Stock Winner for January 23, 2014

Today’s stock winner of the day goes to…Silicom! Silicom (SILC) finished the day up 29.6% after their fourth quarter earning report this morning. Silicom experienced its best year ever after posting revenues over $73 million, an increase of over 50% on the year.

Silicom is a stock I bought back in December at $40.90. I have experience over 47% growth in only a month from this stock! While the gains have been nice, I will not let this nice gain affect my future decisions. I dedicate a small portion of my portfolio to speculative stocks. That way I decrease my risk of losing a lot of money while having an opportunity to make a nice chunk of change in the process.

More about Silicom: Silicom provides the networking industry with connectivity and networking solutions. Sales and earnings have continued to grow steadily over the past four years. They have low debt and carry over $37 million in cash and cash equivelants. Return on Equity and Return on Assets are 17.4 and 15.1 respectively, which are well above their industry average. With net income growing an average of 52% a year for the past three years, Silicom is a stock worth looking at.

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