How to select good small cap stock picks

 There are companies which are not as large as the blue chip stocks and neither are these large market capitalization companies. The share price of these can vary anywhere between less than a penny to above dollar five. Now that said there may be a chance that stocks may be calssified as penny stocks bit ideally they are different than the penny stocks and the reason is that penny stocks will generally do not have nay revenue generating business and these are mostly unknown shell companies whereas in the small cap space these stocks are the best ones as these are real revenue generating companies and have a balance sheet. The only challenge is to have that right strategy to find one small cap stock that can be a winner. Small cap profits can be there provided you can do enough research and track the market for a long term. 

Nasdaq small cap definition is that such stocks which are not included in the national market of NASDAQ. These small caps according to NASDAQ can be $250million to $1billin of market capitalization.

Therefore here is my list top picks and these picks are solely based on my research and my thought process. My thought process is generally that in this time of depression and bad economy there are a lot of companies that are very depressed and have very low earning but in the long run you know that these companies will perform much better and that will mean that if you invest right now you can have multiple digit returns. The challenge though lies in sifting through that mountain of data and finding the right one.

 That said there are many strategies to find the best small  cap stock picks and the main strategy in that is to find out the way you will be doing another blue chip high growth large cap companies and that will mean either technical analysis or the fundamental analysis. Now I agree that it is generally very easy to find the shares in the large cap area with the fundamental analysis as there is large amount of data available in the public domain. But that is where your research counts and if you are able to find out about some gems you can make a killing in the stock market. 

Some of the names of the small cap picks are the Capston Turbine and ABX holdings. Pharma stocks I would rate as the best of the stocks simply because these stocks can be big winner and are very specific based on the kind of industry they are in. Once FDA approval and one new drug discover or molecule discovery can literally send these small caps shooting and making you good money. Acura Pharma is the name which comes to mu mind. It is the small cap biotech stocks which have made me a good amount of money over the last few years. Make sure that you have the FDA filing list with you and track the pharma and biotech stocks to make good money from small cap stock picks.

Small cap solar is also something I am tracking right now and it may big in coming times with global energy crisis.

Where to buy these small cap stocks?

You can buy these stocks at the Over the counter bulletin board or then OTCBB and also on the NASDAQ penny stock market or the small cap zone.

Alternatively you can also invest in small cap etf or the small cap mutual funds. Infact the small cap market is big and that is why you will generally see that there are indexes which track only the small cap stocks. Tthe main ones are the small cap S&P 600 index or the Russell 2000 small cap index.