Real Money’s Kevin Curran sees better days ahead for smaller companies on Wall Street.
TheStreet’s Kevin Curran sees 2022 as a pivotal year for smaller company stocks.
In the just finished year, smaller names struggled after early peaks in February.
What he’s seeing right now is that small stocks may be a good bet in the new year.
“For 2022 I think it will be time for the small guys to shine,: Curran wrote recently on Real Money.
He has a few reasons for saying so.
“This year [2021] has been such a story of blubber as the Big Tech fat cats got fatter and slurped down all the market’s extra Cat Chow, but I think the worm will turn in 2022,” he noted. “Why? The Fed is reducing its asset purchases and by all predictions (even its own, if the dot plot is to be believed) should begin raising short-term interest rates. That’s a headwind for duration-laden names such as Big Tech, but a tailwind for the smaller guys, as long as leverage is not excessive.”
Curran said he loves his SMIDs (his jargon for small-midcaps) and will keep following them, writing about them in Real Money and for OHM Research.
One smaller company he likes is Sarcos Technology and Robotics (STRC) .
“My last Fireside Chat conversation was with Ben Wolff, CEO of Sarcos,” Curran wrote. “Sarcos’ Guardian XO and Guardian XT products not only possess incredibly cool tech, but also act as the force multipliers that employers need as so many employees are leaving the workforce.”
Curran also likes Exro Technologies (EXROF) , even though it was a relatively poor-performing stock this year.
“That’s what happens when the little guy gets crowded out by the big guy,” he said. “That said, I still I love Exro’s coil-driver tech as an enabler for powertrain electrification, a project it is working on with Vicinity for VEV’s coming EV bus offering.”
While smaller stocks require a bigger outlay of time on a potential investor’s part for due diligence, and not everyone has the time or inclination to do such homework, they’re worth the effort.
In fact, Curran is fascinated by these smaller companies right now and “will continue to travel the world to research them.”
