5 small stocks to bank on

Michael Corbett runs the Microcap Opportunities Fund at Perritt Capital Management in Chicago. "There's a bunch of great companies on your list," he says. "Question is, are they great investments at this point in time?" One stock that Corbett would still buy is Smith Micro Software (No.10), whose applications help cell phones play music through services such as V Cast from Verizon Wireless, the company's largest customer. Corbett notes that even though Smith's revenues have doubled in each of the past few years, the stock took a huge hit in early 2007 because of delays related to the rollout of Microsoft's new Vista operating system. And he likes Smith's heavily patented software. "Huge barriers to entry there," Perritt says. "We'll continue buying."



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