The Micro Cap Superstars

Ian Cassel Blog Leave a Comment

Micro Cap companies are thought to be the scammy underbelly of the public markets.  Most “smart” investors don’t even look at them, and that is exactly why there is such an opportunity.  You bet on the right macro trend and the right micro cap company in the middle of that trend, and you can get rewarded more in a year then if you bought and held Apple (AAPL) 5 years ago. The key has always been Finding them and Timing them.

Even during bearish macro market environments, there are always a select few micro cap companies that buck the trend.  ZAGG Inc (ZAGG) is the perfect example of this.  In September of 2008 ZAGG was trading at $0.65 share and moved to $3.00 per share by April 2009 during the worst macro environment since the great depression.

I track over 200 micro cap companies that I find interesting.  Of these companies I created a list of “Listed” (Nasdaq/NYSE Only) micro cap companies that have performed very well over the last 12 months.  I also have calculated their returns from their 52 week lows to today’s market prices.

eGain Communications (EGAN), Current PPS $6.70, Up 600% from 52 week low:  eGain is the leading provider of cloud and on-site customer interaction hub software. For over a decade, eGain solutions have helped improve customer experience, optimize service process and grow sales — across the web, social, and phone channels. Hundreds of the world’s largest companies rely on eGain to transform their fragmented sales engagement and customer service operations into unified Customer Interaction Hubs (CIHs).  One analyst follows the stock with a $7.20 PT.  The analyst estimates are for FY 2012 revenues to increase 28% to $56m, and EPS of 0.36 for FY 2012.  Williams Equity Analysis wrote a good piece on EGAN [HERE].

Genetic Technologies (GENE), Current PPS $4.50, Up 600% from 52 week low: Genetic Technologies was an early pioneer in recognizing important new applications for “non-coding” DNA (Deoxyribonucleic Acid). The Company has since been granted patents in 24 countries around the world, securing intellectual property rights for particular uses of non-coding DNA in genetic analysis and gene mapping across all genes in all species. Its business strategy is the global commercialization of its patents through an active out-licensing program and the global expansion of its oncology and cancer management diagnostics portfolio.  No analysts follow the stock.

Majesco Entertainment (COOL), Current PPS $3.20, Up 575% from 52 week low: Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the company is focused on developing and publishing a wide range of casual and family oriented video games on all leading console and handheld platforms as well as online, social networks and mobile devices. Product highlights include Zumba® Fitness, Cooking Mama™, Alvin and the Chipmunks, and Hulk Hogan’s Main Event.  Three analysts cover Majesco with an average $4.50 PT.  Analysts expect FY 2011 revenues of $126m (up 67% from last year) and EPS of $0.40 (up from a loss of 0.04 last year).  Mark Gomes wrote a good piece on COOL [HERE].

TeamStaff (TSTF), Current PPS $2.10, Up 500% from 52 week low: TeamStaff serves clients and their employees throughout the United States as a full-service provider of logistics and healthcare support services. TeamStaff specializes in providing high quality healthcare, logistics, and technical services to Federal agencies and the Department of Defense.  No analysts cover the stock.  Brian Nichols wrote a good piece on TSTF [HERE].

ICAgen (ICGN), Current PPS $6, Up 500% from 52 week low: Icagen is a biopharmaceutical company focusing on the discovery, development and commercialization of orally-administered small molecule drugs that modulate ion channel targets.  Pfizer (PFE) acquired ICGN in September, paying $6 share in cash.

Mitek Systems (MITK), Current PPS $11.00, Up 360% from 52 week low: Mitek is the leader in mobile-imaging solutions, achieved through 25 years of R & D, patented technology and extensive experience in extractive imaging.  The company invented and patented leading software solutions that allow consumers to use the cameras on their smartphones and tablets to deposit checks, pay bills, get quotes and transfer balances … all by just snapping photos of documents. Current products include Mobile Deposit®, Mobile Photo Bill Pay™, Mobile Balance Transfer™, Mobile ACH Enrollments™, Mobile Receipt™ and the Mobile Imaging Cloud™ platform.  Two analysts cover Mitek with an average $12 PT.  Analysts on average expect FY 2011 revenues of $10.5m and EPS of $0.03, and expect FY 2012 revenues of $25m and EPS of $0.24.

Flotek Industries (FTK), Current PPS $5.70, Up 250% from 52 week low: Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment. It serves major and independent companies in the domestic and international oilfield service industry.  One analyst covers Flotek with a $14 PT.  The analyst expects FY 2011 revenues of $235m and EPS of $0.34, and expects FY 2012 revenues of $306m and EPS of $0.53.

The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $500m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at is quality membership and quality stock ideas.  If you are an experienced micro cap investor, feel free to Apply today.

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