Good Small Cap Investment?

What is a good small cap corporation to invest in for the long term that could grow into a large cap and blue chip stock?

small cap by their nature are somewhat speculative. So for every 1 small cap that becomes a large cap maybe 100 either stay small cap or even worse disintegrate. We all hear the story of how if we have invested in Wall Mart back 25 years ago, we would be millionares today. The Motley Fools love to tell that one. Frankly it is crap. Sort of like buying a lotery ticket and hitting the jackpot. Chances are very very slim. Even if you do buy the potential Wal Mart, what do you think the probability of holding it for 25 years is? Very very small. The first time the stock doubles in price, you will sell it and take your profits.

The best way to invest in small cap companies is to buy a mutual fund by Royce funds. Their PENNX fund has returned 15% annually for the last 25 years. Work that return out on your calculator.

But if you still want a hot tip on a couple of small cap stocks that are possible candidates for the big time, here are a couple ZOLT and NVEC. Both have some chance at making the big time. ZOLT perhaps more than NVEC. ZOLT has about 10x the market cap of NVEC so pehaps NVEC might be a better short to intermediate play. Both are speculative. ZOLT is currently running in the red but is expected to be profitable very soon.

But if I were you and did not have about a $50,000 portfolio, I would stay away from these two and go instead with PENNX.

You don't get answers to this on Yahoo Answers... and the nature of the market means small companies are acquired by large ones. So I think you are coming at this from the wrong direction- a small cap can double of triple in value quite easily without becoming a large company, and almost all blue chips are very old companies that have got there through a series of chance events, sheer time, or, occasionally, by great business acumen.

But if you want blue chips buy blue chips.

Not sure what country you're in, but if in Australia Fortescue Mining might fit the bill.

Buy a small-cap index fund.

Nobody knows which small caps will grow into large cap blue chips - otherwise everyone would be investing only in those.

You invest in small caps one quarter at a time - as long as they deliver good earnings.

Right now is not a good time to invest in small caps but you can check:

http://www.tradingzoom.com/home

for fresh breakouts when the market improves.