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  • 3 Low-Debt Mid Cap Tech Stocks Set For Growth

    When we first hear about a company and learn that it is growing quickly, to the casual observer it may seem like the business was started recently. But in most instances, the founders and employees have been working hard for a long time and the new found attention can take everyone by surprise. That is why it is key for companies with projected EPS growth rates above 25% for the next year to have a sound capital structure. When a company wants to grow, it is essential that any debt they may have is manageable and does not compete with expansion strategies. To find technology companies with these qualities, we searched for stocks at the mid cap level and ran a scan to find those that are projected for high growth and have minimal debt. To learn more, take a look at the graphs and summaries below.

    The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.

    EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

    We first looked for mid cap technology stocks. We then looked for companies that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). From here, we then looked for companies that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%).

    Do you think these mid-cap stocks will perform well? Use our list to help with your own analysis.

    1) Research In Motion Limited (RIMM)

    SectorTechnology
    IndustryDiversified Communication Services
    Market Cap$3.42B
    Beta1.68

    RIMM stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.00
    1-Year Projected Earnings Per Share Growth Rate58.60%
    Short Interest19.66%

    Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. The company's products include BlackBerry smartphones and accessories, including bundles, cases, audio and memory products, Bluetooth, chargers, batteries and doors, and card readers; SureType, a keyboard technology, which allows users to compose messages using single-handed operation or two-handed thumb-typing; and SurePress, a touch screen that helps in navigation and typing. Its products provide access to time-sensitive information, including email, phone, short messaging service, and Internet and intranet-based applications.

    The company's products also enable third party developers and manufacturers to enhance their products and services with wireless connectivity to data. Research In Motion Limited markets and sells its products directly, as well as through strategic partners and distribution channels. It has a strategic alliance with Hewlett-Packard Company to deliver a portfolio of solutions for business mobility on the BlackBerry platform. The company was founded in 1984 and is headquartered in Waterloo, Canada with additional offices in North America, Europe, and the Asia Pacific.

    2) Qihoo 360 Technology Co. Ltd (NYSE:QIHU)

    SectorTechnology
    IndustryInternet Service Providers
    Market Cap$2.79B
    Beta-

    QIHU stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.00
    1-Year Projected Earnings Per Share Growth Rate53.52%
    Short Interest13.93%

    Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users' computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company's platform products comprise 360 Safe Browser, a Web browser; 360 Personal Start-up Page, a default homepage of 360 Safe Browser and a key access point to popular and preferred information and applications; 360 Application Store, a key access point to securely obtain and manage software and applications; and 360 Safebox, a solution that protects users against thefts of personal account information.

    It also provides online advertising services, including online marketing services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. Qihoo 360 Technology Co. Ltd. has strategic partnership with China Network Television. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. was founded in 2005 and is based in Beijing, the People's Republic of China.

    3) Cepheid (NASDAQ:CPHD)

    SectorTechnology
    IndustryScientific & Technical Instruments
    Market Cap$2.55B
    Beta1.15

    CPHD stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.01
    1-Year Projected Earnings Per Share Growth Rate1200.00%
    Short Interest15.18%

    Cepheid, a molecular diagnostics company, engages in developing, manufacturing, and marketing integrated systems for testing in the clinical market, as well as for application in legacy biothreat, industrial, and partner markets. Its systems enable molecular testing for organisms and genetic-based diseases by automation. The company offers GeneXpert system that integrates sample preparation in addition to DNA amplification and detection; and SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample. The GeneXpert system is designed for reference laboratories, hospital central laboratories, and satellite testing locations, such as emergency departments and intensive care units within hospitals and doctors' offices. Cepheid also provides GeneXpert Infinity System for high volume testing.

    The company offers tests for the GeneXpert and the SmartCycler systems in the areas of healthcare associated infections, critical infectious disease, genetics, women's health, and oncology. These tests include U.S. Food and Drug Administration (FDA) cleared products, CE marked products, analyte specific reagents, and research use only tests in the clinical market. In the industrial market, it sells its SmartCycler system along with general use polymerase chain reaction reagents and reaction tubes. Cepheid sells its products its direct sales force and through third-party distributors worldwide. It has collaboration agreements with Novartis, Foundation for Innovative New Diagnostics, Life Technologies Corporation, and Northrop Grumman Corporation. The company was founded in 1996 and is headquartered in Sunnyvale, California.

    *Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/06/2012.

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

    Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

    Sep 12 11:29 AM | Link | Comment!
  • 3 Cash-Heavy Small Cap Industrial Stocks Holding Down The Debt

    Most investors recognize that it takes hard work and discipline to make a company successful. Often it boils down to wise fiscal controls to guide decisions. Companies that build up a cash reserve demonstrate their understanding that business doesn't always go as planned. They also know that a high level of liquidity allows a company to make strategic moves that may require additional funds. With this in mind, we developed a short list of industrial small cap stocks that have substantial cash reserves. In addition, they have minimal debt which further highlights their strong fiscal oversight. Take a look at the list below to see if any of these small cap industrial stocks speak to you.

