COO of E*Trade Financial Corp (NASDAQ:ETFC) between 2003 and 2008.

The ETF asset manager is probably best known for its WisdomTree Japan Hedged Equity Fund (NYSEARCA:DXJ) which is the second-largest Japan-focused ETF in the U.S. with $9.5 billion in assets.

Although DXJ is its highest-profile ETF, it has 12 ETFs with more than $1 billion in assets and considerably more with $100 million or more, making it the seventh-largest ETF provider in the U.S.

While it’s had a tough time grabbing market share in the Canadian ETF market, which it entered in July 2016, its partnership with Canadian online broker Questrade should help make a dent. The company’s aware that it needs to go global and the organizational changes are meant to address this need.

I see its stock above $20 by the end of 2018, 2019 at the latest.

Small-Cap Stocks to Buy in 2018: Oxford Industries (OXM) investorplace.com/wp-content/uploads/2017/12/oxmmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/12/oxmmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

The apparel manufacturer and retailer’s bounced back nicely after a down year in 2016.

Oxford Industries Inc (NYSE:OXM) owns a trio of apparel brands: Tommy Bahama, Lily Pulitzer and Southern Tide, which it acquired in April 2016 for $85 million.

If you’re not familiar with Southern Tide, it has a nice big fish as its logo, doing its best to keep up with polo players and crocodiles.

On Dec. 5, OXM announced its Q3 2017 results and they were solid. Furthermore, it expects fiscal 2017 earnings on an adjusted basis to be as high as $3.38 a share on $1.1 billion in sales.

Highlights in 2017 include Lily Pulitzer delivering solid operating margins through the first nine months — 22.7% versus 6.6% for Tommy Bahama, its biggest brand by sales — and its latest acquisition becoming profitable on the year.

With the help of Southern Tide growth over the next 2-3 years, I could see OXM stock hitting $100 in 2018.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.

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list of penny stocks

Starbucks is going through somewhat of a rough patch, as the company reported disappointing Q2 2017 results with comparable sales growth slowing due to congestion caused by its mobile order pay and system. While the company is positive that the issues have been resolved and comps will start improving in the next quarter, analysts are not optimistic about the company meeting expectations. However, Starbucks is continuing its growth focus which includes its goal to double the food business by 2021. “Mercato,” the company’s menu of lunch items which include grab and go salads and sandwiches, is the pillar of this initiative. However, Starbucks recently partnered with Snap Kitchen to sell their products at its five cafes in Houston. The company hopes to expand this partnership in other regions soon. In addition to the “Mercato” initiative, we believe the partnership with Snap Kitchen will help Starbucks to cater to customers who prefer meals with healthier ingredients and can act as a catalyst for its goal of increasing revenues from food sales.

list of penny stocks: ProShares UltraShort Nasdaq Biotechnology(BIS)

Advisors’ Opinion:

  • [By Jim Robertson]

    Yesterday, our Elite Opportunity Pronewsletter suggested the ProShares UltraShort Nasdaq Biotech (NASDAQ: BIS) and Direxion Daily S&P Biotech Bear 3X Shares (NYSEARCA: LABD) as ways to short biotech onshort termweakness in the sector, but our suggestion comes with a long termcaveat:

list of penny stocks: Suzuki Motor Corporation (SZKMY)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    Elon has plans for a Gigafactory 3 somewhere in the US unlike the Gigafactory in Europe. If Tesla can get just two Gigafactories built, it will have the batteries at least to produce vehicles at about the same scale as Suzuki (OTCPK:SZKMY) (Suzuki made about 3mm autos in 2015). In fact, Tesla hopes to have the Gigafactory running flat out by 2020, supplying 3X the number of batteries it needs unless it can ramp production into 2020 further. These batteries will be used on the Tesla Power Walls and other power containment devices it has in its pipeline, but it sure seems that Tesla can ramp its auto production past the 500k units per year in 2019 and 2020. At the very least, it will likely have the batteries to do so.

list of penny stocks: Vicon Industries Inc.(VII)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows Digital Ally back to below the level it was at five years ago whiledirect competitorAxon Enterprise has outperformed along withsecurity stock Napco Security Technologies Inc (NASDAQ: NSSC), but video management software stockVicon Industries, Inc (NYSEMKT: VII) has underperformed:

list of penny stocks: Fox Factory Holding Corp.(FOXF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.

    Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.

list of penny stocks: Big 5 Sporting Goods Corporation(BGFV)

Advisors’ Opinion:

  • [By Nicholas Rossolillo]

    Dick’s Sporting Goods (NYSE:DKS) and Big 5 Sporting Goods (NASDAQ:BGFV) have both had a great 2016. As far as stock performance goes, Big 5 is the winner this year. But which company is in better shape for the new year?

list of penny stocks: Allegheny Technologies Incorporated(ATI)

Advisors’ Opinion:

  • [By Dan Caplinger]

    The stock market performed well on Tuesday, responding to steady improvement among many companies as earnings season kicked into high gear. Although political issues are likely to remain in the spotlight for some investors for the foreseeable future, many market participants are looking to economic and business issues in driving their investing decisions. Major market benchmarks finished the day with gains of 0.5% to 1%, but some stocks did much better. Among the best performers on the day were Allegheny Technologies (NYSE:ATI), II-VI (NASDAQ:IIVI), and Beazer Homes (NYSE:BZH). Below, we’ll look more closely at these stocks to tell you why they did so well.

  • [By Lisa Levin]

    Tuesday morning, the basic materials shares climbed by 0.95 percent. Meanwhile, top gainers in the sector included Allegheny Technologies Incorporated (NYSE: ATI), up 5 percent, and Mechel PAO (ADR) (NYSE: MTL), up 5 percent.

top stocks to invest in

Interest rates in Germany are -0.94% as I write…   Read that closely – that's a NEGATIVE number – roughly negative 1%.   Said another way, you will "earn" -0.94% interest per year over two years in Germany today.   I put "earn" in quotes because you will actually lose that money each year. It's negative interest. By buying two-year government bonds in Germany, you are guaranteeing that you will lose roughly 1% a year in "interest."   What's going on?   Lots of things… But it primarily comes down to the basics: supply and demand.   There is no supply, and there is lots of demand…  
On the demand side, the French are buying German bonds to get money away from the uncertainty around France's presidential election. And the European Central Bank must buy 80 billion euros' worth of German bonds by year-end. There's plenty of demand.

top stocks to invest in: Zion Oil & Gas Inc(ZN)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Wednesday, energy shares fell by 0.76 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 6 percent, and Zion Oil & Gas, Inc. (NASDAQ: ZN) down 7 percent.

  • [By Lisa Levin]

    Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 20 percent to $5.07.

    Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 12 percent to $19.40. Guggenheim upgraded Spark Energy from Neutral to Buy.

  • [By Lisa Levin]

    Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 47 percent to $6.21.

    Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 10 percent to $19.10. Guggenheim upgraded Spark Energy from Neutral to Buy.

top stocks to invest in: Synta Pharmaceuticals Corp.(SNTA)

Advisors’ Opinion:

  • [By Lisa Levin]

    Synta Pharmaceuticals Corp. (NASDAQ: SNTA) shares were also up, gaining 61 percent to $0.393. Synta Pharmaceuticals announced plans to merge with privately-held Madrigal Pharmaceuticals.

top stocks to invest in: B&G Foods, Inc.(BGS)

Advisors’ Opinion:

  • [By Chris Lange]

    B&G Foods Inc. (NYSE: BGS) madewaves late on Friday after the company announced its most recent acquisition. B&G has now acquired Victoria Fine Foods from Huron Capital Partners and other sellers for roughly $70 million in cash.

top stocks to invest in: Fox Factory Holding Corp.(FOXF)

Advisors’ Opinion:

  • [By Javier Hasse]

    Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.

    Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.

top stocks to invest in: Terex Corporation(TEX)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Yesterday, Terex (TEX) announced that it would sell its ports business to Konecranes for $1.3 billion. Today, Baird’s Mircea Dobre and Joseph Grabowski upgraded Terex to Outperform from Neutral, arguing that the sale makes a takeover by China’s Zoomlion that much easier. They explain:

    Balint Porneczi/Bloomberg News

    The sale of MHPS to Konecranes is a positive catalyst on multiple fronts: shareholders got an attractive multiple for what historically has been a challenged business with further upside possible given 25% equity ownership in Konecranes, execution risk is diminished as new CEO can focus on operational improvement without the effort required to integrate the Terex and Konecranes businesses, and finally, the MHPS sale makes it easier for Zoomlion to acquire remaining Terex.

    While our upgrade is not reliant on Zoomlion acquiring Terex, the MHPS transaction could make a firm Zoomlion offer more likely.

