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  • 6 Fast Growing Small Cap Stocks With Little Long Term Debt 0 comments
    Oct 23, 2012 4:32 PM | about stocks: BLOX, MM, NSH, SN, SPSC, QRVO

    We all know people who are bold. They tend to talk and laugh a little louder than everyone else. They don't seem to shy away from situations that may bring them into the spotlight. Some people find this brazen behavior compelling and exciting while it may make other people feel uncomfortable. In the investing world, stocks that have very high projected EPS growth rates are similar to those bold individuals. When a company is predicted for rapid expansion, they know a lot more eyes will be on them to see what they achieve. For our list today we have a list of small cap stocks with projected EPS growth rates that start at 340%. Further, they have minimal long term debt which speaks to the overall health of their capital infrastructure. We think you will enjoy reviewing this list of small cap stocks that have set their sights high.

    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 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.

    We first looked for small cap stocks. We then looked for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We next screened for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). From here, we then looked for companies that operate with little to no debt (D/E Ratio<.1). We did not screen out any sectors.

    Do you think these small-cap stocks will trade at a higher valuation? Please use our list to assist with your own analysis.

    1) Infoblox Inc. (NYSE:BLOX)

    Sector Services
    Industry Business Services
    Market Cap $821.21M
    Beta -

    BLOX stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 383.33%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.00
    Short Interest 2.60%

    Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. The company was founded in 1999 and is headquartered in Santa Clara, California.

    2) Millennial Media Inc. (NYSE:MM)

    Sector Services
    Industry Marketing Services
    Market Cap $1.12B
    Beta -

    MM stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 340.00%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.00
    Short Interest 8.55%

    Millennial Media, Inc. provides mobile advertising solutions worldwide. It operates MYDAS, a mobile advertising technology platform for developers and advertisers. The company provides tools and services to developers that allow their apps to display banner ads, interactive rich media ads, and video ads through its platform. The company was founded in 2006 and is headquartered in Baltimore, Maryland.

    3) TriQuint Semiconductor, Inc. (TQNT)

    Sector Technology
    Industry Semiconductor - Integrated Circuits
    Market Cap $797.41M
    Beta 1.97

    TQNT stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 2700.00%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.00
    Short Interest 10.17%

    TriQuint Semiconductor, Inc. provides radio frequency solutions and technology for communications, defense, and aerospace companies worldwide. The company designs, develops, and manufactures RF solutions with gallium arsenide, gallium nitride, bipolar high electron mobility transistor, surface acoustic wave, temperature compensated surface acoustic wave, bulk acoustic wave, copper flip, and wafer level packaging technologies. TriQuint Semiconductor, Inc. was founded in 1981 and is headquartered in Hillsboro, Oregon.

    4) Sanchez Energy Corporation (NYSE:SN)

    Sector Basic Materials
    Industry Independent Oil & Gas
    Market Cap $651.91M
    Beta -

    SN stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 370.00%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.00
    Short Interest 11.44%

    Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and natural gas resources. As of December 31, 2011, it had approximately 91,000 net leasehold acres in the oil and condensate, or black oil and volatile oil, windows of the Eagle Ford Shale in Gonzales, Zavala, Frio, Fayette, Lavaca, Atascosa, Webb, and DeWitt Counties of South Texas; approximately 1,200 net acres in the Haynesville Shale in Natchitoches Parish, Louisiana; and approximately 82,000 net acres in Lewis and Clark, Meagher, and Cascade counties of Montana. The company was founded in 2011 and is headquartered in Houston, Texas.

    5) NuStar GP Holdings, LLC (NYSE:NSH)

    Sector Basic Materials
    Industry Oil & Gas Pipelines
    Market Cap $1.28B
    Beta 0.53

    NSH stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 500.00%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.03
    Short Interest 0.59%

    NuStar GP Holdings, LLC owns general partner and limited partner interests in NuStar Energy L.P. that engages in the terminalling and storage of petroleum products, transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. It holds a 2% general partner interest, 14.3% limited partner interest, and 100% of the incentive distribution rights in NuStar Energy L.P. The company, through NuStar Energy L.P., has terminal facilities in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom, and Turkey. The company was founded in 2000 and is headquartered in San Antonio, Texas.

    6) SPS Commerce, Inc. (NASDAQ:SPSC)

    Sector Services
    Industry Business Services
    Market Cap $546.01M
    Beta -

    SPSC stock chart

    Key Metrics

    1-Year Projected Earnings Per Share Growth Rate 600.00%
    Long Term Debt/Equity Ratio 0.00
    Debt/Equity Ratio 0.00
    Short Interest 3.66%

    SPS Commerce, Inc. provides on-demand supply chain management solutions worldwide. It offers integration, collaboration, connectivity, visibility, and data analytics over the Internet using a software-as-a-service model. SPS Commerce, Inc. provides its solutions through SPSCommerce.net, a hosted software suite that enables suppliers, retailers, distributors, and other customers to manage and fulfill orders. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

    *Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/22/2012.

    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.

    Stocks: BLOX, MM, NSH, SN, SPSC, QRVO
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