Spotlight Stock #9 From Our Microcap Quality Index (MSMqi)

Spotlights are stocks from our Quality Index with at least 50% near-term upside and long-term multibagger potential.

The 9th stock we are adding to our Spotlight Index has experienced a sharp pull back, despite having great fundamentals and at a time where the company is about to enter an extended period of strong sales and EPS growth, on a quarterly and annual basis.

The reason for the drop in the stock is because the company completed a secondary equity offering below its market price. These are some of my favorite short-term by the dip opportunities to track.

As a reminder, our Spotlight Quality Index pinpoints stocks from our MS Microcap Quality Index (MSMQi) that we think have at least 50% near-turn upside and long-term multibagger upside.

So far, 4 of the 8 previous Spotlights hit the 50% return mark at some point after being added to Spotlight Index, while another one touched 44%.

Shares of our 9th Spotlight stock should bounce back pretty aggressively once the market fully absorbs the extra shares from the offering. A full recovery of the dip would translate into a near 50% return.