...Greeting Cards, Motels...

Takeovers could prove at least as lucrative to investors in small-capitalization stocks. "There are legitimate candidates with rapidly rising earnings and revenues that have been virtually ignored by the market so far this year," says Charles LaLoggia, editor of Special Situation Report in Rochester, N.Y. His picks: greeting-card maker Healthy Planet Products (HPP) and hotel operator Microtel Franchise & Development (MCTL).

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