Date updated:01-18-2008
This is an assorted list of boring, under-followed micro-cap stocks. I look for high inside ownership and institutional ownership below 25%. The minimum market cap is 25mil, and the maximum is 500mil. High ROE is preferred and each stock must appear cheap by one or more traditional valuation metrics (i.e. P/E, P/S, P/B, etc..) It is required that none of these companies operate in "hot" industries, and might even be considered repugnant or obsolete by some investors. In addition, each company must occupy an unusual niche or geographical location that may not attract competitors. My thesis is that a basket of stocks exhibiting the above features will clobber the market, even if the success rate of positive returns is less than 50%.

-
WEL
Boots&coots/int W - $1.47
- 0.00%
- $1.51
Provides various integrated oilfield services for the prevention, emergency response, and restoration of blowouts and well fires. ROE 53%, P/E 12, P/S 1.59 Inside Ownership 46%, Institutional Ownership 4%

-
MEA
Metalico Inc - $4.16
- 0.00%
- $4.62
Engages in the recycling of metals, as well as in the fabrication of lead products. ROE 17%, P/E 19, P/S 0.55 Inside Ownership 32%, Institutional Ownership 7% Recent Insider Buying

-
RMX
Ready Mix Inc. - $3.35
- 0.00%
- $3.30
Provides ready mix concrete, sand, and gravel products, as well as offers various decorative rock products used primarily for landscaping. The company is based in Las Vegas, Nevada. P/E 16, P/S 0.58, P/CF 6.7 Inside Ownership 50%, Institutional Ownership 6.3%

-
RICK
Ricks Cabaret Int - $7.15
- -18.38%
- $8.70
Operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant, and bar operations. Inside Ownership 50%, Institutional Ownership 5.5%

-
AEY
Addvantage Techs - $2.05
- -17.67%
- $2.50
Sells new, surplus, and re-manufactured cable television equipment. ROE 18%, P/E 9, P/S 0.68 Inside Ownership 24%, Institutional Ownership 10% Recent insider buying

-
XPO
Express-1 Expedit - $1.15
- 0.00%
- $1.20
Provides transportation and logistics services. P/E 10, P/S 0.9 Inside Ownership 15%, Institutional Ownership 2% Recent insider buying A Peter Lynch pick.

-
TLF
Tandy Leather Fc - $2.70
- 0.00%
- $2.71
Engages in the retail and wholesale distribution of leather, leather crafts, and related supplies ROE 12.5%, P/E 12, P/S 0.7 Inside Ownership 34%, Institutional Ownership 31%

-
ACU
Acme United Cp - $10.00
- 0.00%
- $11.20
Supplies various cutting, measuring, and safety products to the school, home, office, and industrial markets. ROE 19%, P/E 14, P/S 0.83 Inside Ownership 32%, Institutional Ownership 17.5%
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