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Small-Cap Stars: Services Stocks

By  +Follow October 15, 2013 2:53AM
Tickers Mentioned:

Over the past year, consumers and businesses in the US have been confronted with a number of substantial and fairly unique contingencies that have puts limitations on spending ability.

First came the expiration of the Bush-era tax cuts, which was followed quickly by sequestration, and then a government shutdown capped by the threat of the nation defaulting on its debt, all of which has taken place against the backdrop of the threat of reduced stimulus spending out of the Federal Reserve. All of these factors have taken a bite out of the ability of individual consumers, families and businesses to spend money on whatever it is they need.

These conditions have created an uncertain environment for all economic sectors, and have left investors looking for new and better equity opportunities. Companies operating in the services sector have been under pressure as their clients or prospective clients rethink their budgets with a greater emphasis on saving rather than spending. Needless to say, some have managed better than others.

Thankfully, Equities.com has just recently unveiled its Small-Cap Stars series. As a means of locating and scrutinizing some of the most promising investment opportunities in each sector of the economy, Equities.com’s very own analysts have compiled a list of small-caps based on the most relevant, sector-specific fundamentals.

Our research analysts determined the following set of benchmarks for the most compelling small–cap companies in the consumer services sector:

Firm Value:  This barometer gauges the size and long-term health of a business.

Pre-Tax Operating Margins: Pre-tax operating income is one of the best barometers by which to assess the basic health of a business. A high margin is consistent with the theory that companies will perform better with extra pricing control.

Dividends: This metric is based on whether a company actually issues a dividend, as opposed to how much the dividend was. Dividends are counter-intuitive to companies in growth mode.

Market Debt/Equity: Companies obtaining capital through debt are likely healthier than companies raising capital through equity offerings because of the significantly more stringent requirements to access credit from banks.

Institutional Holdings:  Significant institutional ownership suggests a company’s potential is validated by major asset management firms, or the “smart money.”

A brief glance at the many companies that match up to these criteria should be sufficient to justify the worth of the methodology by which they were selected:

Phoenix New Media Limited (FENG) – The $888 million Chinese company is an internet and television content provider with that is very much at home in the all-important mobile segment. Its operations cover all types of content from news, to entertainment, to blogging, with operations limited for the time being to its home country. Founded in 2007, the shares for FENG are currently trading above $11 each, having gained 220 percent on the year.

Multimedia Games Inc. (MGAM) – The $945 million company designs and sells gaming machines primarily to casinos, including those located on Indian reservations in the US where restrictions on gambling are not as severe. The company is selling shares for over $32 each, having doubled in value so far this year on an overall advance of 122 percent.