    The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.

    The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.

    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 industrial stocks. We then looked for companies that operate with little to no long term debt (Long Term D/E Ratio<.1). We then looked for companies that operate with little to no debt (D/E Ratio<.1). From here, we then looked for companies that have strong liquidity (Current Ratio>2)(Quick Ratio>2).

    Do you think these small-cap stocks are worth more than the market currently says? Please use our list to assist with your own analysis.

    1) Matrix Service Co. (NASDAQ:MTRX)

    SectorIndustrial Goods
    IndustryHeavy Construction
    Market Cap$300.78M
    Beta1.80

    MTRX stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.01
    Debt/Equity Ratio0.01
    Current Ratio2.28
    Quick Ratio2.25
    Short Interest2.86%

    Matrix Service Company provides construction, and repair and maintenance services primarily to the energy and energy related industries in the United States and internationally. The company operates in two segments, Construction Services, and Repair and Maintenance Services. The Construction Services segment offers aboveground storage tanks for the bulk storage/terminal industry, capital construction for the downstream petroleum industry, and specialty construction, as well as electrical/instrumentation services, such as civil/structural, mechanical, piping, electrical and instrumentation, millwrighting, and fabrication for various industries.

    This segment focuses on renovations, retrofits, modifications, and expansions to existing facilities, as well as construction of new facilities. The Repair and Maintenance Services segment provides aboveground storage tank repair and maintenance services, including tank inspection, cleaning, and American Society of Mechanical Engineers code repairs; planned major and routine maintenance for the downstream petroleum industry; specialty repair and maintenance services; and electrical and instrumentation repair and maintenance. It serves integrated oil companies, independent petroleum refiners, power companies, engineering firms, general contractors, and petrochemical and industrial gas companies, as well as pipeline, terminal, and oil and gas marketing companies. The company was founded in 1989 and is headquartered in Tulsa, Oklahoma.

    2) Global Power Equipment Group Inc. (NYSE:GLPW)

    SectorIndustrial Goods
    IndustryDiversified Machinery
    Market Cap$331.10M
    Beta1.40

    GLPW stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.00
    Debt/Equity Ratio0.00
    Current Ratio3.98
    Quick Ratio3.85
    Short Interest7.69%

    Global Power Equipment Group Inc. and its subsidiaries designs, engineers, and manufactures gas turbine auxiliary equipment; and provides routine and specialty maintenance services to customers in the utility and industrial sectors. Its gas turbine auxiliary equipment include filter houses, inlet systems, exhaust systems, diverter dampers, selective catalytic emission reduction systems, packaged skids, and precision parts and specialty fabrications. These products are primarily used in the operation of gas turbine power plants, as well as for other industrial, energy, and power-related applications. The company's service offerings consist of nuclear power plant modification, maintenance, and construction; and fossil fuel and hydroelectric power plant modification and construction services.

    It also provides specialty services comprising cleaning, surface preparation, coatings application, quality control, and inspection testing services; industrial insulation services, primarily in process-piping installations; abatement services for the removal of asbestos and removal of heavy metal based coatings, such as lead paint; replacing, repairing, and upgrading industrial facility roofing systems; and integrated valve and actuator services that include inspection, preventative maintenance, and repair of various types of valves and actuators.

    It serves original equipment manufacturers; engineering, procurement, and construction contractors; operators of power generation facilities; and firms engaged in various process-related industries, as well as utility companies. The company operates primarily in the United States, Canada, and Mexico; and Europe, Asia, and the Middle East; and internationally. Global Power Equipment Group Inc. was founded in 1998 and is headquartered in Irving, Texas.

    3) Mueller Industries Inc. (NYSE:MLI)

    SectorIndustrial Goods
    IndustryMetal Fabrication
    Market Cap$1.66B
    Beta0.93

    MLI stock chart

    Key Metrics

    Long Term Debt/Equity Ratio0.01
    Debt/Equity Ratio0.04
    Current Ratio3.93
    Quick Ratio2.97
    Short Interest1.73%

    Mueller Industries, Inc. engages in the manufacture and sale of copper, brass, plastic, and aluminum products in the United States, Canada, Mexico, Great Britain, and China. It operates in two segments, Plumbing and Refrigeration, and Original Equipment Manufacturers (OEM). The Plumbing and Refrigeration segment offers copper tubes in straight lengths and coils for plumbing applications; copper and plastic fittings, line sets, and related components for use in water distribution systems, heating systems, air-conditioning, and refrigeration applications, as well as for drainage, waste, and vent systems.

    It also fabricates steel pipe nipples; and resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products to plumbing wholesalers and building materials retailers, as well as to distributors of manufactured housing and recreational vehicle industries. This segment markets its products directly, as well as through a network of agents. The OEM segment manufactures and sells brass, bronze, and copper alloy rods for applications that require a high degree of machinability, wear and corrosion resistance, and electrical conductivity; brass and aluminum forgings for use in various products, including automotive components, brass fittings, industrial machinery, valve bodies, gear blanks, and computer hardware; and cold-formed aluminum and copper impact extrusions for use in automotive, military ordnance, aerospace, and general manufacturing industries.

