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If you're looking for small-cap ideas, the following list might offer an interesting starting point.

Here we present four small-cap stocks that have seen net insider buying over the last two years. Notably, these companies also have high TTM levered free cash flows as a percentage of market cap.

Levered free cash flow is the free cash flow available to the company after paying interest on outstanding debt. It is the cash flow available for operating expenses, which is what drives future returns.

Do you think these companies can use their cash profitably? Full details below.

Levered FCF sourced from Yahoo! Finance, insider data sourced from Fidelity, all other data sourced from Finviz.



List sorted by levered FCF as a percentage of market cap.

1. Carriage Services Inc. (CSV): Personal Services Industry. Market cap of $103.66M. Levered FCF is 14.38% of market cap (TTM levered FCF at $14.91M). Insiders purchased an average of 44,819 shares per year over the last two years, which is 0.25% of 17.78M shares outstanding. The stock has had a good month, gaining 11.26%.

2. Presstek Inc. (PRST): Diversified Machinery Industry. Market cap of $100.05M. Levered FCF is 11.21% of market cap (TTM levered FCF at $11.22M). Insiders purchased an average of 41,798 shares per year over the last two years, which is 0.11% of 36.92M shares outstanding.

The stock is also a short squeeze candidate, with a short float at 5.6% (equivalent to 15.08 days of average volume). PRST is exhibiting strong upside momentum--currently trading 21.08% above its SMA20, 24.41% above its SMA50, and 14.46% above its SMA200.

3. Harvard Bioscience Inc. (HBIO): Medical Instruments & Supplies Industry. Market cap of $120.23M. Levered FCF is 6.72% of market cap (TTM levered FCF at $8.08M). Insiders purchased an average of 57,670 shares per year over the last two years, which is 0.20% of 28.29M shares outstanding. The stock has gained 9.25% over the last year.

4. Mad Catz Interactive Inc. (MCZ): Toys & Games Industry. Market cap of $104.75M. Levered FCF is 5.23% of market cap (TTM levered FCF at $5.48M). Insiders purchased an average of 104,100 shares per year over the last two years, which is 0.19% of 55.72M shares outstanding.

Note that MCZ is a risky stock that is significantly more volatile than the overall market (beta = 2.18). It is exhibiting strong upside momentum--currently trading 5.84% above its SMA20, 40.61% above its SMA50, and 156.75% above its SMA200.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

i

Source: 4 Cash-Rich Small Cap Stocks With Significant Insider Buying