WASHINGTON, D.C. – The notion that small-caps are riskier than large-caps flows from common sense. Small companies usually have fewer customers and lines of business. Their stocks aren’t as widely held, thus intensifying the effects if a big shareholder pulls the plug.
But what if one of your customers is the recession-resistant mother of all spenders? The one that can print money? Fargo Electronics is strong in a niche business that the U.S. federal government demands: printers that personalize identification cards with text and images.
“The federal government isn’t generally a big risk taker, so they’re looking for products that are tried and true,” explains Kathleen Phillips, Fargo’s vice president for sales and marketing. “We have those products.”
Andrew T. Gillies 