Monday, August 27, 2012

4 Highly Liquid Small Cap Stocks That Analysts Love


Some investors view small cap stocks as too risky. But narrowing the playing field to small caps that have ample cash reserves helps alleviate some of the risk. Having a high level of liquidity positions a company to remain flexible when opportunities for growth occur as well as when new challenges arise. Today, the small cap stocks we chose to evaluate all have strong cash reserves and recent " Strong Buy" ratings from industry analysts. Use our findings as a starting point for your own analysis.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 mean the company will go bankrupt tomorrow, but it also doesn't
... Read the rest at SeekingAlpha.com

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