Best Small Cap Stocks of 2013 – Daqo New Energy (DQ)
YTD Return: 317%
Daqo New Energy (DQ) is a leader in the world of small caps stocks. DQ (no, not Dairy Queen) is a company that sells polysilicon — which is key for solar installations — to the Chinese market. No doubt, business has ramped up in the past couple quarters. For example, in Q3 the orders were 29% above guidance.
Something else: For contracts snagged in September, Daqo New Energy filled up 70% of capacity for its Xinjian facilities. Given this, the small cap is investing in expanding its production facilities.
But DQ also has also been able to achieve positive operating cash flows, which has traditionally been tough for solar operators. Although, net losses continue to remain at hefty levels. For the year so far, they have added up to $212.8 million. Still, DQ stock is still one of the best small caps so far in 2013.