Power Solutions International Inc (PSIX), MAKO Surgical Corp. (MAKO): Jump In Early for the Biggest Multi-Baggers

Page 1 of 2

Wouldn’t it be great to have bought Berkshire Hathaway Inc. (NYSE:BRK.A), Microsoft Corporation (NASDAQ:MSFT) or Dell Inc. (NASDAQ:DELL) at an early stage and bagged huge returns? Of course, there’s no such thing as a free lunch and if you base your entire investment strategy on investing in small, risky companies then the result is not likely to be a happy one.

But, just for fun, it doesn’t hurt to put a small amount aside and make a speculative investment in a hidden gem with huge potential in the hopes that it will become the “next big thing.” I have unearthed three. Two of these were recently listed on the NASDAQ, and the other has been around for a while with turnaround potential.

The natural gas innovator

Power Solutions International Inc (NASDAQ:PSIX)Power Solutions International Inc (NASDAQ:PSIX) manufactures engines that run on natural gas or propane. The company’s engines support a wide range of equipment such as pumps, generators, fork lift trucks, delivery vans and buses. There is huge momentum building for natural gas because it is much cheaper than diesel and more environmentally friendly. Power Solutions International Inc (NASDAQ:PSIX) was first listed on the NASDAQ in May and with a market capitalization of $300 million has significant growth potential.

Revenue grew at a steady 9% in the first quarter, but the company is in a consolidation phase and is predicting a period of strong growth starting in 2014. Excluding non-cash warrant revaluations, the company is profitable and produced an adjusted earnings per share of $0.21 in the first quarter.

It is interesting to compare Power Solutions International Inc (NASDAQ:PSIX) against a competitor with a much bigger public profile, Westport Innovations Inc. (NASDAQ:WPRT). Westport has yet to make a profit and in the last quarter revenue actually declined.

Westport’s main focus is on larger engines for trucks, heavy plant and railway engines. Despite the unfavourable comparison with Power Solutions International Inc (NASDAQ:PSIX), many investors see a bright future for Westport Innovations Inc. (NASDAQ:WPRT). With a growing number of refilling stations, the trucking industry could see a significant migration from diesel to natural gas this year. And this should translate into significant sales for Westport’s new 12-liter engine.

With general market momentum on its side, Power Solutions International Inc (NASDAQ:PSIX) has prospects for significant growth and may surprise its better-followed competitor.

The robotic spine-tingler

Mazor Robotics Ltd. – American Depositary Shares (NASDAQ:MZOR) makes robotic guidance systems and complimentary products to carry out spinal surgery. The Israeli company has a market capitalization of $200 million and was first listed on the NASDAQ in May.

Revenue more than doubled to $4.9 million in the first quarter of 2013 as compared to $2.4 million in the first quarter of 2012. The increase was due to the sale of just six systems. The company reported a net loss of $10.5 million, but this was largely due to a fair value financial adjustment and on a non-GAAP adjusted basis this fell to a loss of only $0.4 million. On the basis of its successful NASDAQ listing, the company will receive a second tranche investment of $7.5 million from institutional and accredited investors.

This is an exciting company in a very early phase. The next big thing? Who knows, but if you are looking for a highly speculative punt, this must be a candidate.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!