Friday, July 27, 2012

7 Small Caps Showing Promise And Profitability


To find the diamonds in the rough, seasoned investors take a close look at a company's earnings, especially when analyzing small-cap stocks. When a small-cap company consistently reports profitability, it often won't stay at that level much longer. Here is a list of companies from a variety of sectors that meet that criteria. They all have the further advantage of trading below estimated value according to their fundamentals. These small-cap stocks are worth further review.The Price/Cash Flow ratio is a price-multiple valuation metric that also measures a firm's future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the firm is taking in from a valuation standpoint. Price/Cash Flow Ratio = Current Stock Price/Cash Flow Per Share.The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio,
... Read the rest at SeekingAlpha.com

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