Thursday, June 21, 2012

4 Small-Cap Tech Stocks With Great Liquidity But Priced Below Value


Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. One tactic to minimize that risk is to screen on company liquidity. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Today we focused on technology companies with great liquidity, while focusing in on those that also look undervalued according to their fundamentals. We came up with a short but interesting list.The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the earnings forecast instead. While this number might not be as accurate because it uses the "forecast" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market
... Read the rest at SeekingAlpha.com

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