Small-Cap Stocks Rallying in 2012

Small-cap stocks are outperforming the market, according to data released by Reuters. The Russell 2000 Index, composed of the 2,000 largest small-cap stocks by market capitalization, is up 34% since its closing low on Oct. 3. In comparison, the Dow Jones Industrial Average and the S&P 500 are up only 21% and 23%, respectively.

“This could be a year in which jumping on the small-cap bandwagon–even after the double-digit gains–could still work in investors’ favor,” writes Reuters author David Randall.

Analysts attribute the gains primarily to strong economic growth data. U.S. employers added 243,000 jobs in January, and the unemployment rate dropped to 8.3%, the lowest level in three years. During the fourth quarter of 2011, the U.S. economy grew at its fastest pace in a year and a half.

Five RedChip stocks that have outpaced the Russell 2000 since Oct. 3 are Local Corp. (NASDAQ: LOCM) and Cross Border Resources, Inc. (OTC QX: XBOR), both up around 35%; Andover Mining Corp. (OTC BB: AOVTF), up nearly 40%; Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH), up almost 70%; and Asure Software, Inc. (NASDAQ: ASUR), up 152%. Another RedChip stock, Lentuo International Inc. (NYSE: LAS), is up 32% from $2.88 to $3.81 over the past 30 days.

To learn more about some of these companies, register today for the RedChip Small-Cap Virtual Conference, taking place Feb. 15-16. The conference will feature executive presentations and Q&A sessions from 13 emerging companies. You can view a full presentation schedule and reserve your spot at http://www.redchip.com/virtualconference.

Disclosure: The subject securities are clients of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.