Monday, August 20, 2012

7 Small Cap Stocks With Strong Liquidity And Profits


Experienced small cap investors know the delicate balance between growth and risk that stocks at this level present. To find true growth opportunities and reduce as much risk as possible, it is key to focus on profitability. Strong profits demonstrate that a company is on the right track. Further, when these companies also have substantial cash reserves, they have the funding to fuel future growth. If profitable companies with high liquidity pique your interest, you will probably like the list of small cap stocks that we came up with today.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,
... Read the rest at SeekingAlpha.com

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