RealBiz Media Group, Inc. (OTCQB: RBIZ) is one of the fastest-rising small-cap stocks in the online real estate segment of the technology sector. Below are some of the reasons it managed to be one, based on the criteria set by world-recognized investment gurus in their analyses on the Nasdaq website.
P/B ratio is one of the criteria of the methodology established by Benjamin Graham, the father of value investing. Based on the methodology, a company's price to book ratio when multiplied by its P/E should have a total not greater than 22 in order to pass the criterion. Results reveal RBIZ's P/B ratio to be 3.18.
RBIZ's earnings have shown an upward trend through the years. Based on value investor Validea Momentum's methodology, to pass its earnings trend criterion, a company's earnings should reflect a rising trend for the last few years, with only one dip occurring in between fiscal years. RBIZ's EPS yearly were -10.30, -18.45, -2.97, -2.48, and -0.26 for the last five years.
The same is true for its recorded earnings for the past two quarters, based on the methodology developed by contrarian investor David Dreman. RBIZ's earnings per share for Q1 and Q2 were -0.03 and 0.02.
Earnings Per Share (NYSEARCA:EPS) Growth
RBIZ's earnings per share change during the quarter as compared to the same quarter the previous year is 87.50 percent, based on Validea Momentum's findings. According to Validea Momentum's methodology, a company has to surpass an 18 percent EPS change in ordered to be considered expanding.
One of the criteria on conservative growth investor and Wall Street Week host Martin Zweig's methodology is positive quarterly earnings. For Zweig, earnings should grow "faster than they were a year ago, the past three quarters, and the past three years." RBIZ's EPS growth for the quarter, -87.50, has increased as compared to the growth rate of the past three quarters' earnings, -94.23 (versus the past three quarters of a year prior). This movement allowed RBIZ to pass Zweig's EPS growth requirement.
Total Debt/Equity Ratio
RBIZ's total debt/equity ratio is 15.30 percent, allowing it to pass the debt/equity ratio criterion used by gurus Kenneth Fisher, David Dreman, Martin Zweig and Validea Momentum's methodologies in determining the level of investment risks of a company and revenue potential. RBIZ's debt/equity ratio is also less than the average 146.82 percent ratio for its sector which means it's in good standing.
Decreasing Long-Term Debt/Equity
Validea Momentum states in its analysis that companies that are able to lessen their debt in three years, or with a debt/equity ratio below 2, "are looked at favorably." RBIZ has a debt/equity ratio of 0.00 percent, Validea noted.
Sector's Relative Strength
RBIZ belongs to a sector that has proven "attractive" to investors. According to Validea Momentum's methodology, a sector is considered as such if one other player in the sector has a relative strength of 80 percent. RBIZ's Industry has 21 companies with a relative strength over 80.