arjun's  Instablog

arjun
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I'm a value investor, focused on small cap stocks anywhere in the world. I formerly worked as an investment banking analyst at JPMorgan and Citi. I graduated last year from Columbia Business School MBA, with a concentration in finance and investing. You can contact me at asingh10@gsb.columbia.edu
  • Piotroski 9 value stock 1 comment
    Oct 11, 2010 1:09 PM | about stocks: CGL.A

     

    Let me know your thoughts and if I am missing something, but this looks like a phenomenal opportunity that meets the Piotroski 9 criteria and is in the bottom 20% of the market on P/B:

     

    Cagle's, Inc (NYSEMKT:CGL.A)

    Market cap 32.64 million (ie: very small and overlooked by everyone)

    Trading at 0.8x book value. 

    MRQ ROAE: 37.6%

     

    Piotroski 9 criteria:

     

    Year over year growth:

    ROA up: Up (negative in 2008); also up last twelve months vs. yoy

    Cash flow from operations > Net income? Yes

    Cash flow from operations > 0? Yes

    Turnover: up 7%

    Long term debt / assets: Down 10%

    Current ratio: Up14%

    Weighted Average Shares: Flat

    Gross margin: Up (negative in 2008); also up last twelve months vs. yoy

     



    Disclosure: No positions
    Stocks: CGL.A
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  • spiny
    , contributor
    Comments (2) | Send Message
     
    One criteria is missing. There's only 8 points in your list.

     

    I think net income > 0 is missing?
    27 Oct 2010, 10:23 AM Reply Like
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