Seeking Alpha
Long/short equity, deep value, value
Profile| Send Message|
( followers)  

There is no question that parts of Main Street are shell shocked after what happened in the markets this last month, but Wall Street isn’t. Instead, Wall Street players remain battle hardened from the last recession. They understand the value of keeping a cool head and looking for amazing opportunities when the markets start looking like a yo-yo just because of news headline risk. In our view, Main Street needs to keep looking at the potential opportunities just like Warren Buffett even if they aren’t ready to make a decision today.

Operating margin is a profitability ratio that demonstrates what amount of revenue is left after variable & other costs are deducted. A strong operating margin is always a positive, but needs to be reviewed against industry and company trends over time. Finding companies that consistently have a superior and/or resilient operating margins provide one indication that they may be the best in breed.

Given the huge amount of volatility in the last month, we screened for companies that weren’t spared (1-month performance<-10%). From this narrowed pool we screened for firms that had strong profitability (operating margin>15%) along with plenty of liquidity (current ratio>2) on hand to help weather any impending storm. We did not screen out any sectors or market caps.

The list is ranked from worst to least worst relative to performance over the last month:

1. DeVry, Inc. (NYSE: DV)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$ 3,060

Beta

0.23

Analyst Sentiment

13/19 – List Buy/ Outperform (Bullish)

The company operates a system career-oriented higher education schools. The stock has fallen 30.01% in the last month. The firm’s operating margin is 21.46% The company’s current ratio is 1.48. The short interest is 3.30% as of 07/29/2011.

2. Getty Realty Corporation. (NYSE: GTY)

Sector

Real Estate

Industry

REIT - Retail

Market Cap

$ 576

Beta

0.78

Analyst Sentiment

2/2 -List Bearish/Underperform (Bearish)

The company is Real Estate Investment Trust that owns and leases retail motor fuel convenience store properties along with petroleum distribution terminals. The stock has fallen 32.53% in the last month. The firm’s operating margin is 62.12% The company’s current ratio is 1.41. The short interest is 10.80% as of 07/29/2011.

3. DigitalGlobe Inc (NYSE: DGI)

Sector

Technology

Industry

Information Technology Services

Market Cap

$ 913

Beta

0.35

Analyst Sentiment

11/13 – List Buy/Outperform (Bullish)

The company provides commercial high-resolution earth imagery products and services. The stock has fallen 13.17% in the last month. The firm’s operating margin is 15.24. The company’s current ratio is 2.85. The short interest is 4.70% as of 07/29/2011.

4. Higher One Holdings, Inc. (NYSE: ONE)

Sector

Industrials

Industry

Business Services

Market Cap

$ 912

Beta

NA

Analyst Sentiment

8/10 – List Buy/Outperform (Neutral)

The company provides payment and technology services to the higher education space. The stock has fallen 19.73% in the last month. The firm’s operating margin is 28.45%. The company’s current ratio is 2.99. The short interest is 17.20% as of 07/29/2011.

5. Bally Technologies, Inc. (NYSE:BYI)

Sector

Technology

Industry

Software - Application

Market Cap

$ 1,604

Beta

1.47

Analyst Sentiment

9/17 -List Buy/Outperform (Bullish)

The Company designs, manufactures, assembles and distributes technology based products to commercial gaming markets. The stock has fallen 22.55% in the last month. The firm’s operating margin is 23.66%. The company’s current ratio is 2.54. The short interest is 9.50% as of 07/29/2011.

6. Shuffle Master (NASDAQ:SHFL)

Sector

Consumer Cyclical

Industry

Leisure

Market Cap

$ 416

Beta

1.25

Analyst Sentiment

4/7 -List Buy/Outperform (Bullish)

The company provides casinos and other gaming customers with utility products relative to industry efficiency & productivity. The stock has fallen 12.84% in the last month. The firm’s operating margin is 17.56%. The company’s current ratio is 3.26. The short interest is N/A.

7. Tessera Technologies, Inc. (NASDAQ:TSRA)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$ 667

Beta

1.32

Analyst Sentiment

3/4 -List Buy/Outperform (Bullish)

The company develops and licenses miniaturization technologies for the electronics industry. The stock has fallen 15.92% in the last month. The firm’s operating margin is 33.45%. The company’s current ratio is 19.34.The short interest is 3.60% as of 07/29/2011.

8. VimpelCom Ltd (NYSE:VIP)

Sector

Consumer Services

Industry

Telecom Services

Market Cap

$ 13,463

Beta

N/A

Analyst Sentiment

13/15 – List Buy / Outperform (Bullish)

An open joint stock company, which offers telecommunications services. The stock has fallen 8.33% the last month. The firm’s operating margin is 27.13%. The company’s current ratio is 1.13. The short interest is N/A.

9. Federated Investors, Inc. (NYSE:FII)

Sector

Financial Services

Industry

Asset Management

Market Cap

$ 1,810

Beta

0.86

Analyst Sentiment

8/13 – List Hold / Neutral (Neutral)

The company provides financial management products and related financial services. The stock has fallen 20.17% in the last month. The firm’s operating margin is 31.41%. The company’s current ratio is 1.44. The short interest is 16.20% as of 07/29/2011.

10. Yanzhou Coal Mining Company Li (NYSE:YZC)

Sector

Basic Materials

Industry

Coal

Market Cap

$ 15,168

Beta

2.41

Analyst Sentiment

24/28 -List Buy/Outperform (Bullish)

The company develops, mines, and markets coal products. The stock has fallen 14.94% in the last month. The firm’s operating margin is 29.35%. The company’s current ratio is 2.70. The short interest is N/A.

We hope this list helps as investors do their own due diligence and look for companies that are offering more value after the market pummeling.

Source: 10 Oversold, Profitable Stocks With Strong Liquidity