Cumulus Media Inc. (CMLS) – The $977 million company is the owner and operator of commercial radio station clusters throughout the US. With over 500 stations in over 100 markets, the company makes the bulk of its revenues from selling advertising at the local, regional and national levels. Shares have more than doubled in value on a year-to-date basis (a gain of 107 percent), to the current price of $5.68.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for CMLS
18 Sep 14 10:00:18
$CMLS $ISIS $JRJC $PODD $SGMS $VIMC autocharts @ http://t.co/hj7PGeTQk3
18 Sep 14 09:07:25
$ACHN $AMKR $AVNR $BITA $BKEP $CMLS $GFI $GTAT $PEIX autocharts @ http://t.co/hj7PGeTQk3
18 Sep 14 08:18:25
$CMLS $DGLY $EJ $IDTI $JRJC $NETE $SSRI $TASR $VIMC autocharts @ http://t.co/hj7PGeTQk3
18 Sep 14 07:55:27
Loving $CMLS http://t.co/y5QkLXSFqX
18 Sep 14 05:48:45
17/09 trades recap $NETE .21 $SCOK .48 $IFON .21 $SINO .14 $CMLS .20 $NVTL .32 http://t.co/YSM5UaeGLC
18 Sep 14 04:37:50
Parabolic Sar Buy Signals 1/3 $AGIO $AKS $ALKS $ALTR $AXAS $AXP $BCS $BRCM $CAR $CB $CMC $CMLS $CNC $CODE $COF $COG http://t.co/puPiilLzqv
18 Sep 14 04:29:43
Bullish MACD Crossovers 1/3 $ABT $ALU $ATI $AXAS $AXP $BA $BHI $CMC $CMLS $COF $DD $DEJ $DFS $DISH $DRC $DUK $EOG http://t.co/0Je7iusu0v
18 Sep 14 03:52:32
Stock Rocket
18 Sep 14 02:20:40
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/h5N34SPJ6o $LFL $BTU $CMLS
Stock Rocket
17 Sep 14 23:49:00
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $LFL $BTU $CMLS
Sniper Trader
17 Sep 14 18:46:51
Adding $CMLS - $SIGA - $NYNY - $YGE - $VIMC to the WL.
17 Sep 14 17:12:32
Swing Sell Picks: $CMLS, $FNSR, $MCP, $NUS, $PDS, $TA.CA http://t.co/oFJUATw7nG
17 Sep 14 16:03:46
Smallcap #Stocks Performance $AUXL $EPIQ $YRCW $TGTX $NETE $SIGA $KIOR $CTIC $RJET $HALO $CMLS $PODD more@ http://t.co/Giravo3fg9
17 Sep 14 14:44:24
Cumulus Media Inc. (CMLS) Jumps 8.84% on September 17 $CMLS http://t.co/R14Ezo2C9b
17 Sep 14 13:01:26
Smallcap #Stocks Performance $AUXL $KIOR $TGTX $NETE $YRCW $SIGA $CTIC $DRL $EPIQ $RJET $HALO $CMLS more@ http://t.co/Giravo3fg9
Stock Rocket
17 Sep 14 12:57:13
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $LFL $BTU $CMLS
17 Sep 14 12:05:53
$AMCC $ARWR $AXAS $CLF $CMLS $DGLY $FSL $HZNP $VNET autocharts @ http://t.co/cLiki48C5r
17 Sep 14 11:58:15
$CMLS looks good for more if volume was higher it might be gap candidate!
17 Sep 14 11:05:42
CMLS 4.34 Stock Charts $CMLS Cumulus Media Inc. (NASDAQ) Last Updated: 09/17/2014 13:05:47 CMLS Stock Chart - http://t.co/s7mOS96dni
17 Sep 14 10:47:51
$RSII gained 150% in 4 days! Get our top penny stock picks early: http://t.co/iSqL7zgTT1 $LFL $BTU $CMLS
17 Sep 14 10:43:26
$CMLS let's see what happen
17 Sep 14 09:25:40
$ACHN $CMLS $TKMR autocharts @ http://t.co/cLiki48C5r
Joey Rosa
17 Sep 14 09:13:25
RT @DozenStocks: Smallcap #Stocks Performance $AUXL $NETE $YRCW $LLEN $CTIC $TGTX $APOG $CMLS $VVTV $UCP $RJET $OGXI more@ http://t.co/Gir…
17 Sep 14 08:55:03
Smallcap #Stocks Performance $AUXL $NETE $YRCW $LLEN $CTIC $TGTX $APOG $CMLS $VVTV $UCP $RJET $OGXI more@ http://t.co/Giravo3fg9
Alexander Morris
17 Sep 14 08:54:02
$CMLS: 3mRunaway+:3 [+8%,.7%offHi], FltBO-, tf:3f, FirmTrnd--:+125%; TLM:0.7, DyVol:1.6M:0.2x:0.2x, DyRng:8.8%:1.2x:1.8x (PotLONG),
17 Sep 14 08:51:01
$cmls setting up
17 Sep 14 08:47:53
$AEGR $AVNR $CMLS $LOCK $MBT $RATE $TKMR $TRLA $VNET autocharts @ http://t.co/hj7PGeTQk3
17 Sep 14 08:22:05
$CMLS keeps grinding here
17 Sep 14 08:21:16
$CMLS taaaacccc!
17 Sep 14 08:12:49
$AMCC $BITA $CMCM $CMLS $EGY $HZNP $TKMR autocharts @ http://t.co/hj7PGeTQk3
17 Sep 14 08:01:12
$CMLS on watch
Large Void Bot
17 Sep 14 07:27:10
Daily Reversal (10:27): $CMLS Last: 4.12; pHigh: 4.12; rVol: 1.057; pClose: 3.96; LOD: 3.9800; Perf: 4.0%
16 Sep 14 20:40:02
Cumulus Media Inc (CMLS) 3.96 $CMLS Media Equities Under Review - News Corp., Sirius XM Holdings, CTC Media, C http://t.co/IakU3FZzrh
16 Sep 14 20:37:06
CMLS 3.96 Stock Charts $CMLS Cumulus Media Inc. (NASDAQ) Last Updated: 09/16/2014 22:37:08 CMLS Stock Chart - http://t.co/dsgR5yQ7Nd
16 Sep 14 20:11:24
Our Platinum Penny Stock Picks, Gained 90% In The Past 2 Days! Get our next pick early: http://t.co/hep0lGZUgZ $LFL $BTU $CMLS
16 Sep 14 17:49:48
$cmls $0 in few years. Inability to manage costs with zero rev growth while at same time massive debt will crush any company.
Colin Macleod
16 Sep 14 17:30:25
Handful of Stocks in wild free-falls & breaking down http://t.co/GTKr9EikbR $SHLD $CMLS $IAG $VHC $AMD $VHC $HOG
Trader News Daily
16 Sep 14 15:25:55
http://t.co/PeRPkYu8Uk ranks #1 with over 80% in alert gains today. Related: $VPOR $DRYS $ERBB $ACI $AT $GRPN $SFUN $KGC $HEMP $CMLS $BSBR
16 Sep 14 12:44:48
BLOCK TRADE (Microcap): $CMLS 250,000 shares @ $3.95 [15:44:47]
16 Sep 14 12:26:17
$BRNW Ran Up 145% So Far Today! Huge News: http://t.co/0NGNmaYblA $LFL $BTU $CMLS
16 Sep 14 12:20:21
BLOCK TRADE (Microcap): $CMLS 250,000 shares @ $3.93 [15:20:20]
16 Sep 14 11:14:38
RT @BlockTradeAlert: BLOCK TRADE (Microcap): $CMLS 450,000 shares @ $3.89 [14:03:36]
16 Sep 14 11:03:37
BLOCK TRADE (Microcap): $CMLS 450,000 shares @ $3.89 [14:03:36]
16 Sep 14 10:49:23
$BRNW Ran Up 145% So Far Today! Huge News: http://t.co/agBJ7Ngnzq $LFL $BTU $CMLS
16 Sep 14 10:19:13
RT @SleekMoneycom: Short Interest in Cumulus Media Grows By 27.6% $CMLS http://t.co/l7qN7nI1ak
16 Sep 14 10:12:31
$CMLS at 52WK low
16 Sep 14 08:30:53
$cmls $nadl can't be good for @karenfinerman
Large Void Bot
16 Sep 14 08:04:17
New 52wk Lows: $CMLS
16 Sep 14 01:01:36
$AZFL Gained 68.2% In Just 3 Days, After Our Penny Stock Alert! Huge Update: http://t.co/f6EXGyxEe9 $LFL $BTU $CMLS
Sleek Money
15 Sep 14 22:08:17
Short Interest in Cumulus Media Grows By 27.6% $CMLS http://t.co/l7qN7nI1ak
By  +Follow October 15, 2013 2:53AM



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