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Seneca Foods (SENEA)

With the market showing some strength again, it is time to consider dialing up your risk tolerance a bit with some small-cap stocks. One we’re looking at right now is Seneca Foods Corp (SENEA, Rated B-) on our Best Growth Stocks Heat Map at the No. 12 spot.

The company has a market cap of $333 million, but it pays no dividend and has little analyst coverage. It packages fruits and vegetables for itself and other companies, both under private label brands and other household brands such as Green Giant (General Mills).

In its recent results period, it had 5.3% decline in sales, but it compensated with a more than doubling of gross margins to 12.3% from 5.7% and posted further efficiencies to help boost the bottom line as well. It also recorded a $20 million increase in contractual payments from General Mills.

From a technical perspective, the stock has broken out to the upside and, if market conditions hold, it could continue to move in that direction. But watch it closely—if we get a pullback to $30-$31, that could provide an attractive entry for those who want to add it to a well-balanced portfolio.

Mike Burnick, Weiss Stock Ratings Heat Maps, published by Money and Markets, a Division of Weiss Research, Inc.,, 1-800-291-8545, March 2, 2016

Mike Burnick brings a wide range of experience in the financial services industry to Weiss Research . With over 25-years of professional investment experience, he was a Registered Investment Adviser and portfolio manager responsible for the day-to-day operations of a mutual fund. Mike joined Weiss Research in 2002 as an analyst and writer, and in 2008 was named Director of Research and Client Communications at Weiss Capital Management, where he assisted managing the day-to-day asset-allocation and trading responsibilities for a $5 million ETF strategy. Formerly, Mike served as Director of Research for the Sovereign Society and in the role of senior editor. His responsibilities included analysis of global financial markets and economic trends focusing on global ETF and options investing. At present, Mike serves as Manager of Investment Services for Weiss Research, Chief Investment Strategist for the Extreme Profit Hunter service, and is a regular contributor to the firm’s daily e-newsletter, Money and Markets. Mike is a graduate of Stetson University with bachelor’s degrees in both finance and management. He is a frequent guest commentator on CNBC, Fox Business News, Bloomberg TV, and nationally syndicated financial talk radio programs.