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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 630And 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,

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