Best Small Cap Stocks of 2013 – Liberator Medical (LBMH)
YTD Return: 463%
It seems like whenever I watch a cable news channel, I’ll see a commercial from the next company on our list of small cap stocks: Liberator Medical (LBMH). And apparently, the marketing is working.
This small cap is a federally licensed, national direct-to-consumer provider of medical supplies, with a focus on seniors who are eligible for Medicare. The products are usually bought on an ongoing basis, which provides for stable LBMH revenues.
In the latest quarter, sales increased by 17% to $17.5 million and net income came to $2 million, up from $676,000 in the same period a year ago. The small cap also spent about $2 million on advertising, which was down from $3.5 million in the same period a year ago.
As a sign of confidence, LBMH stock even announced a dividend — hardly a staple of small cap stocks. The yield is roughly 3%.