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Small-Cap Stocks Offer Both Potential And Risk.(THE IBD 100)(INSIDE THE 100)

Investor's Business Daily

| August 01, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JONAH KERI

The small-cap S&P 600 has climbed to the top of the heap, leading the major indexes higher.

That small-cap strength has shown up in the IBD 100. At Friday's close, 41 of the 100 stocks on the list sported market caps below $1 billion.

Take Forward Industries. The maker of soft-sided cases and accessories for cell phones and portable electronic devices recently nabbed the top spot in the IBD 100. The firm also sports the second smallest market cap, just under $200 million.

Forward blasted ahead 34% last week to an all-time high. On July 25 the company reported 560% in fiscal third-quarter earnings growth, plus a 150% rise in sales growth. Though still a relative no-name, Forward has zoomed 6 1/2-fold this year, blowing away the lagging Consumer Products-Miscellaneous group.

Forward represents just one of many niches covered by the list's resident small caps. EZCorp operates nearly 300 pawn shops in 11 states. Parlux ...

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