4 Small-Caps to Investigate

ALAN BROCHSTEIN LOOKS FOR SMALL-CAPS

  • Reasonable or Cheap Valuation
  • Positive Price Momentum (or extreme negative momentum or oversold)
  • Strong Projected EPS Growth
  • Strong Balance Sheet
  • History of Strong Sales Growth
  • Universe:  Russell 2000
  • Market Cap:  >$500mm
  • Sales growth:  5yr > 10%, 1yr > 6%
  • Trailing PE < 24
  • Earnings Growth for 2013 > 10%
  • Net Debt to Capital < 10%
  • 3-month Price Return > S&P 500 (-4%)
  • YTD Price Return < 20%

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