Three Top Small Cap Stocks to Own for the Next Decade

small cap stocks

If you really want to become a better investor then you need to be looking at where the smart money is heading.  You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.

That’s how the long-term wealth can be found.

You also have to be willing to hold some stocks for the long-term.  In fact, if you’re willing to hold certain stocks for years or even decades, it can lead to market-crushing returns.

Here are three small cap stocks that we believe hold incredible potential long-term:

Glu Mobile (GLUU)

Glu Mobile develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide.

The game developer behind Kim Kardashian: Hollywood, and Deer Hunter has seen its stock rocket nearly 90% higher this year. Impressive bookings, long shelf lives for its biggest hits and guidance that’s increased time and time again have helped.

Fate Therapeutics (FATE)

Fate Therapeutics is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its immuno-oncology product candidates include FATE-NK100, a natural killer (NK) cell cancer immunotherapy that consists of adaptive memory NK cells; engineered hnCD16 induced pluripotent stem cells (iPSC)-derived natural killer cell therapy candidates for hematologic/solid tumors; and engineered chimeric antigen receptor iPSC-derived T cell therapy product candidates for hematologic/solid tumors.

We like FATE here on its FATE-NK100 treatment for its natural killer cell cancer immunotherapy, and news that the FDA just accepted its investigational new drug (IND) application for FT500 — a potential natural killer cell immunotherapy.

“The safety and clinical benefit observed with a single infusion of FATE-NK100 as a monotherapy in heavily pre-treated cancer patients, including in refractory AML patients that have high leukemic blast burden in the marrow and in advanced solid tumor patients with progressive disease, are encouraging,” said Sarah Cooley, M.D., Associate Professor of Medicine, Division of Hematology, Oncology and Transplantation at the University of Minnesota and the lead investigator of the VOYAGE study.

Ceragon Networks (CRNT) 

CRNT provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services worldwide. Its wireless backhaul solutions use microwave radio technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider’s network.

This is one of the small cap gems that could benefit from the 5G boom.

By 2020, close to 10% of Americans with a smartphone are expected subscribe to 5G services.  By the end of 2023, Ericsson predicts that almost 50% of all US mobile subscriptions will be based on the new standard.

Analysts at Cowen & Company have already said, “A revolution is coming.”

In fact, they note 5G will usher in this revolution and have a “game changing” impact on society, per a Barron’s report. “Certainly, there are already several technologies including artificial intelligence, robotics, the Internet of Things, quantum computing, etc. that have already impacted our lives a great deal… 5G will serve as the ‘glue’ for these foundational technologies to come together — and that convergence will form ‘the fourth industrial revolution’.”

And by 2035, about $12.3 trillion worth of goods and services will be enabled by 5G networks.

The rollout of 5G will add approximately $3 trillion to the worldwide GDP.