Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has already climbed 7.5% in 2015, there's a number of small-cap stocks which have absolutely smashed market…
Sure, they're a little speculative…
Sometimes volatile…
…And their profits could be expected to bounce around wildly.
But if you can move past all that, the potential returns from these next four stocks could be well worth pursuing.
Indeed if I had $10,000 to invest in small-caps today (assuming I already had a diversified portfolio, of course!), I'd gladly consider using it to buy these next four stocks…
- Senetas Corporation Limited (ASX: SEN) is up 113% for the year after rallying 20% yesterday on no news. Senetas designs and develops high-speed network encryption devices which are sold through a global distributor, SafeNet. Whilst its profits can be lumpy, due to the timing and quantum of contracts, it's certainly one to keep an eye on over the long term.
- Yowie Group Ltd (ASX: YOW), the intellectual property rights owner of the Yowie chocolate brand, is up 42% for the year. The $106 million small-cap company is currently rolling out its chocolate to the massive U.S. consumer market through a large network of retailers such as Walmart, Safeway and more. Whilst the exact date it'll reach profitability remains the big unknown, so far, the rollout appears to be tracking along nicely.
- Netcomm Wireless Ltd (ASX: NTC) has climbed 25% in 2015 after announcing marginal revenue growth but a strong profit increase in February. The $80 million technology company continues to sign key agreements with multi-national telecoms and accelerate its push into the booming machine-to-machine (M2M) communications market.
- Bellamy's Australia Ltd (ASX: BAL) possibly stands at the beginning of the longest tailwind of any of these four companies. The baby formula maker has surged over 103% in 2015 as investors reacted to a very strong profit result earlier in the year. Although the stock trades at a price-earnings ratio of 119 its expansion into China is underway and could continue to power profits higher for many years to come.