Hunting in Ignored Corners of the Market

During those times when I'm wandering around, kicking over rocks on Wall Street, one of my occasional stock screens is what I call "undiscovered growth stocks." When you talk to the average growth-stock investor these days, they are usually all talking about the same names. They own such stocks as Saleforce.com (CRM), the gun stocks and Netflix (NFLX). I've never figured out how anyone can believe they've gained an advantage by being in a stock that's covered by every firm on the Street and traded by everyone and their brother. In addition, the herd mentality and high levels of institutional ownership makes these stocks subject to gut-wrenching declines when something happens that the consensus doesn't expect.

Over the years we have uncovered some very good stocks -- but we've looked for growing names that are off the Street's radar screen. This is a simple screen that looks for companies whose sales and earnings have risen more than 15% in the past year, and which are expected to keep growing at a reasonable rate. We then screen that list to find those under-owned by the large institutions with limited analyst coverage....624 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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