Here comes the final month of the year. The holiday lights are up, it’s hit single digits in Minnesota, and the park is full of kids sledding. With the familiar December traditions in full blast signaling the holiday season, the kids know it’s time to have their wish-lists ready. (I think my kids have had theirs done since Halloween, although it remains an iterative process.)
As small-cap investors, December offers us our own kind of wish list opportunity. Year-end tax-loss harvesting often creates artificial selling pressure, letting us scoop up fundamentally sound companies at a discount. While most people are fighting mall crowds, I'll be doing the kind of shopping I actually enjoy—hunting for quality small caps on sale.
The small-cap corner of the market is dynamic and we are here to help you filter through the noise. Follow us throughout December so we can help you build your own investment wish list for 2026.
I appreciate all feedback, click below 👇 and let me know what you think! Marques
Quick Hits
· Margin Inflection at Strattec Security (NASDAQ: STRT): Stock of the Week.
· Strategic Accumulation at NextDecade (NASDAQ: NEXT): Buying continues.
· The Accounting Meltdown at Vestand Inc : (NASDAQ:VSTD) Critical red flag.
Harmony Biosciences (NASDAQ: HRMY)
This is exactly what we look for in biotech. Harmony just moved from hope to reality. Their latest Phase 3 trial showed a 50% reduction in seizures for Dravet syndrome patients. That is a massive number in the medical world. The stock is up 24% this month because the biggest risk in this trade, the science not working, just evaporated.
Our Take: Buy. The data is undeniable. With the science proven, the path to commercial growth is wide open. This is a green light.
CTS Corp (NYSE: CTS) – The Capital Return Pivot
CTS has taken a beating this year (down 20%), so management is stepping in to protect the stock. They just authorized a $100M buyback program. Think of this as a defensive shield; they are using their cash to keep the share price from falling further while their new COO tries to fix the operations.
Our Take: Hold. The buyback creates a solid floor, so the downside is limited. But you don't buy a stock just because it stopped falling. Wait to see if the new leadership can actually grow sales before adding to your position.
Calavo Growers (NASDAQ: CVGW) – The Leadership Limbo
Uncertainty is weighing heavily on the avocado giant. Long-time leader Lee E. Cole is retiring, handing the CEO reins to B. John Lindeman on Dec 8. The market hates this transition. Shares have plummeted 24.35% in the last three months, suggesting investors are exiting rather than waiting to see the new CEO's strategy.
Our Take: Sell/Avoid. Leadership transitions in low-margin businesses are risky. With the stock in freefall, wait for the dust to settle.
The Box Score
Key stats on the movers and shakers this week with our proprietary quantitative scorecard.
Tactile Systems (NASDAQ: TCMD) – The Triple Threat
This is how you crush a quarter. Tactile didn't just post good clinical data; they raised their full-year revenue guidance and launched a $25M buyback. When management tells you business is booming and they think the stock is cheap, you listen.
Our Take: Watch/Buy. The stock is up 58% this month for a reason: The company is firing on every cylinder. With the recent run-up in price, watch to buy on a pullback.
Lindsay Corp (NYSE: LNN) – The Apology Buyback
Lindsay missed earnings estimates, which usually sends investors running. But management stepped in with a $150M share repurchase program to stop the bleeding. They are effectively saying the market's reaction is wrong and they are willing to spend cash to prove it.
Our Take Hold. The buyback puts a hard floor under the price. It’s a safety net, but we need to see better earnings before chasing the upside.
Preformed Line Products (NASDAQ: PLPC) – Riding the Grid
While tech stocks grab the headlines, PLPC is quietly making a fortune upgrading the world’s energy grid. Sales are up, and the stock is up 60% YTD. This is a classic "picks and shovels" play on the global infrastructure boom.
Our Take: Buy. The trend is your friend. As long as energy grids need upgrading, PLPC prints money.
Ranger Energy Services (NYSE: RNGR) – Empire Building
The energy services market is soft right now, so Ranger is doing the smart thing: buying competitors on the cheap. Their $90.5M acquisition of American Well Services increases their rig count by 25%. This is a play for scale so they dominate when the cycle turns.
Our Take: Hold. Smart M&A, but the sector is still facing headwinds. This is a 2026 story, not a next-week story.
ReposiTrak (NASDAQ: TRAK) – The Government Mandate
ReposiTrak has the ultimate competitive advantage: Federal Law. With the FDA's FSMA 204 deadlines approaching, food companies have to track their supply chains. ReposiTrak sells the compliance they need to stay in business.
Our Take: Buy. Regulatory tailwinds are the strongest kind. Adoption is accelerating because customers have no choice.
The Red Flag Radar
We scan the filings for hidden risks: going-concern warnings, material weaknesses, restatements, and sudden auditor changes.
⚠ These are alerting you to sell signals ⚠
Vestand Incorporated (NASDAQ: VSTD) – The "Cooked Books" Alert
It doesn't get worse than this. The board admitted that four years of financial statements (2021–2025) are unreliable and need to be restated.
Our Take: Sell Immediately When "inconsistencies" span half a decade, the equity is usually worthless. Do not wait for the restatement.
ScanTech AI Systems (NASDAQ: STAI) – The Death Spiral
Nasdaq sent the "It's Over" letter. ScanTech failed the minimum value requirement and failed to file its reports.
Our Take: Sell.This is heading to the OTC graveyard. Get out before liquidity dries up completely.
In The Spotlight
Strattec Security (NASDAQ: STRT) – The Sleeper Hit Market Cap: $280M
Sometimes the best trades are the boring ones. Strattec makes car keys and locks. It sounds dull until you look at the P&L.
Strattec quietly delivered a monster quarter. They smashed earnings estimates ($2.22 EPS vs $1.48 expected) and grew revenue by 10%.
Gross margin jumped 370 basis points to 17.3%. That is pure operational execution. They are fixing the business, cutting costs, and pricing their products better. Plus, they are sitting on $90.5M in cash—that is a massive safety cushion for a company of this size.
Our Take: Buy. This is a dislocation. You have a cash-rich company growing sales and expanding margins, yet it’s still flying under the radar. Strattec is proving that "old school" auto parts can deliver high-tech returns.
Closing It Out
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