A Little-known Small Cap Stock Ready for Huge Growth
Most stocks continue to perform poorly in these uncertain times. That is why it is time for you to start preparing for our next growth cycle, and by stocks when they are very cheap. Investors should be making strategic investment decisions when the market is down. You should be asking yourself, “What companies are going to come out of this recession on top?” because companies are made and broken in recessions.
One company has maintained relative stability, even in rough times, and it has been able to stay under the radar. 21st Century Holding Co. (TCHC) is a property and automobile insurance company based in Florida. 21st Century has just started a new marketing campaign to gain new customers. You may have seen the television ads on CNBC and a few other channels advertising 21st Century Insurance.
21st Century Holding Co. (TCHC)
Price 2/2/09 : .28
Market Cap: million
Shares Outstanding: 8 million
This is a great stock for the more speculative side of your portfolio. They have a Market Cap of only million and only 8 million shares outstanding (less than 7 million not held by insiders). With such a low number of outstanding shares and a small market cap, any kind of public interest/demand for the stock will cause this stock to rocket straight up.
This is something that both William O’Neill (founder of Investor’s Business Daily) and Jim Cramer (Mad Money, etc.) agree is great for small cap investing. Small cap stocks with a low number of outstanding stocks (usually < 15 million) shoot way up when it is discovered.
If 21st Century gains a large number of new customers with its new marketing initiative or improves their business strategy, this company could enjoy a ride up to a 0 million+ Market Cap. At that market capitalization, the stock price of TCHC would be .25! At market close on Feb.2, 2009 TCHC’s stock price was .28. That’s a theoretical gain of 630%.
Jared Schneider is the owner and current writer for InvestorPitStop.com.
His writings have been published on SeekingAlpha.com, and is a featured Expert Author for EzineArticles.com. He is also a luxury real estate professional for Century 21 Elite Properties in Orlando, FL.