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.