Interested in following smaller companies? Do you prefer investing in stocks that analysts rate as 'strong buy'? Do you value companies holding large amounts of cash? For ideas on how to start your search, we ran a screen you may find helpful.
The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.
The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).
We first looked for small cap stocks. Next, we then screened for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We then screened for businesses that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any sectors.
Do you think these small-cap stocks offer both value and growth? Use our list along with your own analysis.
1) Coherent Inc. (COHR)
|Industry:||Scientific & Technical Instruments|
Coherent Inc. has a Analysts' Rating of 1.40 and Current Ratio of 3.78 and Quick Ratio of 2.75. The short interest was 3.12% as of 05/27/2012. Coherent, Inc. provides photonics-based solutions for a range of commercial and scientific research applications worldwide. The company engages in designing, manufacturing, servicing, and marketing lasers, laser tools, precision optics, and related accessories. Its products are used in a range of applications, including microelectronics, scientific research and government programs, original equipment manufacturer components and instrumentation, and materials processing markets.
2) Cirrus Logic Inc. (CRUS)
|Industry:||Semiconductor - Specialized|
Cirrus Logic Inc. has a Analysts' Rating of 1.30 and Current Ratio of 4.82 and Quick Ratio of 4.05. The short interest was 15.07% as of 05/27/2012. Cirrus Logic, Inc., a fabless semiconductor company, develops high-precision analog and mixed-signal integrated circuits (ICS) for audio and energy markets worldwide. The company offers analog and mixed-signal audio converter and audio digital signal processor (DSP) products, which include analog-to-digital converters (ADCs); digital-to-analog converters (DACs); chips for integrating ADCs and DACs into an IC; digital interface ICs; volume controls; and digital amplifiers, as well as audio DSPs for consumer electronics applications. Its audio products are used in various consumer applications, including portable media players, smartphones, tablets, AVRs, DVD and Blu-ray disc players, home theater systems, set-top boxes, MP3 players, gaming devices, sound cards, and digital televisions; professional applications comprising digital mixing consoles, multitrack digital recorders, and effects processors; automotive applications consisting of amplifiers, satellite radio systems, telematics, and multi-speaker car-audio systems; and networked digital audio applications.
3) FEI Company (FEIC)
|Industry:||Scientific & Technical Instruments|
FEI Company has a Analysts' Rating of 1.50 and Current Ratio of 3.23 and Quick Ratio of 2.44. The short interest was 7.78% as of 05/27/2012. FEI Company supplies scientific instruments for nanoscale imaging, analysis, and prototyping that enable research, development, and manufacturing in industrial, academic, and research institutional applications. Its products include transmission electron microscopes and scanning electron microscopes (SEMs); DualBeam systems, which include a SEM and focused ion beam system (FIB) on a single platform; and stand-alone FIBs. The company's Electronics segment offers products used in laboratories to enhance new product development and increase yields by enabling 3D wafer metrology, defect analysis, root cause failure analysis, and circuit edit for modifying device structures in the semiconductor equipment and related industries, such as manufacturers of data storage equipment, solar panels, and light-emitting diodes.
4) Hawkins Inc. (HWKN)
Hawkins Inc. has a Analysts' Rating of 1.00 and Current Ratio of 3.44 and Quick Ratio of 2.33. The short interest was 5.90% as of 05/27/2012. Hawkins, Inc. manufactures, blends, and distributes bulk and specialty chemicals in the United States. The company operates through two segments, Industrial and Water Treatment. The Industrial segment provides industrial chemicals, products, and services primarily to the agriculture, energy, electronics, food, chemical processing, pulp and paper, pharmaceutical, medical device, and plating industries.
5) Electronics for Imaging, Inc. (EFII)
Electronics for Imaging, Inc. has a Analysts' Rating of 1.30 and Current Ratio of 2.36 and Quick Ratio of 2.04. The short interest was 2.74% as of 05/27/2012. Electronics For Imaging, Inc. provides color digital print controllers, digital inkjet printers, and business process automation solutions. The company's Fiery products consist of stand-alone print controllers and servers connected to digital copiers and other peripheral devices; embedded and design-licensed solutions used in digital copiers and multi-functional devices; optional software integrated into controller solutions that include Fiery Central and MicroPress; Entrac, a self-service and payment solution; PrintMe, a mobile printing application; and stand-alone software-based solutions, such as proofing and scanning solutions, including ColorProof XF, Fiery XF, ColorProof eXpress, and Xflow. It also offers industrial inkjet products, including VUTEk super-wide format digital industrial inkjet printers and inks used by billboard graphics printers, commercial photo labs, sign shops, graphic screen printers, specialty commercial printers, and digital graphics providers; Rastek hybrid and flatbed entry level production UV wide format inkjet printers; and Jetrion label and packaging digital inkjet printers, integration solutions, and specialty digital UV inks for primary and secondary label applications, and industrial label or flexible packaging markets.
6) FutureFuel Corp. (FF)
|Industry:||Chemicals - Major Diversified|
FutureFuel Corp. has a Analysts' Rating of 1.00 and Current Ratio of 6.28 and Quick Ratio of 4.58. The short interest was 2.97% as of 05/27/2012. FutureFuel Corp. engages in the manufacture and sale of diversified chemicals and biobased products in the United States. The company operates in two segments, Chemicals and Biofuels. The Chemicals segment offers custom manufacturing products, including nonanoyloxybenzene-sulfonate, a bleach activator for detergent and consumer products manufacturers; a proprietary herbicide for life sciences companies; and chlorinated polyolefin adhesion promoters and antioxidant precursors for chemical companies, as well as a biocide intermediates for other diversified chemical companies.
7) ICU Medical, Inc. (ICUI)
|Industry:||Medical Instruments & Supplies|
ICU Medical, Inc. has a Analysts' Rating of 1.40 and Current Ratio of 10.87 and Quick Ratio of 9.40. The short interest was 16.48% as of 05/27/2012. ICU Medical, Inc. engages in the development, manufacture, and sale of medical technologies used in infusion therapy, oncology, and critical care applications. The company's product line includes custom infusion systems, closed delivery systems for hazardous drugs, needleless infusion connectors, catheters, and cardiac monitoring systems. Its products enhance patient outcomes by preventing bloodstream infections, protecting healthcare workers and patients from exposure to infectious diseases or hazardous drugs, and monitoring the cardiac output of critical care patients.
8) Finish Line Inc. (FINL)
Finish Line Inc. has a Analysts' Rating of 1.50 and Current Ratio of 3.99 and Quick Ratio of 2.40. The short interest was 10.15% as of 05/27/2012. The Finish Line, Inc., together with its subsidiaries, operates as a mall-based specialty retailer in the United States. It operates Finish Line stores that offer performance and athletic casual footwear, apparel, and accessories for men, women, and kids. The company also sells merchandise through its Web site, finishline.com.
9) Gold Resource Corp (GORO)
Gold Resource Corp has a Analysts' Rating of 1.00 and Current Ratio of 3.91 and Quick Ratio of 3.60. The short interest was 13.93% as of 05/27/2012. Gold Resource Corporation, an exploration stage company, engages in the exploration for and production of gold and silver in Mexico. It also explores copper, lead, and zinc ores. The company holds a 100% interest in 6 properties, including the El Aguila Project, the El Rey property, the Las Margaritas property, the Solaga property, the Alta Gracia property, and the El Chamizo property located in southern State of Oaxaca.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.