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Hidden Gem #2

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They say it's not the size of the man in the fight but the size of the fight in the man. This year, that's especially true on Wall Street as smaller stocks trounce their bigger brethren.

These little powerhouses have as much tenacity as Andy Hardy or the Bowery Boys as they stare down their much larger adversaries; the credit crunch and higher oil prices.

Fast Money's Jon Najarian may not be a small man, but this big dude knows small stocks. And under his microscope right now you’ll find MGIC Investment Corp .

This mortgage bond insurer has missed out on the small cap party this year battered by nearly 70% as more mortgage bonds blow up. But MGIC is toughening its lending standards and raising rates.

"The CEO bought shares around $6.80 give or take,” says Jon Najarian. “I think it has good upside.”

And that’s why our Dr. J to thinks there this tiny name could be due for a turnaround.

Read More:

> Hidden Gem #1

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Trader disclosure: On Aug 26, 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); Tatro Owns (C), (GS); Quint Tatro Is The Principal Of Tatro Capital; Tatro Capital Owns (QQQQ), (SSO), (SPY), (FXI), (XLF), (IHI); Jon Najarian Owns (C), (EXM), (JPM), (UNG); Jon Najarian Owns (AAPL) Calls, (MRVL) Calls, (RMBS) Calls, (EWH) Calls; Jon Najarian Owns (PTEN) Call Spread; Terranova Owns (AAPL), (RIMM), (EOG), (VLO), (YHOO), (NOV), (KOL), (GS), (POT), (SA), (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)