4/04/2010

Shareholder Friendly Companies Improving Overlooked Metrics

The premise was to introduce companies filtered by what I believe doesn’t get the same market moving press but does quietly improve value without the immediate price action.I would like to expand on ignored value creation metrics in future posts.

Below are some of the parameters


1) Only Non Financial companies with a market capitalization less than 200 million

2) Reducing debt from 2007 versus the TTM

3) Buying back shares at opportunistic times (Qtr 4 2008 and Qtr 1 2009)

4) Reasonable administrative costs to revenue: Annual SGA/Revenue <.10

5) Reducing share count from 2004 compared to the TTM

6) Average operating income from 2006 to 2009 divided by the current enterprise value greater than the current Operating Income/ Enterprise Value in an effort to identify a potential discount to normalized earnings.

7) Negative 3 and 5 year stock return

8) Positive insider buying 2009 or 2010


One idea that may warrant a closer look is

Please click to review:

2 comments:

Anonymous said...

I'm surprised you don't lower that market cap to look at more unusual situations. I'm just guessing, but it seems like given your capital base, it should be easy to put money to work in companies <$100M even.

ShadowStock said...

I will be looking for ideas that are more "deep value" and smaller;

best
John