Thursday, September 27, 2012

5 Low-Debt Small Cap Stocks With Cash On Hand


When considering small cap stocks, most investors agree that it is imperative to focus on companies that have set themselves up for long term sustainability. Companies with sustainable business models often have a high level of liquidity and carry a minimal amount of debt. Cash reserves signify that a business has fiscal prudence as well as confidence in its ability to carry on through market ups and downs. Equally important is for companies to not lean too heavily on borrowing as it nearly always interferes with growth. With this in mind, we developed a list of liquid small cap stocks with minimal debt. We think you find our list worthy of further review.The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount
... Read the rest at SeekingAlpha.com

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