    It also manufactures and fabricates valves and custom OEM products for refrigeration and air-conditioning, gas appliance, and barbecue grill applications; and manufactures shaped and formed tube for baseboard heating, appliances, and medical instruments. This segment sells its products directly to OEMs, as well as to other manufacturers and distributors. The company was founded in 1900 and is headquartered in Memphis, Tennessee.

    *Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/04/2012.

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

    Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

    Sep 12 11:29 AM | Link | Comment!
  • 4 High Profit Oil & Gas Stocks On Track For Growth

    In thinking about the factors that correlate to an increase in a stock's value, two qualities come to mind: profit and growth. A company pulling in strong profits sends a message that there is evident demand, operational expenses are efficient, and management has set pricing at a level that generates profits. These profits will be very helpful to a company that has projected EPS growth rates above 25% for the coming year as they will provide funding to fuel the growth. If stocks with the traits of high profits and impressive growth projections appeal to you, then you will find our list of oil and gas stocks quite interesting.

    EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

    The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue

    Return on Assets [ROA] illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.

    We first looked for oil & gas stocks. We then looked for companies with estimated high-growth, with 1-year projected EPS growth above 25%. We then looked for businesses that have been able to retain strong profit margins on the bottom line (Net Margin [TTM]>10%)(ROA [TTM]>10%). We did not screen out any market caps.

    Do you think these stocks hold value that has yet to be priced in? Please use our list to assist with your own analysis.

    1) Continental Resources Inc. (NYSE:CLR)

    SectorBasic Materials
    IndustryIndependent Oil & Gas
    Market Cap$13.26B
    Beta1.78

    CLR stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate35.99%
    Net Margin32.29%
    Return on Assets13.47%
    Short Interest9.60%

    Continental Resources, Inc. engages in the exploration, development, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States. The company primarily sells its oil and natural gas production to end users, as well as to midstream marketing companies or oil refining companies at the lease. As of December 31, 2011, its estimated proved reserves were 508.4 million barrels of crude oil equivalent, with estimated proved developed reserves of 205.2 million barrels of crude oil equivalent. The company had interests in 3,255 wells and served as the operator of 2,082 of these wells. Continental Resources, Inc. was founded in 1967 and is headquartered in Enid, Oklahoma.

    2) Abraxas Petroleum Corp. (NASDAQ:AXAS)

    SectorBasic Materials
    IndustryIndependent Oil & Gas
    Market Cap$177.29M
    Beta1.53

    AXAS stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate70.00%
    Net Margin39.95%
    Return on Assets11.84%
    Short Interest13.31%

    Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, exploitation, development, and production of oil and gas in the United States and Canada. The company operates oil and gas assets in the Rocky Mountain, Mid-Continent, Permian Basin, and onshore Gulf Coast regions of the United States, as well as in the province of Alberta, Canada. As of December 31, 2011, its estimated net proved reserves were 29.0 million barrels of oil equivalent. The company was founded in 1977 and is based in San Antonio, Texas.

    3) Callon Petroleum Co. (NYSE:CPE)

    SectorBasic Materials
    IndustryIndependent Oil & Gas
    Market Cap$218.77M
    Beta2.49

    CPE stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate591.67%
    Net Margin69.87%
    Return on Assets25.13%
    Short Interest3.45%

    Callon Petroleum Company engages in the acquisition, exploration, development, and production of crude oil and natural gas properties. The company's properties are located in the Permian Basin in west Texas; the Haynesville Shale in northern Louisiana; and the Gulf of Mexico. As of December 31, 2011, its estimated net proved reserves totaled 15.9 million barrel of oil equivalent, including 10.1 million barrels of oil and 35.1 billion cubic feet of natural gas. The company was founded in 1950 and is headquartered in Natchez, Mississippi.

    4) Rosetta Resources, Inc. (NASDAQ:ROSE)

    SectorBasic Materials
    IndustryIndependent Oil & Gas
    Market Cap$2.28B
    Beta2.10

    ROSE stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate44.81%
    Net Margin29.71%
    Return on Assets15.09%
    Short Interest9.86%

    Rosetta Resources Inc., an independent exploration and production company, engages in the acquisition, exploration, development, and production of onshore oil and gas resources in the United States. It owns producing and non-producing oil and gas properties located primarily in South Texas, including the Eagle Ford, and in the Southern Alberta Basin in Northwest Montana. As of December 31, 2011, the company had an estimated 965 billion cubic feet equivalent of proved reserves, including 36,370 million barrels of oil, 50,219 million barrels of natural gas liquids, and 446 billion cubic feet of natural gas, as well as drilled 53 net wells. Rosetta Resources Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

    *Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/06/2012.

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

    Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

    Sep 12 11:29 AM | Link | Comment!
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