With investors wondering if the volatility is behind us and wanting to take
action with their holdings, Ive come up with eight stocks that will help you
take action with your portfolio. I have stocks to buy if youre feeling bullish,
stocks to sell if youre bearish, safety stocks if youre not sure what youre
feeling and some in between. And each of these recommendations is a small-cap
stock. Why go small-cap in this market? Well, the end of summer and autumn are
great times to buy small-cap stocks. With Wall Street coming back from vacation
and pension funds loading up on stocks for year end, small caps are the biggest
beneficiaries of increased market volume. And this year will be no different.
Each of these stock recommendations are sound and will serve you well in the
months ahead. For Those Feeling Bullish No matter what happens in the market,
there will be those investors that relish a good buying opportunity you can
count me among them. I do want to say that 500-plus-point declines for the
market dont make anyone happy, but when you can swoop in and scoop up stocks for
a bargain, happy is exactly the emotion the bulls are feeling. I have two
small-cap stocks that I see as excellent buys in this market. Not only have they
survived the volatility valiantly, they should be among the first to pick up
steam as volume returns to Wall Street. IPG Photonics (NASDAQ: IPGP ) is the
worlds leading provider of high-power fiber lasers. These lasers are used in a
variety of different devices and applications ranging from materials processing
to broadband Internet to medical pumps. Fiber lasers are the next generation of
laser technology and offer many advantages over traditional lasers. They are
more energy-efficient, they are easier to maintain and they last longer. Given
the strong business investment cycle we are in right now, companies are chomping
at the bit to upgrade current technologies, and businesses with fiber-laser
applications are no exception. Approach Resources (NASDAQ: AREX ) is redefining
the American oil industry in the very place where it got its start: Texas.
Thanks to companies like Approach Resources, we finally are becoming able to
explore our unconventional gas and oil reserves. Approachs largest and most
developed drilling property is located in West Texas, where many of the untapped
oil and gas reserves are locked in sands and shale formations. Extracting
hydrocarbons from these types of rock requires significantly more sophisticated
drilling and fracturing technologies than are used in traditional oil well
operations. Approach is on the cutting edge of this industry and, thanks to
innovations and new research, it is helping to bring down the cost of exploring
and developing these oil and gas deposits each year. The companys success lies
in identifying low-risk properties, then implementing its advanced technologies
at the lowest possible cost. For Those Feeling Bearish If you see the markets
recent volatility as a sign its time to dump stocks, Im not going to talk you
out of selling. There are plenty of stinkers in this market, and while I wouldnt
recommend getting out of this market entirely, I do have a few stocks that you
should sell if youre currently holding onto them. AK Steel (NYSE: AKS ) is the
first stock you should sell if youve got the itch to dump stocks. This one-time
metals and mining powerhouse commanded $70 per share back in 2008, but after a
terrible fall that year, it hasnt crossed the $30 mark since. Earnings have been
erratic to say the least, and analysts have decreased their earnings estimates
86% for the upcoming quarter. Sell! TiVo (NASDAQ: TIVO ) is another stock you
can sell with confidence. Earnings are expected to be down over last year, and
in this market you cant afford to own companies that arent growing sales and
earnings. This stock has traded in a narrow range for a year now, and I dont
expect it to break out anytime soon. Get rid of this one if you own it.
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