Wednesday, July 10, 2013

Cheap Lululemon 5 Small Caps to Juice Your Portfolio investors



5 Small Caps to Juice Your Portfolio investors This article is part of our Rising Star Portfolios series. When last we chatted, before the holidays slowed things down, we were screening for great small caps. Today, well take a closer look at our candidates and narrow the fields been a month since I bought a half-position in Coca-Cola(NYSE Cheap Lululemon: KO), and today Im going to finish the bottle and down the other half. That will give us about $1,000 worth of the sugar-water king, or roughly 5% of my $17,000 portfolio. Splitting up the buy will have little effect on the port Cheap Lululemon, but I wanted to introduce the practice early on. Ill be using the technique more, especially with smaller and more volatile companies. We have a lot more large-cap buying to do, so well eventually return to the Corporate El Dorado screen that led me to Coke.lululemon:- This retailer designs technical athletic apparel, mostly geared toward yoga-loving women although theres increasing focus on menswear. Management employs a vertical strategy, meaning it controls most everything from design to sale. Its growing like gangbusters, and the big payoff for investors would come about if lululemon becomes the next great athletic brand.Ebix:- Ebix is the hidden engine that helps much of the insurance industry function efficiently. It provides software and e-commerce products that streamline processes for brokers, carriers, underwriters, and reinsurers. This is a very acquisitive company, and management is assembling a powerful network thats hard for competitors to matchrcadoLibre:- Lets all say it together: MercadoLibre is the eBay of Latin America. Like eBay (Nasdaq:EBAY) (and Ebix above) the online auction star gets big benefits from the network effect. That effect is so powerful that not even eBay could knock it off its perch in that area of the world, and instead bought up about 18% of MercadoLibre.Puda Coal:- Puda provides premium grade cleaned coking coal thats used by steel producers. The difference is this Lululemon Groove Pants all happens in China, which, as everyone knows, is experiencing the greatest growth spurt since Yao Ming hit fifth grade. This gives it a great location advantage because its able to supply the region at a lower cost than outside competitors. Puda Cheap Lululemon has attractive multiples, good returns on equity, a solid balance sheet, and lots of room to grown.ZAGG:- As interesting as its name, ZAGG makes stuff for consumer electronic devices. Think headphones, speakers, and protective screens for iPods and cell phones. But the real story is its small size combined with red-hot growth: Revenue and income are up 70% and 60%, respectively, over the past 12 months.Foolish bottom line:- None of these would be considered undervalued by traditional measures, but thats by choice. The Foolish 8 screens produce stocks that have already been validated by the market, which is a fancy way of saying theyve run up quite a bit in recent months. But the screens performances speak for themselves, and Im confident there are winners in this bunch.I still have some research to do in order to come up with the right choice for our multivitamin portfolio, and Ill reveal the results next week. Stay in touch by following me on Twitter and by checking in with the multivitamin discussion board.Find more informations aboutpersonal finance newsandUS stock market updates

1 comment:

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