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There are many different strategies to trade stocks and one of them is to find the balance sheet of a company. For example, company should have appropriate debt for a growth. If a company is willing to take debt implies that the management is confident about the success of its undertakings and also leveraging the low interest rates. However, too much debt will have negative impact on their future earnings and increase in interest rates will further impact their interest payments. Current ratio and debt to capital ratio are key indicators from the balance sheet. Current ratio is calculated based on current assets divided by current liabilities. Current ratio shows company's ability to pay its short term liabilities with its short-term assets. Debt to Capital ratio is calculated based on company's debt divided by its total capital.

In this article, I will focus on the top 10 companies with strong balance sheet and good price performance for the year 2012. Use this list as a potential starting point for your analysis. I have screened these 10 stocks based on the following criteria:

  • Security Type: Common Stock
  • P/E (Next Year Estimate): Less than or Equal to 15.0
  • EPS Growth (Proj Next Yr vs. This Year): Greater than or Equal to 20.00%
  • Forward EPS Long Term Growth (3-5 Years): Greater than or Equal to 20.00%
  • EPS Growth (Proj this Yr vs. Last Yr): Greater than or Equal to 20.00%
  • Price Performance (This Year): Minimum 10%
  • Current Ratio (Most Recent Quarter : Greater than or Equal to 1.5
  • Debt to Capital Ratio (Most Recent Quarter): Less than or Equal to 25.00%

The following table provides the top 10 stocks with strong balance sheet and price performance:


(Click to enlarge)

1. FSI INTERNATIONAL INC (FSII): FSI designs, manufactures, markets and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. FSI has a market cap of $195.2M. FSI is currently trading around $4.98 with a 52 week range of $1.70 to $5.44. Revenue growth for the last quarter is 25.05% when compared to same quarter prior year. Projected EPS growth for this year is 93.81% when compared to last year. The stock has 32.79% price performance for the year 2012. FSI has 4.3 current ratio and 0% debt to capital ratio.

2. DUSA PHARMACEUTICALS INC (DUSA): DUSA is a vertically integrated dermatology company that is developing and marketing Levulan photodynamic therapy (Levulan PDT), and other products for common skin conditions. DUSA Pharmaceuticals has a market cap of $146.10 M. DUSA Pharmaceuticals is currently trading around $5.85 with a 52 week range of $3.25 to $6.83. Revenue growth for the last quarter is 27.21% when compared to same quarter prior year. Projected EPS growth for this year is 27.5% when compared to last year. The stock has 31.96% price performance for the year 2012. DUSA Pharmaceuticals has 5.6 current ratio and 0% debt to capital ratio.

3. PDF SOLUTIONS INC (PDFS): PDF Solutions is a provider of infrastructure technologies and services to the integrated circuit (IC) design and manufacturing, improve time to market, and improve profitability by addressing design and manufacturing interactions from product design to initial process ramps to mature manufacturing operations. PDF Solutions has a market cap of $260.45 M. PDF Solutions is currently trading around $9.15 with a 52 week range of $3.45 to $9.23. Revenue growth for the last quarter is 8.5% when compared to same quarter prior year. Projected EPS growth for this year is 73.08% when compared to last year. The stock has 30.99% price performance for the year 2012. PDF Solutions has 5.3 current ratio and 0% debt to capital ratio.

4. ACACIA RESEARCH CORP (ACTG): Acacia Research Corporation, through its operating subsidiaries, acquires, develops, licenses and enforces patented technologies. Acacia has a market cap of $2.03 B. Acacia is currently trading around $40.96 with a 52 week range of $28.32 to $47.24. Revenue growth for the last quarter is 62.02% when compared to same quarter prior year. Projected EPS growth for this year is 354% when compared to last year. The stock has 10.41% price performance for the year 2012. Acacia has 20.20 current ratio and 0% debt to capital ratio.

5. EXTREME NETWORKS INC (EXTR): Extreme Networks, together with its subsidiaries, is a provider of network infrastructure equipment and services for enterprises, data centers, and service providers. Extreme Networks has a market cap of $361.56 M. Extreme Networks is currently trading around $3.87 with a 52 week range of $2.44 to $4.43. Revenue growth for the last quarter is -2.72% when compared to same quarter prior year. Projected EPS growth for this year is 188% when compared to last year. The stock has 32.53% price performance for the year 2012. Extreme Networks has 1.8 current ratio and 0% debt to capital ratio.

6. GULFMARK OFFSHORE INC (GLF): GulfMark Offshore provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas. GulfMark Offshore has a market cap of $1.27 B. GulfMark Offshore is currently trading around $47.64 with a 52 week range of $32.34 to $56.41. Revenue growth for the last quarter is 13.7% when compared to same quarter prior year. Projected EPS growth for this year is 71.42% when compared to last year. The stock has 12.71% price performance for the year 2012. GulfMark Offshore has 3.9 current ratio and 21.82% debt to capital ratio.

7. SANTARUS INC (SNTS): Santarus is a specialty biopharmaceutical company focused on acquiring, developing and commercializing products that address the needs of patients treated by physician specialists. Santarus has a market cap of $380.92 M. Santarus is currently trading around $6.22 with a 52 week range of $2.40 to $6.25. Revenue growth for the last quarter is 64.59% when compared to same quarter prior year. The stock has 87.92% price performance for the year 2012. Santarus has 1.8 current ratio and 16.52% debt to capital ratio.

8. CUMBERLAND PHARMACEUTICALS INC (CPIX): Cumberland is a specialty pharmaceutical company focused on the acquisition, development and commercialization of prescription products. Cumberland Pharmaceuticals has a market cap of $151.9M. Cumberland Pharmaceuticals is currently trading around $7.6 with a 52 week range of $4.80 to $8.02. Revenue growth for the last quarter is 1.7% when compared to same quarter prior year. Projected EPS growth for this year is 25% when compared to last year. The stock has 38.66% price performance for the year 2012. Cumberland Pharmaceuticals has 13.2 current ratio and 5.5% debt to capital ratio.

9. CALIX INC (CALX): Calix is a provider in North America of broadband communications access systems and software for fiberto $and copper-based network architectures that enable communications service providers (CSPs) to connect to their residential and business subscribers. Calix has a market cap of $367.0M. Calix is currently trading around $7.67 with a 52 week range of $5.60 to $22.97. Revenue growth for the last quarter is -0.12% when compared to same quarter prior year. Projected EPS growth for this year is 28.5% when compared to last year. The stock has 21.33% price performance for the year 2012. Calix has 220% current ratio and 0% debt to capital ratio.

10. VELTI PLC (VELT): Velti is a global provider of mobile marketing and advertising solutions that enable brands, advertising agencies, mobile operators and media companies to implement campaigns by communicating with and engaging consumers through their mobile devices. Velti has a market cap of $726.04 M. Velti is currently trading around $11.75 with a 52 week range of $6.04 to $20.00. Revenue growth for the last quarter is 51.52% when compared to same quarter prior year. Projected EPS growth for this year is 48.6% when compared to last year. The stock has 72.65% price performance for the year 2012. Velti has 2.2 current ratio and 3.17% debt to capital ratio.

Sources: Some of the data is sourced from Google Finance, Yahoo Finance and Fidelity.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to the investors to make the correct decision after necessary research.

Source: Top 10 Stocks With Strong Balance Sheet And Price Performance In 2012