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EnigmaDude (57.02)

My top 3 home run picks for 2011



December 29, 2010 – Comments (9) | RELATED TICKERS: SAND , LEI , MGIC

OK, so I can't help myself after reading UltraLong and others' predictions.  And I am looking for some feedback on my selections.  Here are 3 micro-cap growth stocks with momentum and what I consider to be a strong business model and which I expect to significantly outperform over the next 12 months or so.  Each of these picks I own in my real life portfolio.

First is a gold-oriented pick and that one is Sandstorm Resources (SNDXF.PK).  It is a streaming precious metals business and CAPS member speedybure has an excellent write-up on it here.

Next is Lucas Energy, Inc. (LEI). With a market cap of only about $30M and with only 4 employees, this is quite a speculative oil and gas play.  I first learned about this company from an article by Josh Young in Seeking Alpha. Shortly after I read the article I came across a press release with some encouraging news:

Lucas said an internal report revealed the potential reserves of its Eagle Ford assets were an estimated 4.3 million barrels of oil equivalent as of Sept. 30, compared with the 2.7 million as of April 1 as estimated by a consulting firm.

The net present value, at a 10% discount rate, of the potential reserves was $83.6 million, compared with the earlier $51.9 million estimate by consultant Forrest A. Garb, the company said.

Read more: Lucas Energy Up; Eagle Ford Reserve Estimates Raised - Investing - Dow Jones Newswire -

And my 3rd big-hitter for 2011 is a technology stock - Magic Software (MGIC).  Some might think that 2010 was the big year for this stock, and they would be correct!  It has shot up in the past few months from a low of $1.55 to over $8 and now is trading for closer to $6.  However, I feel that the growth of this Israeli software company is just beginning and the demand for their products will rise exponentially as businesses look for ways to create efficiencies through system integration and as they furrther embrace the cloud computing paradigm.

I would look for a better entry point (below $5) to get in if you are looking to get long on this company, but I believe that within a year this stock could easily trade for upwards of $10 and over the next 5 years it could run substantially higher.

Thanks for reading, Fool On,and Happy New Year!


9 Comments – Post Your Own

#1) On December 29, 2010 at 1:37 PM, jrod87 (93.54) wrote:

FBP, UWBK, and yes FMCC.ob ...theres my 3 -jrod

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#2) On December 29, 2010 at 2:13 PM, Bays (29.31) wrote:

I bought some Sandstorm warrants so that tells you how I feel about that one.

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#3) On December 29, 2010 at 3:04 PM, awallejr (35.81) wrote:

I bought a couple thousand shares of Sandslorm after researching it as a result of reading this MF blog

Bought it at basically 68 cents and so far from a percentage move it is doing nicely.

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#4) On January 04, 2011 at 7:31 PM, Pennyperson (< 20) wrote:

LEI all the way - not so spec - trust the gut and I like it. Nice call.

Did you really find out about Josh via Seeking Alpha?

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#5) On January 04, 2011 at 7:35 PM, Pennyperson (< 20) wrote:


I'm on board with ya, but need to complete a little more DD before the back flip =)

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#6) On January 05, 2011 at 4:04 PM, EnigmaDude (57.02) wrote:

Thanks PP - not only did I learn about Josh from SA, but I learned from you about some of the oil and gas picks that led me to the article he wrote!

Another new speculative pick that I just took a sizable position in (for me) is Artifical Life (ALIF.OB).  They develop mobile apps for smartphones.  Even TMFUlltraLong likes them!

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#7) On April 05, 2011 at 2:14 PM, EnigmaDude (57.02) wrote:

Sandstorm Gold SNDXF.PK has now broken the $1 mark.  Not yet a "home run" but looking at a 50% gain since I bought shares in real life late last year.

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#8) On April 05, 2011 at 7:14 PM, Bays (29.31) wrote:

Me too,,, and the warrants are doing even better!


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#9) On June 18, 2011 at 2:28 PM, speedybure (< 20) wrote:

I posted a Sandstorm Gold update, nearly no one is aware with regards to St.Elena Expansion and Black Fox

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