Thursday, June 21, 2012

6 Small-Cap Basic Materials Stocks With Substantial Cash


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 way to mitigate that risk is to look for small cap companies with good liquidity, meaning that they have cash on hand to cover expenses, make investments or acquisitions, or plow money back into R & D. Another way to minimize that risk is to look at the companies that analysts are backing. Today we ran a screen keeping these ideas in mind, and we came up with a pretty interesting list of companies.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
... Read the rest at SeekingAlpha.com

1 comment:

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