10 Investment Candidates from Forbes' 'Best Small Companies' List - Part III

This is a continuation of my search for the best small companies from the 200 listed in Forbes 2008.

You can refer to the previous results here: 1-15 | 16-32

The companies ranked 33-70 have yielded 10 results.

1. Nutrisystem (NTRI) - provides weight loss management and fitness programs
   • NTRI was part of my recent short term strategy. Sold as it went up to intrinsic value. Can be considered as faddy. No moat.
2. Bankrate (RATE) - operates online consumer banking and finance network
   • Personally used the site many times and a company with excellent numbers.
3. Blue Nile (NILE) - retails diamonds and fine jewelry online
   • Another company I have personal experience with during my search for a wedding ring.
4. Raven Industries (RAVN) - makes industrial, agricultural, construction and aerospace products
5. Chattem (CHTT) - markets OTC health care and consumer products
   • Became interested after reading a detailed article on Forbes. Could be a JNJ alternative with higher growth prospects. Equally recession proof as JNJ.
6. Jos. A. Bank Clothiers (JOSB) - retails men’s clothing and apparel
7. Ansys (ANSS) - develops engineering simulation software
8. Diodes (DIOD) - manufactures and distributes semiconductors
   • Competitive, no moat industry but price is too cheap to ignore. Made the list based on its cheap price.
9. FactSet Research Systems (FDS) - provides online financial information to investment community
10. Meridian Bioscience (VIVO) - markets diagnostic test kits and specialty biological products

There are a few that are trading below my estimated values but only NTRI and DIOD seems to offer a deep discount at this time.

View the graph below to see my comments and estimated fair values. [click to enlarge]

Disclosure: No positions in any stocks at time of writing.