My #1 Small-Cap Stock for April

March 26, 2009

In its latest quarter, the company’s earnings rose to $2.4 million or 5 cents a share compared with a loss of $1.8 million or 4 cents a share in the same quarter a year earlier. During the same period, sales rose 25.9% to $83.2 million compared with $66.1 million, due to a 46% surge in handgun sales from strong consumer demand as well as law enforcement purchases.

The sales of handguns and tactical rifle sales offset a decline in hunting products sales, which tend to follow consumer discretionary purchases and typically are weak during recessions. The analyst community was expecting 2 cents per share on sales of $74.1 million, so this top stock posted a stunning 150% earnings surprise and a 12.3% sales surprise! So much for being a victim of weak consumer spending—this stock clearly has a brand that withstands tough economic times.

What’s more, first quarter earnings season is just around the corner. I expect a similar showing from this stock when it releases it’s next round of quarterly numbers—and a big bump in the stock price as a result! So don’t delay your purchase of this pick because you don’t want to be late to this buying party.

I’m currently working on the April issue of Emerging Growth, which will be sent out to all subscribers after tomorrow’s close. This is a crucial issue to understanding the events unfolding on Wall Street and across the entire economy, with some important buys and sells to position you for the biggest profit potential. In addition to the specifics behind this stock, I have another equally exciting buy in the education sector to share with you. If you’re not a subscriber, I urge you to sign up today so you can receive this issue.

Your subscription includes access to our Website, earnings service, hotlines, Q&A and of course, our legendary Emerging Growth Buy List. And for a limited time only, I’ll also throw in a crucial Special Report: Five Stocks that Could Double Your Money in 2009. But you have to act now, because this special offer expires Saturday!

The stock I have just featured today is only one of 35 outstanding companies on our current Buy List. Remember, the average Emerging Growth stock is still posting 35.3% annual sales growth and 194.7% earnings growth even as the rest of Wall Street struggles to break even!

As a loyal reader of What’s Working, I’m offering you a special $99 trial offer so you can try Emerging Growth for three months and see this performance for yourself. I strongly urge you to act because I don’t expect to see these bargain valuations last much longer. It’s only a matter of time before the rest of the market sees how powerful these stocks are and pushes them up with tremendous buying pressure. Right now is the time to strike!

Find out the small-cap stocks I think are ready to surge by signing up NOW. Take advantage of our $99 special offer and get ready to profit this earnings season! At Emerging Growth, we only buy stocks that are growing their sales by at least 25% a year and their earnings by at least 50% a year. No exceptions, no excuses—no matter how difficult the broader market may get. You can be sure you have a powerful lineup of stocks with rigorous standards like this.

In the next issue of What’s Working,on Thursday, April 2. In it, I will offer an in-depth look at this upcoming earnings season and what we can expect from some flagship stocks. I’ll also explain why earnings are so important to investors like you when building a portfolio—and how following the numbers are your best bet to finding the future market leaders!

I look forward to talking with you then. Take care!

Sincerely,

Louis Navellier