5 Hot Small-Caps to Buy on a Dip this Summer

Get ready to swing for the fences -- but wait for your pitch

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Based on the recent triple-digit moves in the Dow Jones Industrial Average, volatility could heat up this summer on the stock market. But investors shouldn’t consider this as a sign that they should throw in the towel — on the contrary, buying some great picks on a pullback could be one of the best moves you can make in the next few months.

diamond in the rough 630 300x200 5 Hot Small Caps to Buy on a Dip this SummerAnd remember, volatility is only bad if you’re holding on to investments caught in a downdraft. As we’ve seen time and time again, small and agile stocks can manage to find big opportunities in a narrow market based on innovative products or shrewd leadership.

Take electric vehicle manufacturer Tesla (TSLA), which has seen its stock soar 200% this year on bright headlines including its first quarterly profit; full, early repayment of a government loan; and continued demand for its iconic Model S sedan.

I wouldn’t buy Tesla now, of course, with shares being so frothy. But there are other small companies poised for a breakout … if you know where to look.

Here are five such small-caps that are red-hot, and could generate big-time profit for investors who buy them on a dip:

Article printed from InvestorPlace Media, http://investorplace.com/2013/06/5-hot-small-caps-to-buy-on-a-dip-this-summer/.

©2015 InvestorPlace Media, LLC

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