Tags: Oberweis | bullish | small-cap | stocks

Jim Oberweis Bullish on Small Cap Stocks

Monday, 09 Jan 2012 07:00 AM

By Dan Weil

Many stock market investors are now opting for blue-chip dividend shares as a safe haven from the recent turbulent trading. But Jim Oberweis, president of Oberweis Asset Management, is a contrarian. He favors small-cap stocks.

“Over a long period of time we always like small caps, because that’s where you get pricing inefficiencies,” Oberweis tells Forbes magazine publisher Steve Forbes.

“There just aren’t as many folks fishing in the pond among smaller companies, and that’s where we find missed valuations.”
_________________________________________________________

Inside the World’s Greatest Retirement Lie

Study reveals disturbing truth: Millions have been victimized by the very people they elected. Learn the Truth, See the Details. 

_________________________________________________________


At the moment, small cap stocks, particularly high growth shares, are extremely cheap, he says. “In part, that’s because uncertainty’s high,” Oberweis notes.

“But that’s always when valuations are low, and it gives us really terrific opportunities to find bargain names at reasonable prices.”

Morningstar’s small-cap growth stock index had a total return of negative 1.6 percent for the past year, compared to a positive 2.2 percent for its large-cap stock index.

In choosing stocks, Oberweis and his colleagues cast a wide net. “We look at every company under $1 billion in market cap that reported 30 percent-plus year-over-year growth in revenues and earnings per share in the last quarter,” he says.

In the S&P SmallCap 600 Index, the utilities sector was strongest last year, according to Moneyshow.com.

It lists El Paso Electric (Ticker: EE), UIL Holding (UIL), New Jersey Resources (NJR), and Piedmont Natural Gas (PNY) as strong performers in this sector.




© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Conservative Lobbyist Scoffs at Boehner's 'Dickens' Comments

Monday, 26 Jan 2015 17:33 PM

One conservative in Washington disagrees with House Speaker John Boehner when he says some groups are "beating the dicke . . .

Chris Christie Embraces Monthly Radio Show Segments

Monday, 26 Jan 2015 16:53 PM

New Jersey Gov. Chris Christie has embraced his duty as radio show personality during his monthly "Ask the Governor" seg . . .

President Donald Trump Would Build a 'Real Wall' at Border

Monday, 26 Jan 2015 13:32 PM

Real estate tycoon Donald Trump says he's got some big plans for the nation if he would ever become president, and one o . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved