5 Small And Medium-Cap Stocks Under The Radar And Ready For A Rebound

 |  Includes: DSX, DXTR, ELON, NMM, TNP
by: BubbleBustInvesting

Investing in small- and medium-cap stocks (less than one billion dollars in market capitalization) is always a high-risk proposition. That’s why it is suitable for aggressive investors. But with high risk comes high rewards, especially when small stocks are purchased during a market correction when panicking investors sell the good, the bad and the ugly.

Here we have identified five stocks that trade near multiyear-lows, offering investors the potential for high gains, especially if the market rebounds:


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A fallen angel of the Greek sovereign debt crisis, Tsakos Navigation (NYSE:TNP) - $5.22: A large oil tanker owner and operator with solid financials and an experience management team. The company has $262 million in cash and $91million free cash flow and pays an 11.6 percent dividend.

Another fallen angel of the Greek crisis, Diana Shipping (NYSE:DSX) - $7.99: A leader in dry bulk shipping with a P-E of 5.59, an operating profit of near 50, and $373 million in cash, and a major beneficiary of a rebound in the Chinese economy.

A third fallen angel of the Greek crisis, Navios Maritime Partners (NYSE:NMM) - $15.25: A diverse shipping company with a P-E of 12.69, a profit margin of 42.7 percent, and a dividend of 9.60 percent.

Echelon Corporation (NASDAQ:ELON) - $4.83: A good play in the smart grid, an electricity network that applies digital technology to monitor and regulate the demand for and the supply of electricity. Network infrastructure products from Echelon Corporation, for instance, connect everyday appliances, such as air conditioners, with thermostats and electric meters, allowing both utility companies and customers to monitor and adjust energy demand from remote locations. Echelon’s alliances with Cisco Systems (NASDAQ:CSCO), IBM, and General Electric (NYSE:GE) make it a good candidate.

Cardica (CRDC) - $2.39: A start-up still losing money, Cardica, is a highly speculative stock. But it offers great promise, as it is in the development of an endoscopic micro cutter product line for use by thoracic, bariatric, colorectal, and general surgeons in robotic surgery. Cardica’s alliance with robotic surgery leader Intuitive Surgical (NASDAQ:ISRG) raises the chances for launching a blockbuster product or even becoming an acquisition target.

Disclosure: I am long ELON, CRDC, TNP.