4 boom-time stocks you don't know

Guaranteed multi-baggers or biggest losers? You decide

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If you consider yourself a high risk/high reward type of investor, you should know these small-cap stocks. Although some may promise more than they'll deliver, if even one turns out to be what investors are hoping for, then there's a big chance your gains will significantly outweigh your losses.

The first stock is Liquefied Natural Gas Limited (ASX: LNG). Its flagship project named Magnolia, in Lake Charles, Louisiana, is a liquefaction project which hopes to produce 8 million tonnes of natural gas per annum for a number of major tolling clients. Magnolia appears to be a project where all the stars are aligning and management appear more than capable of taking the company to production. The stock is up 78% in 2014 alone.

Yellow Brick Road Holdings Ltd (ASX: YBR) is another small-cap with huge potential. It's a diversified financial company with branches popping up around the country. It has solid balance sheets with management who have a vision of becoming one of the biggest non-bank financial companies in Australia.

Altium Limited (ASX: ALU) is an innovative small-cap software developer for electronic products that seek to tap into the growth of machine-to-machine communication. Up around 1,900% in the past three years, investors are clearly impressed by the company's ongoing achievements. In its most recent quarterly results, sales increased 8%, revenue was up 16% and cash balance was up 33%.

Fueling the demand for internet enabled devices and superior network communications is Newsat Limited's (ASX: NWT) Jabiru satellite development program. It recently completed a milestone with the construction of one of its satellites and along with renowned aerospace company, Lockheed Martin Corporation (NYSE: LMT), it is seeking to put more craft in the sky over the next 10 years. With a successful launch Newsat's earnings are also expected to go skyward.

Foolish takeaway

These companies aren't for everyone and should be considered somewhat speculative. However amongst the thousands of small companies on the ASX, I believe these are some of the best and deserve a spot on your watchlist.

Motley Fool Contributor Owen Raszkiewicz owns shares in LNG Limited, Newsat and Yellow Brick Road. 

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