Consumer small-caps hitching a ride

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You may be familiar with the explorer William Lewis Herndon. In 1851, he departed under orders from the Secretary of the Navy to explore the Valley of the Amazon. The four thousand mile adventure stretched from the Peruvian Andes to the Pacific Ocean on the Brazilian Coast. Lewis' mission? Seek out opportunities for trade and commerce. 

Today we heard online retailer Amazon's (Nasdaq:AMZN) results. The aptly named company crushed analyst EPS estimates which had called for $0.33 per share. Amazon beat by 36%, delivering $0.45 a share on $5.04 billion in revenue. What's more, the company raised Q4 guidance. Shares are surging 25%.

Talk about exploring opportunities for trade and commerce. It would have been nearly impossible for the average citizen in 1841 to invest in the opportunities Herndon found in the South American Jungle. But there are plenty of ways for investors to benefit from the trends in e-commerce. And small-caps are the way to do it.

Small-cap companies are overlooked and underappreciated by many investors because it's not economical for analysts to follow them. Until the companies start to break-out, and then they are all the rage. Find them when they are taking-off, and you can ride them for handsome gains...

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