10 Speculative Small-Caps That Are Soaring

BOSTON (TheStreet) -- Stocks fell from a 10-week high yesterday on renewed concern about slower economic growth. But the performance of riskier assets demonstrates confidence in a continuous economic expansion. Here are 10 speculative small-cap stocks that made huge gains in July. They are ordered by monthly return, from big to biggest. 10. Lithia Motors LAD has advanced 34% in the past month. Lithia operates automotive franchises. It swung to a second-quarter loss of $1.7 million, or 6 cents a share, from a profit of $3.7 million, or 12 cents, a year earlier. But revenue grew 20% and adjusted profit increased 23%. Also, same-store sales, a crucial metric for retailers, jumped 26% for new vehicles and 15% for used vehicles. Lithia shares sell for a forward earnings multiple of 8.4, a 42% discount to the automotive industry average. JPMorgan JPM and Stephens rate the stock "hold", but both value it at $10, implying 17% of upside. 9. Star Scientific CIGX has returned 39% in the past four weeks. Star develops and licenses curing technologies that prevent the formation of carcinogenic toxins in tobacco. Star has posted losses for nine consecutive quarters. Its second-quarter loss narrowed to $4.9 million, or 4 cents, from $5.2 million, or 6 cents, a year earlier. Star filed applications with the FDA on Feb. 19 and Jun. 21 for Stonewall BDL and ARIVA-BDL, two "modified-risk" tobacco products. They are dissolvable tobacco lozenges, meant to be substitutes for cigarettes, snuff or pouches, with much less nitrosamine, a prevalent carcinogen. 8. Ramtron RMTR has gained 42% in the past month. Ramtron designs memory, microcontroller and integrated semiconductors. It swung to a second-quarter profit of $360,000, or 1 cent per share, from a loss of $300,000, or 1 cent, a year earlier. Revenue soared 66% and the operating margin climbed from the negatives to 3.8%. Product revenue jumped 74%. Ramtron's shares sell for a price-to-book ratio of 2.8 and a price-to-sales ratio of 1.6, 50% and 54% discounts to semiconductor peer averages. Just one firm, Blaylock Robert Van, covers Ramtron, rating it "buy" with a target of $6.20, implying a 75% return. To read the rest, head over to TheStreet.com