The large-cap, big name stocks are all you hear about in the media. You know the names… Apple (APPL), Google (GOOG), and Caterpillar (CAT) are just a few. After listening to the hype, you’re probably salivating to buy some of these big name stocks.
However, $600, $500 and even $120 stocks are just out of most investors reach…
If you can’t justify paying the big price tag, not to worry… we have a small-cap penny stock alternative you can buy instead. Not only will it cost less, you’ll be able to buy more shares!
This week, we’ve found a great alternative to insurance broker Marsh and McLennan Companies (MMC).
As we close out 2012, one of the comeback stories of the year is clearly the insurance brokerage industry. And one of the top players in the industry is Marsh and McLennan. Not only does MMC generate over $11 billion in annual revenue, but they’re poised for growth in areas of risk, strategy, and human capital.
But for the investor looking for low-priced stocks in this industry, MMC doesn’t exactly fit the bill…
With a market well over $18.6 billion, and a stock price of around$34, there are other lower-priced alternatives to MMC. One of the top standouts in this space is a Crawford and Company (CRD-B).
Not only is the stock price much lower at around $7.75, but their stock has performed equally as well as MMC.
Take a look at the chart below to see for yourself…
Clearly Crawford has put its worst days of the year in the rear-view mirror. In fact, this penny stock has reached new highs right into the final trading day of 2012.
If you’ve never heard of them, CRD-B is the world’s largest independent provider of claims management solutions. In fact, a number of the companies I worked with in the past use Crawford’s services on a regular basis.
So why the big move?
In early November, Crawford’s management announced record third-quarter earnings. Consolidated revenues in the third quarter totaled $302.1 million, which represents a 7% increase over 2011. What’s more, third-quarter income jumped over 19% reaching $18.2 million.
So why buy the stock now if it’s already seen such a huge jump? And how can a top last quarter’s record-breaking performance?
Two words… Superstorm Sandy.
There’s no doubt that most big-name insurance carriers run a tight ship when it comes to staffing their claims department. And that’s where Crawford comes in.
Before wrapping up, it’s important you know about Crawford stock. Just for the record, below is the explanation directly from the company’s press release…
“The Company’s shares are traded on the NYSE under the symbols CRDA and CRDB.
The Company’s two classes of stock are substantially identical, except with respect to voting rights and the Company’s ability to pay greater cash dividends on the Class A Common Stock than on the Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless approved by the holders of 75% of the Class A Common Stock, voting as a class.”
There’s no question that super storm Sandy will drive huge revenue gains for CRD-B. and you will want to pick up shares now before the stock breaks over the $10 level… because that’s where I see it heading.
Keeping you one step ahead,