If you're looking for the market's next big winners, you may want to start with these. For one reason or another, each of these small caps shrugged off some bearish dead weight and started to move again. In some cases (though not all), there was news to support the effort. Either way though, these stocks could be nice additions to your portfolio. More due diligence is suggested, of course.

Broadwind Energy (BWEN)

This bulletin board micro cap broke past a nagging ceiling around the mid-$5.00 area, but better yet, the move was made on high volume. But why? Because Broadwind is headed for a NASDAQ listing. It's surprising to see the breakout was as modest as it was, considering the effect the new listing could have one who sees the stock, and who can buy it. At $5.79, the stock is still trading at about 1/5 of its mid-2008 value when it was trading as a bulletin board equity. The company's in far batter shape now, and listed on a far better exchange.


Atheros Communications Inc. (ATHR)

Yes, this is the same Atheros that probably made your wireless network hardware and software for your laptop. That's not all they do though. They're technically defined as an integrated circuit manufacturer within the semiconductor industry. If that rings a bell, it may be because that's the precise semiconductor segment we discussed in a blog entry back on the 6th. It's a coincidence - though not a surprising one - that we're looking at one of these stocks again. Anyway...

If you want a reason to like Atheros, try this one on for size... nobody else likes it. We've seen four analyst downgrades to what are essentially 'neutral' or 'hold' calls. Since the downgrades started though, ATHR shares have gained 31%. (We won't even discuss the fact that we saw no downgrades during the point where ATHR fell from $34 to $11.) With so much room to recover coupled with so much room for analyst upgrades - as they chase performance - we just like the potential here.


Limited Brands Inc. (LTD)

The 'good' news behind Thursday's surge was a little dubious.... Limited's retail sales were 'only' down 9% in March (yoy) versus the drop of 12% most analysts were looking for. Nevertheless, the market saw the glass as half full. In fact, they've seen the glass as half full for a while now; LTD shares are up about 60% over the last month, whether it was a deserved move or not. Retail sales were fairly disappointing for most retailers.

As for Limited's future, we're still taking the stock's clue at face value, and assuming its recent recovery is correctly predicting a recovery in consumer spending. With high-end brands like Victoria's Secret and Batch & Body Works, Limited Brands may be one of the last retailers to show clear improvement, but there's a light at the end of the tunnel. LTD could more than double its current price before reaching 2008's high though, which is why it's an attractive speculation at this point.

Tata Motors Inc. (TTM)

Though the initial reaction to the good news is understandable, it may be a little overblown.... meaning shares may be destined for a very brief pullback beofore the overall uptrend is resumed.

Automotive manufacturer Tata Motors' 'Nano' - the world's cheapest car - went 'on sale' earlier this week.... at least in terms of order-taking. The first car won't roll off the company's Indian assembly line until later in the month. However, they can be ordered as of this week. And apparently, the initial orders were strong - strong enough to move the stock from $5.85 to $7.77 over the last two days.

The Nano may well be the success Tata thinks it could be, and the stock's price may well be justified. However, we'd rather see investors wait for a pullback. The rally this week is rooted in novelty - not in the numbers (which nobody really knows yet anyway). The potential of TTM has been revealed though. Now careful and disciplined trading is called for.