When asked when was the best time to buy stocks, billionaire investor Shelby Davis would always reply, “Whenever you have the money!”
That is especially true for small cap stocks such as SoupMan (OTN: SOUP), High Performance Beverages (OTN: TBEV), and Mondial Ventures (OTN: MNVND). Each of these companies operates in the same sectors as blue chip stocks. But the performance can hardly be considered inferior.
As but one example, SoupMan competes with Campbell Soup (NYSE: CPB) in the food sector. But the quarterly revenue growth for SoupMan is 39.40 percent, according to Yahoo! Finance (chart below). For Campbell Soups, the quarterly revenue growth is a negative 1.80 percent.
Campbell Soup is a great company, just as many of the beverage companies that compete with High Performance Beverages are, and many of the oil and natural gas companies that compete with Mondial Ventures are. But entities such as Coca-Cola (NYSE: KO) and ExxonMobil (NYSE: XOM) are not high growth stocks. Again, from Yahoo! Finance: quarterly revenue growth for Coca-Cola is a negative 2.50 percent with quarterly growth for ExxonMobil being a negative 2.40 percent.
For income stocks, it is tough to beat Campbell Soup, Coca-Cola, and ExxonMobil.
All have above average dividend yields. There is much to be said for the role of dividend income in the portfolio of every investor. Historically, it has made up a substantial portion of the total return.
But for growth ahead, ExxonMobil, Coca-Cola, and Campbell Soups to not seem to have bullish futures, as shown by the declining revenue growth.
That is where promising small caps like SoupMan, High Performance Beverages, and Mondial Ventures have a role for investors. As small caps, revenue growth has a much more bullish outlook. The most important part of that is the product of the company. But the small cap size turns that revenue growth into a much higher stock price.
It is always the time to buy shares of a publicly traded company like that!