High Quality High Yield Screen
- Published: 08 August 2016
Investors are searching for income in the current low-rate environment. Among the alternatives to traditional bonds are large-cap stocks and international securities, but there are some small-cap companies in the U.S. that can deliver a respectable yield as well. They may offer more volatility, but there are some very solid businesses that have relatively stable operating histories. This screen was developed to find these high-yielding small-caps that are led by quality management teams.
Maximum market cap of $2 billion
Trailing twelve month yield greater than 3%
5-year dividend growth rate greater than 8%
10-year median return on invested capital greater than 10%
Beneish M-Score less than -2.22 (A measure used to identify companies that are manipulating their earnings. For more information: Investopedia Beneish M-Score.)
Altman Z-Score greater than 2.99 (A measure used to identify companies that are in distress and are likely to enter bankruptcy. For more information: Investopedia Altman Z-Score.).
The results include companies with a range of market caps, operating in a diverse set of businesses. I will touch on a few below.
It's Not Sears, It's Sears Hometown
- Published: 15 July 2016
Summer has been slow, but a few good small-cap links follow.
Not small-cap, but I think Richard Bernstein makes some good points: Rabidly Risk Averse (Rbadvisors.com)
Underlooked CSW Industrials Now On Sale (SeekingAlpha)
Point-in-Time Case Study (2014): Todd Sullivan on Sears Hometown (Greatinvestors.tv)
Stewart Information Services: A Timely Off-The-Run Opportunity With 40% Upside (SeekingAlpha)
Don't Let a Brexit Scare You Away from Small-Cap Stocks
- Published: 28 June 2016
The financial world has been fixated on Brexit this week and how it will affect their investments. It’s a nice time to be invested in small-cap companies as most have no direct exposure to the European continent. However, this fact did little to shield them from the U.S. market downturn as they were casualties of the risk-off trade. Now’s a great time to look for small-cap companies, with solid businesses, that have very little to do with the Brexit turmoil. Below are some links, to small-cap value ideas, to get investors started.
Sharps Compliance Corp (SMED) (ValueInvestorsClub)
Time Inc (TIME) (ValueInvestorsClub)
Finding Deep Value In The Small-Cap Market (Valuewalk.com)
Crossroads Capital Inc. (XRDC) (ValueInvestorsClub)
Uncovering Alpha in Microcaps & Special Situations: Peter Rabover, Artko Capital (hvst.com)
RV Sales Roll, Proving They're Not Just for the Grandparents Anymore (Yahoo)