Thursday, June 28, 2012

4 Small/Micro Cap Financials With Strong Profitability Trading On The Cheap


Financial stocks can be risky investments, depending on the company's management. One way to hone in on well managed companies is to look for those that hold strong track records of profitability, through the good times and the bad. Today, we ran a screen with these ideas in mind, while also looking for companies that currently look undervalued by different metrics, and we came up with a pretty interesting list.The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.The Net Margin
... Read the rest at SeekingAlpha.com

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