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Monday, August 20, 2012
4 Undervalued Small Cap Stocks Maintaining Great Liquidity
While finding a bargain can be thrilling, it is important to maintain a level head when considering a purchase, especially in the case of investments. Stocks at the small cap level that are trading below their perceived value offer substantial growth opportunities for the investor. One way to employ discernment before investing is to scrutinize liquidity. When a company has strong liquidity, it has the cash reserves on hand to fund future growth and move up to the next level. For your review, we present a list of small cap stocks that appear to be offered at a discount and have cash on hand.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share [EPS], and the company's expected growth. In general, the P/E ratio is higher for a company with a higher
... Read the rest at SeekingAlpha.com
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