Sunday, June 3, 2012

8 Small Cap Basic Materials Buy-Rated Stocks Trading At A Discount


Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. We are focusing on small cap stocks in the basic materials sector. These companies have gained analyst confidence, and therefore, merit more research. We then looked for stocks that appear undervalued from a price-multiple perspective, meaning now might be the time to invest. The list we came up is a bit diverse, but we think you'll find it interesting.The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it lets an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap, because investors are paying $1
... Read the rest at SeekingAlpha.com

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