Some suggestions:
Solid undiscovered companies (microcap):
ADMS, Advanced Marketing Services --- distributes books to
superstores like WalMart and KMart. Average annual earnings
growth of 40% over past 5 years. P/B=1.2, P/S=.21, P/E=10,
no debt, small dividend, not much coverage.
CUO, Construction Material Corp --- construction company and
also sells air conditioning unit. P/B=1.03, P/S=0.33, P/E=8.
Don't have earnings growth on past 5 years, but stock has
tripled in that time. No analyst coverage that I know of
(at least not on Zacks or Yahoo).
Speculative microcaps:
Michael Anthony Jewelers --- manufactures and sells gold
jewelry. P/B=0.47, P/S=0.15, P/E negative, Insider buying.
Has been a dog for quite awhile, but severely undervalued
(book value appears legit, esp. with write-down earlier
this year) and should show positive earnings this year.
Movie Gallery --- movie rental store. P/B=0.45, P/S=0.25, P/E
negative, stock buyback. However, much of book value is goodwill,
and they just announced a write-down and new depreciation
schedule. Nevertheless, cash flow (EBITDA) is solid, 5.6
million for last QUARTER on a market cap of 68.8 million
(does not take into account replacement value of buying new
videos). Debt is high (0.39 of equity).
Battered smallcaps with cash:
BOSS, RAIN, GIBG --- all priced below book value, huge amounts
of cash, significant positive cash flow, low debt. (RAIN and
GIBG were growth stocks turned value due to earnings
disappointments.)
Some larger caps and cyclicals I have had success with recently:
LEH, RTNA, RN, YELL.
Some larger caps and cyclicals I had my eye on:
JPM, CCK, CSE.
The valuations are not as compelling as for the smallcap stocks,
but I am looking for a little diversity, esp. since until recently
large caps have outperformed. |
