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Return on Assets (TTM) is a profitability metric that gives a concise image of how much earnings have been generated from a company’s assets. As well, this indictor illustrates how efficient and effective management is relative to generating profits from these assets. This ratio is found by dividing earnings over total assets. For some this ratio is considered to be the most straightforward quantitative form of assessing management in relation to how well it utilizes a company’s assets.

We ran a screen for small-cap stocks that have a strong Return on Assets (X>20). From this narrowed pool we then screened out companies irms that are bouncing off their 52-Week lows.

1. Pioneer Southwest Energy Partners (PSE)

Sector

Energy

Industry

Oil & Gas E&P

Market Cap

$834M

Beta

0.41

PSE’s ROA (TTM) is 37.72%. The company is 3.84% above the 52-Week low. The short interest was 1.70% as of 08/31/2011.

2. Enzon Pharmaceuticals, Inc. (ENZN)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$371M

Beta

1.18

The company develops and commercializes therapies that treat cancer and adjacent diseases. ENZN’s ROA (TTM) is 36.26 %. The company is 3.39 % above the 52-Week low. The short interest was 19.40% as of 08/31/2011.

3. Strayer Education, Inc. (STRA)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$946M

Beta

0.62

The company is a for-profit that offers secondary education services. STRA’s ROA (TTM) is 31.80 %. The company is 4.72 % above the 52-Week low. The short interest was 23.20% as of 08/31/2011.

4. Aeropostale, Inc. (ARO)

Sector

Consumer Cyclical

Industry

Apparel Stores

Market Cap

$776M

Beta

1.09

The company is a specialty retailer of accessories and casual apparel. ARO’s ROA (TTM) is 29.92%. The company is 4.91% above the 52-Week low. The short interest was 19.90% as of 08/31/2011.

5. PDL BioPharma, Inc. (PDLI)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$781M

Beta

0.30

The company develops and sells therapies for life-threatening illnesses. PDLI’s ROA (TTM) is 29.01%. The company is 19.96% above the 52-Week low. The short interest was N/A as of 08/31/2011.

6. Xyratex, Ltd. (XRTX)

Sector

Technology

Industry

Data Storage

Market Cap

$261M

Beta

2.08

The company offers enterprise-class data storage solutions and technology. XRTX’s ROA (TTM) is 24.00%. The company is 13.19% above the 52-Week low. The short interest was 7.90% as of 08/31/2011.

7. Capella Education Company. (CPLA)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$459M

Beta

0.48

The company offers post-secondary education services online. CPLA’s ROA (TTM) is 23.34%. The company is 10.19% above the 52-Week Low. The short interest was N/A as of 08/31/2011.

8. Usana Health Sciences, Inc. (USNA)

Sector

Consumer Def

Industry

Household & Personal Products

Market Cap

$390M

Beta

0.98

The company develops and sells nutritional and personal care products. USNA’s ROA (TTM) is 22.40%. The company is 12.08% above the 52-Week Low. The short interest was 44.30% as of 08/31/2011.

9. Valassis Communications Inc. (VCI)

Sector

Consumer Cycl

Industry

Marketing Services

Market Cap

$905M

Beta

3.58

The Company provides a wide range of marketing products and services to a variety of premier manufacturers, direct marketers, retailers, franchisees and other advertisers. VCI’s ROA (TTM) is 20.88%. The company is 3.84% above the 52-Week Low. The short interest was N/A as of 08/31/2011.

10. Rigel Pharmaceuticals, Inc. (RIGL)

Sector

Healthcare

Industry

Drug Manufacturers - Specialty & Generic

Market Cap

$505M

Beta

1.69

The company develops small molecule drugs for inflammatory diseases, viral diseases, and cancer. RIGL’s ROA (TTM) is 20.29%. The company is 10.44% above the 52-Week Low. The short interest was N/A as of 08/31/2011.

We hope this list helps as investors do their own due diligence.

Source: 10 Small-Cap Stocks Bouncing Off Lows With Strong Profitability