Thursday, July 30, 2009

5 Overlooked Stocks Poised for Growth?

These stocks are covered by fewer than 5 analysts, but they have increased both their earnings and sales by 10% or more over the past 12 months.

Company Ticker Industry Share
Past Year
Citi Trends CTRN Clothing stores 60 $23.62 13 17.5
AZZ AZZ Industrial equipment 32.24 28 29 11.3
America's Car-Mart CRMT Used car dealerships 17.66 28 16 12.0
Global Cash Access Holdings GCA Credit services 6.71 202 20 9.0
Milti-FinelineElectronix MFLX Citcuit boardmanufacturing 19.94 71 25 13.0

America’s Car-Mart (CRMT) specializes in low-end, used cars in states like Kentucky,Arkansas, and Oklahoma. Sales were up almost 3% and profits were up 8%, in the most recent quarter. And management used this cash flow to pay down some of their debt, which is a good sign.

Global Cash Access Holdings
(GCA): Global Cash is expected to increase profits 11% and sales 8%, while the likes of MGM and Las Vegas Sands are losing money due to less travel. Global Cash makes the "3-in-1" cash machines that let gamblers get cash from their debit cards, or attempt a cash advance on their credit card once their debit is tapped out. This company is clearly not a buy for the socially conscious investor!

Citi Trends (CTRN) has about 350 stores in 22 states and appeals to the African-American consumers and offering urban apparel products (according to their financial filings). New stores earn the initial startup costs in about a year, and had double-digit earnings percentages recently as well as being debt-free and maintaining $3 per share in cash.

Multi-Fineline Electronix (MFLX) designs and manufactures flexible printed circuit boards for mobile phones, smart mobile devices, consumer products, portable bar code scanners, personal digital assistants, computer/storage devices, and medical devices. It sports a 6.2% Revenue Growth for the last quarter and 106.68M in cash, 10.56M in debt.

AZZ (AZZ) manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets in the United States and Canada. It has 75.82M in free cash flow and $33 in Revenue Per Share.


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