Sunday, June 24, 2012

3 Profitable Mid Cap Basic Materials Stocks Recommended As Buys


Mid cap companies present an interesting opportunity: they offer some of the growth potential of smaller cap companies, yet they can lack some of the stability of larger cap alternatives. Today we focused on mid cap companies in the basic materials space that have records of reliably returning profits to shareholders, and that have garnered analyst recommendations. We arrived at a short list of companies that merit more analysis and research.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.Return on Assets [ROA] illustrates how
... Read the rest at SeekingAlpha.com

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