    At the margin, a Zoomlion deal appears easier to get done: 1) the remaining businesses fit better with Zoomlions existing product portfolio of construction equipment, cranes, and various commercial and municipal equipment, 2) given the attractive terms of the MHPS sale, the funding hurdle required to acquire Terex is lowered, 3) many of the CFIUS issues center around national security concerns regarding the nations ports, no longer a concern given MHPS sale.

    Dobre and Grabowski also raised their price target on Terex to $30, up from $24. With Terex off 0.1% at $24.88 today, that leaves 21% upside in the stock to Baird’s target.

    In February, I wrote about Chinese demand for U.S. companies, including Terex.

  • [By Ben Levisohn]

    Third and a trigger for the change: China becomes an active bidder in the space. Chinas Zoomlion bid for Terex (TEX) ($3.3B) along with Haier/General Electric (GE) ($5.4B) and several ChemChina proposed deals in industrials changes the upside/downside skew, particularly on lower quality/more challenged names. The Terex bid does not appear to be one-off. Chinese outbound M&A announcements rose to record highs in 15; to $112B (up 57% from 2014) in total acquisitions. Industrials formed a large and rising portion, at ~12B completed. Thats roughly equal to the 3 prior years industrials deals combined, and is the highest on record. Energy and materials accounted for ~15% of 15 spend vs. ~83% in 2011. Even lower quality or more currently challenged machinery franchises have distribution which could be highly attractive to new entrants…

  • [By Ben Levisohn]

    Shares of Terex (TEX) had surged 32% as of the close of trading last Thursday–but dropped 14% the next day after China’s Zoomlion announced that it wouldn’t be pursuing a purchase of the U.S. crane maker after all. In the aftermath of the scuttled deal, Morgan Stanley’s Mili Pothiwala and Nigel Coe cut Terex to Equal Weight from Overweight:

    Balint Porneczi/Bloomberg News

    On Friday morning, Zoomlion announced it had terminated its bid for its proposed acquisition of Terex for $31/ share. This was a clear negative for Terex shares, which traded down ~15% on Friday to $20, given the absence of an event-driven catalyst (following the sale of MHPS to Konecranes, which we assume will be completed). However, we think that the stock’s current discount to the Machinery group on a P/E basis (20%+) is justified, given a still challenged underlying operating environment for the RemainCo, as well as historically uneven company execution – both of which return to the forefront of the investment debate following the removal of the M&A bull case.

    To which all we can say is: Oops.

    Shares of Terex have dropped 0.5% to $20.78

     

top stocks to invest in: B2Gold Corp(BTG)

Advisors’ Opinion:

  • [By Monica Gerson]

    B2Gold Corp (NYSE: BTG) is estimated to post its quarterly earnings at $0.00 per share on revenue of $135.84 million.

    Astro-Med, Inc. (NASDAQ: ALOT) is projected to post its quarterly earnings at $0.21 per share on revenue of $25.50 million.

  • [By Peter Graham]

    The following mining companies are active in Burkina Faso:

    Semafo Inc (TSE: SMF; OTCMKTS: SEMFF).SEMAFO operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposit of Siou, and is targeting production start-up of the Boungou Mine in the second half of 2018. SEMAFO’s strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities. SEMAFOs Mana Mine is located 260 kilometers southwest of the capital Ouagadougou. The third-largest mine in the country, it has produced some 1.6 million ounces since its first gold pour in 2008. Since then,the Company hasexpanded the plant four times to a current processing rate of over 7,200 tonnes per day. IAMGOLD Corp (NYSE: IAG). Iamgold has four operating gold mines on three continents with asolid base of strategic assets in North and South America and West Africa that is complemented by development and exploration projects with continued assessment of accretive acquisition opportunities. Iamgold is said to be thelargest private employer in Burkina Faso andhas a high level of exposure in the region with two operating mines in Mali and a mine in northern Burkina Faso near the Mali border. Roxgold Inc (TSE: ROXG; OTCMKTS: ROGFF). Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Hound茅 greenstone region of Burkina Faso, West Africa. The Company declared commercial production on October 1, 2016. The Yaramoko permit covers approximately 196km2 in the Province of Bal茅 in southwestern Burkina Faso. The property is located approximately 200 kilometres southwest from the capital city of Ouagadougou. Yaramoko lies directly south of, and is contiguous to, the SEMAFO Inc property hosting its flagship Mana Gold Mine and lies within the Hounde greenstone belt. Endeavour Mining Corp (TSE: EDV; OTCMKTS: EDVMF). Endeavour is ideally positioned as the majo

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