RedChip’s long history of discovering tomorrow’s blue chips today started two decades ago in 1992. Noted for early calls on Starbucks, Nike, Marketwatch.com, and many others, RedChip grew to become the recognized leader in microcap and small-cap stock research. Since 2005, under the leadership of Dave Gentry, RedChip has continued its exemplary track record of identifying winning stocks.
RedChip initiated coverage of Coffee Holdings Company (NYSE Amex: JVA) on October 12, 2005. The wholesale coffee roaster and dealer, trading for only $5.49 per share, surged 435% over the following six years, reaching a high of $29.35 in July 2011.
On October 24, 2005, RedChip initiated coverage of survey firm Greenfield Online (NYSE: SRVY). At that time the stock could be purchased for $5.00 per share. By the summer of 2007 it had run up 264%, reaching a high of $18.19 per share. In the fall of 2008, while the general market was in the midst of a severe bear market, Microsoft (NASDAQ: MSFT) purchased SRVY for $17.47 per share – a 249% gain for RedChip investors.
LKQ Corp. (NASDAQ: LKQ) has been a major winner for RedChip investors. Trading for a split-adjusted $8.50 per share when RedChip initiated coverage on November 28, 2005, the stock continues to make new highs, up 315%.
Data products firm Pervasive Software (NASDAQ: PVSW) was trading at $4.20 per share on December 19, 2005 when RedChip initiated coverage. It’s traded as high as $7.41 in the past year, representing a nearly 80% gain.
Another RedChip winner that went on to be acquired was telecommunications firm Yak Communications (NASDAQ:YAKC). Trading for $3.18 at the time of our initial report on February 28, 2006, YAKC was acquired for $5.25 per share less than nine months later – locking in a 65% return for investors.
RedChip initiated coverage of oil field servicer Boots & Coots (NYSE Amex: WEL) on June 6, 2006. The stock subsequently soared 89% before being acquired in September 2010 at an 80% gain from its price at the time of our initial report.
As the financial crisis began to take hold of the broader market, RedChip continued to find winning opportunities for investors.
RedChip brought medical waste firm Sharps Compliance (NASDAQ: SMED) to investors’ attention on February 13, 2008. A $2.45 stock at the time, SMED jumped more than 375% over the next 18 months. Recognizing a changing outlook for the company, RedChip issued a sell rating shortly thereafter, helping investors lock in large returns.
Medical products innovator Echo Therapeutics (NASDAQ: ECTE) reached a post-coverage high of $4.72 in February 2011, up more than 286% from its price of $1.22 when RedChip initiated coverage on April 23, 2008. With its addition to the Russell Microcap Index in June 2012, ECTE should continue to fare well.
Elephant Talk Communications (NYSE Amex: ETAK), a growing telecommunications firm, made a steady 146% climb to its split-adjusted high of $3.94 per share. While it has pulled back more recently, it still maintains a double-digit percentage gain from its split-adjusted price of $1.60 when RedChip initiated coverage on June 24, 2008.
A leader in the mobile accessories business, ZAGG (NASDAQ: ZAGG), up over 1,200% since RedChip initiated coverage on May 29, 2008, reached a high of $16.62 in the summer of 2011 – a gain of nearly 2,200%.
Online educator K12 (NYSE: LRN) was trading for only $14.64 per share when RedChip initiated coverage on March 13, 2009. After reaching a high of $39.37 in early 2011, representing a gain of 169%, LRN is still up more than 40%.
No stranger to the mining space, RedChip initiated coverage of NovaGold (NYSE Amex: NG) on November 19, 2009. This precious metals exploration company ran up over 180% by late 2010.
Another miner that has done well for RedChip investors is South American Silver (TSX: SAC). First brought to investors’ attention on June 28, 2010 at only $0.62 per share, SAC surged more than 400% in the ensuing 10 months, reaching a high of $3.20 per share in April 2011.
RedChip initiated coverage on better-for-you food manufacturer and marketer Inventure Foods (NASDAQ: SNAK) on July 14, 2010. SNAK reached a peak of $6.67 per share, up 118%, on May 9, 2012.
Also in July 2010, RedChip initiated coverage on Craft Brew Alliance (NASDAQ: BREW) with the stock trading for less than $5 per share. This Hawaiian-based craft brewer saw its shares surge 100% to $9.90 in just two months.
Medical products and pharmaceutical company Antares Pharma (NASDAQ: ATRS) was first brought to investors’ attention by RedChip on September 16, 2010. At the time it was trading for only $1.51 per share. Today ATRS is trading at $3.32 per share, representing a gain of 120%.
Investors who built a position in these companies at the start of RedChip coverage realized big gains over the long term. But who are tomorrow’s top performers? RedChip recently issued coverage on cloud computing company Asure Software (NASDAQ: ASUR) with a price target of $15.90, representing a potential upside of over 280% from recent prices. Another company in RedChip’s current research portfolio is Longwei Petroleum (NSYE MKT: LPH), a fuel distributor capitalizing on the growth of energy demand in China. RedChip issued a price target of $5.06 on LPH, a potential upside of more than 230%. Investors should also consider ChromaDex (OTCBB: CDXC), a nutraceutical company with a price target of $1.88 and a potential upside of over 200%.
Be sure to sign up for our weekly newsletter, The RedChip Money Report. It’s the easiest way to stay informed about exciting opportunities like those discussed in this article.
Disclosure: ASUR, HGSH and CDXC are clients of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.