Hidden Gem #1
Size matters - but money matters more. And unless you've taken a microscope to this market you probably stepped right over the one class of stock that's quietly beating the S&P.
We’re talking small cap and it's time to take a closer look at the tiny tickers that are topping the tape.
While the Big Board racked up nothing but big losses over the last 6 months the Russell 2000 - an index of companies that average a mere $1 billion in market cap - is up a whopping 6%!
And one lesser name that's been leading the way is Digi International.
With a grand total of 500 employees this little networking company turns outdated information systems such as checkout counters, factory floors, and even traffic lights into 100% wireless wonders, explains Pete Najarian.
It’s a small Minnesota based company with a great balance sheet, Najarian adds. They have little debt and a great cash position.
And insiders are all getting into this stock which is why it could be a smart buy right now, Najarian concludes.
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Trader disclosure: On Aug 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (CSCO) Call Spread, (RIMM) Call Spread, (TIE) Call Spread; Pete Najarian Owns (AAPL) And Is Short (AAPL) Calls; Pete Najarian Owns (XLF) And (XLF) Puts And Is Short (XLF) Calls; Pete Najarian Owns (LEH) Put Spread; Pete Najarian Owns (MS) And Is Short (MS) Calls; Jon Najarian Owns (AAPL), (C), (RMBS); Jon Najarian Owns (TIE) Calls; Jon Najarian Owns (BRCM) Call Spread; Jon Najarian Owns (LEH) Put Spreads, (STI) Put Spreads; Terranova Owns (YHOO), (AAPL), (RIMM), (SA), (VLO), (EOG), (NOV), (POT), (X), (KOL), (GS), (FCX); Terranova Owns (AIG) Puts
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC