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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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!