On May 2, I posted a special report titled My Favorite Large-Cap, Mid-Cap, Small-Cap, and ETF Plays.

This report was issued to our WS APEX readers, but I also spoke about this report at our Atlanta Wealth Convention and here in the pages of WaveStrength Market Report.

Today, as we get ready to close the books on the 2006 calendar year, I'd like to officially take profits on one of my picks from that report -- which was my recommendation to buy shares of The Knot (KNOT:NASDAQ) for $16.50 per share. As I write, the stock trades for $25.66, good for a 55.5% gain in seven months.

If you recall, I called KNOT my favorite small-cap stock for two reasons:

1.) It enjoys a dominant market presence in a very specific market niche.

2.) More importantly, it caters to the most dominant spending demographic on the face of the earth: Newly-engaged brides.

Let's face it, fiancées do not hesitate to drop staggering amounts of money on their weddings -- and that's why every business involved in weddings -- from pastry chef managers to chisel-sporting ice sculptors to high-priced wedding planners -- gladly pay for representation on The Knot.

That's why I called The Knot “the premiere online wedding portal in the United States” -- and recommended the shares in early spring (which coincided, of course, with the prime wedding season). As it turns out, this analysis was spot-on correct. Since that recommendation, the stock has gained over 50% -- and now it's time to cash in.

Let's go ahead and take profits on our position in KNOT -- selling the shares over $25 anytime between now and the end of the 2006 calendar year.

If you made this play alongside me, then congrats on your gains.