After some thought, I've decided to tweak the criteria for the Small Cap Earnings Surprise Portfolio I track on the right hand side of the blog using Google Docs. Last months results can be seen here. Rather then use price to book as a criteria, I've decided to replace it with a low PEG. The rationale for using PEG as opposed to Price/Book is that the screen is primarily looking for small cap companies that have a recent history of earnings surprises. A favorable PEG ratio better captures the "essence" of the screen, which is earnings, and seeks companies priced reasonably relative to earnings growth. However, if you have an interest in continuing to screen for the same criteria in my previous articles you can do so using many of the free tools/sites I frequently cite.
The full results of the screen looks for a low PEG, recent earnings surprises, and small market capitalization. I further narrow the list based on additional fundamental factors to 10 stocks. The list, as always, is not a specific portfolio but a recommendation for further research. The current list of stocks is below:
| Ticker | Name | Free Trend Analysis | Last | MktCap |
| LINC | Lincoln Educational Services | Here | 19.51 | 527.54 |
| JOEZ | Joe's Jeans Inc. | Here | 2.05 | 126.31 |
| CNU | Continucare Corporation | Here | 4.42 | 265.02 |
| FUQI | Fuqi International, Inc. | Here | 16.88 | 466.37 |
| JST | Jinpan International Limited | Here | 48 | 394.06 |
| NSIT | Insight Enterprises, Inc. | Here | 13.09 | 600.69 |
| CRMT | America's Car-Mart, Inc. | Here | 24.49 | 287.32 |
| AAWW | Atlas Air Worldwide Holdings, | Here | 38.41 | 810.38 |
| STRL | Sterling Construction Company | Here | 19.59 | 260.32 |
| HITK | Hi-Tech Pharmacal Co. | Here | 20.87 | 252.15 |
Author's Disclosure: No positions
