Friday, June 22, 2012

3 Cash Hoarding Small Caps Currently On Sale


Small-cap stocks tend to offer investors greater growth potential than larger cap alternatives, although this comes with added risk. To minimize that risk, today we searched for companies with strong asset liquidity, meaning that they are prepared for the worse if needed, or they have the ability to fund strategic acquisitions or growth investments. As a way to hone in on companies that are currently on sale, we only looked for stocks whose fundamentals suggest that they are trading below their true value. Our screen came up with a short but interesting list.The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will
... Read the rest at SeekingAlpha.com

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