Low-priced stock investments tend to be high-risk because the companies in which you're investing are usually new and have little or no proven track record.
But by the same token, small-cap and micro-cap stocks can also yield explosive growth potential. The next Microsoft or Sony could be somewhere on the over-the-counter market right now and selling its shares for mere cents.
So, how do you invest in the right companies and avoid the wrong ones? Lots of research and due diligence.
Market reports and resources like the QualityStocks.net Daily Newsletter, which contains stock tips from hundreds of online investment newsletters, can be extremely useful for exactly this purpose. Simply keeping up to date with the latest happenings of quality up-and-coming companies is a major step toward developing an outstanding investment portfolio.
Here are five companies in our "Ones to Watch":
Hybrid Technologies, Inc. (HYBT.OB): Hybrid Technologies is a development-stage technology company that is focusing its resources and efforts on the development and marketing of lithium-powered vehicles, products and commercial and residential properties. Everything from scooters, bicycles, mopeds and motorcycles, to cars and homes are being converted successfully to zero-emission, lithium-powered vehicles and facilities.
Nascent Wine Company Inc. dba Nascent Food Service (NCTW.OB): Quickly becoming one of Mexico's largest food distributors, Nascent markets and distributes more than 2,000 national and proprietary brand foods and non-food products to over 1,400 customers throughout Mexico.
Intelligentias, Inc. (ITLI.OB): Through a group of data intelligence companies, Intelligentias provides homeland security products to law enforcement agencies, telecommunication companies and Internet service providers worldwide. The company, based in Redwood City, CA, has technology partnerships with Oracle, Micro Strategy and Business Objects, among others.
CanAm Uranium Corp. (CAUI.OB): Formerly known as Boulder Creek Explorations, Inc., this Las Vegas based company explores natural resource properties and holds an option to acquire up to 80 percent interest in eight uranium projects comprising 27 mineral claims. As these acquisitions become finalized, watch for its stock to climb.
Reed's, Inc. (REED.OB): In the tradition of Samuel Adams and Ben & Jerry's, this soda, candy and ice cream company saw many of its loyal customers investing in its initial public offering. Reed's "new age" beverages include natural sodas, fruit juices and sports drinks sold through specialty food distributors and supermarket chains. The company was founded in 1987 and is based in Los Angeles, CA.
Cathy Rankin hosts the Quality Stocks Daily News Segment each day at QualityStocks.net, and she also works as an independent business consultant to select companies nationwide. Cathy will be active with "The QualityStocks for Women" Newsletter. This NEW newsletter will be geared toward investment-minded women and will provide tools and financial planning for families and individuals. To sign up for the newsletter, log on to http://Signup.QualityStocks.net.