Any investor looking for portfolio growth should consider making small cap companies a good percentage of their portfolio. Typically, small cap companies are more volatile than large cap companies, carrying larger risks while potentially reaping greater rewards. This is why it is important to carefully research companies before investing. The following companies have been screened for several criteria focused on selecting small cap companies that look to experience spectacular growth in the coming years.
Landec Corp. (LNDC)
Landec was a February pick and has a market cap of 240.3 million. LNDC is now trading at around $9.7 a share (up from $9.5 a share) and has one-year target of $18.33 per share. The five-year expected growth is 27.5%, return on equity is 37.712, operating cash flow is 9.7 million, return on assets is 7.343, and the debt-equity ratio is 0.002.
Comtech Group Inc. (COGO)
Comtech was also a February pick and has a market cap of 422.5 million. COGO is now an even better bargain trading at around $10 a share and has one-year target of $23 per share. The five-year expected growth is 25%, return on equity is 14.127, operating cash flow is 15.2 million, return on assets is 6.681, and the debt-equity ratio is 0.005.
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