50 Best Small Cap Stock Picks for 2012

by on December 26, 2011

in Screens, Small Cap Value Stocks

2013 version is here

Small cap stocks have traditionally outperformed all other asset classes. Small cap value is the best performing asset class over the years. There is also evidence that small cap value stocks lead the market when coming out of recessions. As we look forward to improving economy in 2012, it is important that we keep an healthy allocation to undervalued small cap stocks in our portfolio.

Here at Value Stock Guide, we generally tend to favor small cap stocks. This screen below is a shortlist of some of the best values in the small caps I see in the stock market right now. You may want to download the Excel sheet attached to this post and do your own due diligence as small cap stocks generally carry greater company risk than other asset classes. These stocks have been picked for reasonable Price to Earnings, Price to Book Value, Earnings Growth and PEG ratios. Still, it is important to dig deeper in the financials to understand the capital structure and other key operating indicators.

Be sure to read the other value screens in this series. They are accessible from links on the right at the beginning of this post.

Symbol Company Name Market Cap P/E Last Year Actual Price/Book PEG
AFOP ALLIANCE FIBER OPTIC PRODUCTS INC $70.6M 10.7 1.13 0.44
AOSL ALPHA AND OMEGA SEMICONDUCTOR LTD $187.7M 5 0.72 0.11
BBOX BLACK BOX CORP $509.4M 8.8 0.66 0.91
BOFI BOFI HOLDING INC $182.3M 8.6 1.1 0.49
CAP CAI INTERNATIONAL INC $302.5M 11 1.39 0.63
MOC COMMAND SECURITY CORP $14.8M 9.1 0.76 0.34
COT COTT CORP $618.1M 9.7 1.08 0.94
DMND DIAMOND FOODS INC $626.7M 11.4 1.38 0.52
DGIT DIGITAL GENERATION INC $329.9M 7.2 0.66 0.27
DM DOLAN CO (THE) $272.7M 8.3 0.93 0.52
EEI ECOLOGY AND ENVIRONMENT INC. $67.9M 9.7 1.33 0.76
EFC ELLINGTON FINANCIAL LLC $282.8M 5.6 0.75 0.1
ECPG ENCORE CAPITAL GROUP INC $527.5M 10.8 1.49 0.4
FISI FINANCIAL INSTITUTIONS INC $231.6M 10.5 1.04 0.84
FRF FORTEGRA FINANCIAL CORP $137.2M 7.1 1.05 0.33
GIII G III APPAREL GROUP LTD $498.9M 8.6 1.42 0.4
GTN GRAY TELEVISION INC. $87.9M 10.8 0.78 0.04
HCKT HACKETT GROUP INC (THE) $153.5M 14.1 1.26 0.63
IEC IEC ELECTRONICS CORP $49.1M 8.8 1.46 0.25
ISSI INTEGRATED SILICON SOLUTION INC $255.6M 8.1 1.09 0.25
FSTR L.B. FOSTER COMPANY $291.7M 14.6 1.1 0.63
LGL LGL GROUP INC (THE) $18.4M 1.7 0.71 0.79
MTRN MATERION CORP $508.3M 10.6 1.19 0.97
MTRX MATRIX SERVICE CO $247.6M 13.4 1.25 0.42
MIG MEADOWBROOK INSURANCE GROUP INC $539.1M 9.9 0.93 0.48
BKR MICHAEL BAKER CORP $181.6M 11.6 0.84 0.32
MNRK MONARCH FINANCIAL HOLDINGS INC $46.2M 10.4 0.65 0.71
MPAA MOTORCAR PARTS OF AMERICA INC $92.0M 6.8 0.77 0.12
NEI NETWORK ENGINES INC $42.8M 5 0.47 0.2
IQNT NEUTRAL TANDEM INC $336.1M 11 1.19 0.89
OMN OMNOVA SOLUTIONS INC. $211.6M 5.2 1.44 0.31
OPLK OPLINK COMMUNICATIONS INC $319.9M 9.9 1.15 0.39
PKBK PARKE BANCORP INC $25.9M 4.1 0.43 0.48
PCCC PC CONNECTION INC $301.6M 13.3 1.09 0.76
MALL PC MALL INC $71.8M 9.8 0.65 0.18
RICK RICK’S CABARET INTERNATIONAL INC $85.2M 8.7 1.12 0.46
STBZ STATE BANK FINANCIAL CORP $473.9M 10.8 1.22 0.56
SYX SYSTEMAX INC. $609.9M 14 1.39 0.67
TGB TASEKO MINES LTD $511.8M 7.2 1.07 0.16
GTS TRIPLE-S MANAGEMENT CORP $588.9M 9.9 0.87 0.4
TPC TUTOR PERINI CORP $610.5M 6.1 0.44 0.3
UFI UNIFI INC. $144.2M 5.6 0.51 0.06
UEIC UNIVERSAL ELECTRONICS INC $248.5M 13.4 1.1 0.85
VIAS VIASYSTEMS GROUP INC $342.4M 11.3 1.26 0.22
VOXX VOXX INTERNATIONAL CORP $198.0M 8 0.49 0.38
VSEC VSE CORP $121.5M 5 0.88 0.24
WRES WARREN RESOURCES INC $223.9M 10.1 1.3 0.52
WBCO WASHINGTON BANKING CO $183.4M 7.8 1.1 0.92
WSTL WESTELL TECHNOLOGIES INC $153.6M 9.8 0.87 0.56
XRTX XYRATEX LTD $404.7M 3.3 1.13 0.39

 

The Value Stock Guide Premium Portfolio owns a few names in this list. It is expected that some of the small cap value stocks in this list will pass my further filters and make it to the VSG Watch List (available to our free email subscribers). A smaller number of these small cap value stocks might be attractive enough to be rated as a Buy for our members. Deeper due diligence report is published for all the Buy recommended stocks inside the member’s area, so if you are interested you may want to sign up.

DownloadExcel Spreadsheet


What you should keep in mind when investing in small cap value stocks

Undervalued small cap stocks are typically distressed for a reason and require much deeper due diligence than most investors are prepared to do. When investing in small cap value stocks, also bear in mind that many of these stocks can be less liquid so patience is required. It can be a volatile market in small caps so you should always follow your asset allocation plan.

This post is included in the Self Directed Investing for Retirement Carnival

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