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RooneyFinancial
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Trading technologist with a background in futures trading (pit and screen), hedge fund management, equity analysis software design and futures execution software design.
My blog:
Stocks, futures and FX
  • Small Cap Growth at a Reasonable Price (GARP) investing 0 comments
    Jan 1, 2010 3:36 PM | about stocks: BCO, BCONQ.PK, BKC, CBI, DPM, EVEIQ.PK, ETFC, HA, HOKU, KCG, PTRY, RCII, SUNH, SWHC
    Small Cap stocks are generally disregarded and under utilized in the mutual fund industry. I am managing a simulated small cap portfolio and will use this blog to present my thoughts.

    Today I will talk about two stocks.  RCII and NITE.

    Rent-A-Center (RCII)

    I have been accumulating Rent a Center (RCII) as an extreme value buy.  A PEG ration of 1.07 with Price to Sales and Price to Book both below 1.  These metrics make a RCII a stron buy on a quantitative basis. 

    The economy cerainly bolsters the outlook for RCII as well.  With household budgets and credit tightening, consumers may be more inclined to rent major appliances as the recession lingers.  The longer the US economy stuggles, the better RCII will perform.

    NITE Captal Group (NITE)

    NITE has been beaten down on dwindling revenues from trading.  The financial calmity of the past few quarters has hammered this whole industry.  As interest rates begin to tick higher, trading will pick up quickly and market makers like NITE will expand the margins and increase profits.  

    NITE has a Price to Earnings Growth (PEG) ratio of .75.  This is an exteremly acctractive value price with quaterly revenue growth (YoY) of 25%.  I expect NITE to double in price this year from a current price of $15 to $30.



    Disclosure: Long only portfolio
    Themes: Small Cap, GARP Stocks: BCO, BCONQ.PK, BKC, CBI, DPM, EVEIQ.PK, ETFC, HA, HOKU, KCG, PTRY, RCII, SUNH, SWHC
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  • (RCII) A PEG ration of 1.07 with Price to Sales and Price to Book both below 1.
    Jan 1, 2010
  • NITE PEG ratio is .75 with quarterly revenue growth (YoY) of 25%.   
    Jan 1, 2010
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Chinese Renminbi, Currency Translation, GARP, HOKU, Small Cap
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