Friday, August 24, 2012

7 Low-Debt Small-Cap Stocks Set For Growth


It is not surprising that many smaller companies accrue debt in the process of growing the business. After all, building from the ground up usually takes more time than originally anticipated. More time usually means additional expenses. So when a small cap level company is relatively debt free and is growing steadily, it sends a positive message that effective management is at the helm. With this in mind, we developed a list of small-cap stocks with minimal debt and EPS growth rates above 25% for the next five years. If these traits appeal to you, then you will like our list of small-cap stocks.The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed
... Read the rest at SeekingAlpha.com

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