How to Find Small-Cap Investment Gems

By Paul Mladjenovic

If you’re looking for small-cap stocks, consider starting your search with top organizations that may already have those stocks in their portfolios. If experts chose small-cap stocks for an exchange-traded fund (ETF) portfolio or for a mutual fund that specializes in small-cap stocks, those stocks probably offer a good starting point for your research.

To look for micro caps and small caps, go to sites such as the following (along with Appendix A):

  • Nasdaq: This is not only a premier site for stocks but also the hub of activity for small-cap stocks. You can find stock reports and SEC filings for virtually any small-cap (or larger) company.

  • OTC Markets: Find small-cap stock listings and prices as well as the most active small-cap stocks.

  • Stockwatch: This very active site is packed with news and views of stocks in general, but it emphasizes small-cap stocks.

  • The SmallCap Network: This extensive site has research and reports on small-cap stocks.

  • Small Cap Directory: This site is a search engine for doing research on small-cap stocks.

Also, consider alternatives to directly owning small-cap stocks. Buying ETFs that have a diversified portfolio of small-cap stocks can be a safer and more convenient way of adding small-cap stocks to your portfolio.