I would first like to start out and say I was very pleased with stock market for the week. It has been the first positive week in quite some time. Reassurance is always good with a volatile market. Now let’s move onto the goodies!
Today I would like to bring (WPRT) Westport Innovations back on the map. It has been about a month since I mentioned this small cap stock. WPRT currently has a $656.54 million market cap. That’s very small in comparison to some companies. That means there is plenty of room to grow!
If you’re new to my blog please follow the link below to get up to speed on WPRT.
http://stockmarketmonster.blogspot.com/2010/08/westport-innovations-w-p-r-t.html
So over the past month this stock hasn’t done a thing! And I mean nothing! I want to reassure you that small cap stocks like WPRT come in and out of favor as much as the weather changes in Michigan. Small cap stocks are volatile in nature, but the reward to be able to weather the storm is well worth it.
Right now WPRT doesn’t have any catalysts to move the stock higher. I’m not saying that it won’t on Monday. I’m saying that the perfect buying opportunity is when a stock has been quiet for a period of time. Small cap stocks volume is driven by news. When there is no news the volume drops, hence the price of the underlying company goes down.
The last time I spoke of Westport the stock price was at $18.18. Its current closing price as of Friday was $16.62. So to all of you who were late to this article you haven’t missed a thing. You’re actually in a better position to profit from WPRT. The current price does not reflect the true value of WPRT. Just a couple months back this stock hit a 52 week high of $21.34. The only thing that has changed is the energy bill has been put on hold since the government couldn’t make up their minds before they went on vacation. On a positive note Westport had a great earnings report. Good enough to excite me!
The outlook is still positive as I have said before. Even without the passage of the current energy bill under review Westport still makes money. Just keep that in mind. If you haven’t already bought WPRT now is a perfect time to buy a few shares. Small caps are great companies in the making and take time to develop. Be patient and allow for small cap companies like WPRT to grow. With the elections coming up in November the energy bill will be back on the table soon enough! Until then position yourself for the next big move and wait for the news to roll out! That is how money is made!
Also, I’m curious to know what others are investing in at this time. I would appreciate your response to the questions listed below. This blog is informational, but it was also created for a chance to interact with others about investment ideas and build a community of stock junkies!
1. What are your current holdings?
2. Do you currently have any stocks on your watch list?
3. Have you noticed any positive trends in any particular sector?
4. What’s your favorite stock?
5. If you had enough money what one stock would you like to invest in?
Your response is greatly appreciated!
Have a great Sunday! Go Lions!
Clay-
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