From Bloomberg.com: -- I have nothing against large companies, but my heart belongs to small-cap value stocks.
As I see it, the chances of finding a gem in the rough are greater with small stocks. They are less followed by analysts and investors, so the opportunities haven’t been exhaustively picked over.
Last week I screened the 2,131 U.S. stocks with a market value between $250 million and $2 billion, using these filters:
-- Five-year sales and earnings growth averaging 10 percent a year or better.
-- Debt less than 50 percent of stockholders’ equity.
-- Price-to-earnings ratio below 15, measured on both the actual earnings for the trailing four quarters and the estimated earnings for 2009.
-- Price-to-book ratio (stock price divided by corporate net worth per share) and price-to-sales ratio (stock price divided by per-share sales) both below two.
Here’s a run-down, in alphabetical order, of the stocks that survived these screens....LINK
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