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Small-Cap Stars: Services Stocks

By  +Follow October 15, 2013 2:53AM
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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for CMLS
ProVesting
1 Sep 15 12:08:03
$CMLS: Cumulus Media Inc. (NASDAQ:CMLS) Analyst Rating Update: http://t.co/ZssWmUICUZ
Penny Stock Secret
1 Sep 15 08:41:32
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/NovWYe2RAx .. $LFL $BTU $CMLS
Capital Market Labs
1 Sep 15 07:37:49
Interactive Chart -> http://t.co/NJfcf5vUpm $CMLS Assets and Return on Assets are Declining. http://t.co/pXmyPoO2Hg
TimeForGrowth
1 Sep 15 06:39:02
$CMLS: Wall Street analysts bullish on CMLS's earnings growth: http://t.co/KVRTgV2GUR http://t.co/1qQxPUP2d6
Michael James
1 Sep 15 04:37:51
Subscribers Saw A 525% Gain On $GEQU & A SECRET New Pick Is Out! See The Private Info: http://t.co/RzgF9M02nG $LFL $BTU $CMLS
Michael Cook
1 Sep 15 04:37:10
After 3,000% Gains In The Past Year, We Have A Major New Pick Out! Big Update: http://t.co/QTGaTmzV8y $LFL $BTU $CMLS
Paul Henry
1 Sep 15 04:34:40
We Sent A SECRET New Penny Stock Pick To Our Platinum Members! Get Exclusive Special Access: http://t.co/sJCFysLuN7 $LFL $BTU $CMLS
StockenheimerSchmidt
31 Aug 15 22:27:50
Our Stock Alert On $GEQU More Than QUINTUPLED In 2 Months! See Our Next Big Pick: http://t.co/tPsYlfGs5H $LFL $BTU $CMLS
Stockaholics
31 Aug 15 22:27:07
After Nearly 500% Gains In 2 Months On Stock Alerts, We Have A New Pick Ready! Check It Out: http://t.co/IXntHzty4u $LFL $BTU $CMLS
Stock Dawgzz
31 Aug 15 22:26:53
MASSIVE Gains On Penny Stock Picks And The Next Major Pick Is This Week! Big News: http://t.co/hWNboSgA54 $LFL $BTU $CMLS
Penny Stockington
31 Aug 15 22:25:54
Our Platinum Members Have Seen $GEQU Gain 448.62% So Far! See Our Major New Pick Early: http://t.co/K8xZlOSSFL $LFL $BTU $CMLS
Maybach
31 Aug 15 18:58:45
$ACI $BTU $WRES $CMLS $AMKR added one week ago or less #stockmarket #stocks #WallStreet Survivor http://t.co/9t7k6RefDl
Sandman
31 Aug 15 16:33:29
RT @speculatore: $CMLS $1.45--Cumulus Media Inc....Bottom Watch......Chart http://t.co/k4iH96D8GH Perhaps 3rd try is the charm
Bottoms Up
31 Aug 15 16:21:42
$CMLS $1.45--Cumulus Media Inc....Bottom Watch......Chart http://t.co/k4iH96D8GH Perhaps 3rd try is the charm
Capital Market Labs
31 Aug 15 15:27:45
Interactive Chart -> http://t.co/YO24AFtR19 $CMLS Earnings are Declining. http://t.co/2wz21rugAH
Capital Market Labs
31 Aug 15 09:29:43
Interactive Chart -> http://t.co/ED0MpCKNiS $CMLS Return on Assets is Shrinking. http://t.co/RnFOb0Y25h
Penny Stock Secret
31 Aug 15 09:15:33
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/NovWYe2RAx .. $LFL $BTU $CMLS
Insider Monkey
31 Aug 15 08:45:19
Noteworthy Insider Transactions at $CAPL, $EXTR, and $CMLS http://t.co/gnCtXExokI
Insider Monkey News
31 Aug 15 08:45:11
Noteworthy Insider Transactions at $CAPL, $EXTR, and $CMLS http://t.co/MyEsdGb9uI
Paul Henry
31 Aug 15 05:22:26
We Sent A SECRET New Penny Stock Pick To Our Platinum Members! Get Exclusive Special Access: http://t.co/sJCFystTVz $LFL $BTU $CMLS
Michael James
31 Aug 15 05:21:33
Subscribers Saw A 525% Gain On $GEQU & A SECRET New Pick Is Out! See The Private Info: http://t.co/RzgF9M02nG $LFL $BTU $CMLS
Michael Cook
31 Aug 15 05:14:38
After 3,000% Gains In The Past Year, We Have A Major New Pick Out! Big Update: http://t.co/QTGaTmzV8y $LFL $BTU $CMLS
Stockmaster101
31 Aug 15 02:19:58
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/9Vnnw3s1D8 .. $LFL $BTU $CMLS
Stocksguru99
31 Aug 15 01:09:19
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/n4FmW1UTLN .. $MSFG $VIDE $CMLS
Dave
30 Aug 15 16:04:31
http://t.co/L46QQZciCc IN PLAY: $QNST $NM $CMLS $KEG $SGY $SBS $MTU $GSAT $MFA $AUO $HMSY $ARAY $BBG $ONTY http://t.co/TvrpTH29kS
FinSentS NASDAQ
29 Aug 15 15:32:28
$CMLS:US Cumulus Media EVP John W. Dickey Sells 35,000 Shares (CMLS) #CUMULUS MEDIA INC http://t.co/xuL1Xqo5ES #NASDAQ
StockNewsWires
29 Aug 15 09:27:02
$CMLS $HDB: Watch List for Traders: Cumulus Media (NASDAQ:CMLS), HDFC …: http://t.co/LAdQ5psTpX
StockNewsWires
29 Aug 15 09:14:04
$BSX $CMLS: Trader’s Watch List: Boston Scientific Corporation (NYSE:BSX), PVH …: http://t.co/8JQPhpo9g3
Michael Cook
29 Aug 15 09:02:26
After 3,000% Gains In The Past Year, We Have A Major New Pick Out! Big Update: http://t.co/QTGaTmzV8y $LFL $BTU $CMLS
Michael James
29 Aug 15 09:00:40
Subscribers Saw A 525% Gain On $GEQU & A SECRET New Pick Is Out! See The Private Info: http://t.co/RzgF9M02nG $LFL $BTU $CMLS
Paul Henry
29 Aug 15 08:52:47
We Sent A SECRET New Penny Stock Pick To Our Platinum Members! Get Exclusive Special Access: http://t.co/sJCFystTVz $LFL $BTU $CMLS
StockNewsWires
29 Aug 15 08:01:07
$CMLS: Insider Selling: John W. Dickey Sells 35000 Shares of Cumulus …: http://t.co/RGVc0H6rOj
ProVesting
29 Aug 15 08:01:07
$CMLS: John W. Dickey Sells 38307 Shares of Cumulus Media Stock (CMLS): http://t.co/eXyCQT4JbR
The Legacy News
29 Aug 15 07:58:16
Insider Selling: John W. Dickey Sells 35,000 Shares of Cumulus Media Stock $CMLS http://t.co/p4TGbLLEkY
The Legacy News
29 Aug 15 07:58:16
John W. Dickey Sells 38,307 Shares of Cumulus Media Stock $CMLS http://t.co/cTlXIUzvdU
FinSentS NASDAQ
29 Aug 15 07:30:19
$CMLS:US Cumulus Media EVP John W. Dickey Sells 35,000 Shares (CMLS) #CUMULUS MEDIA INC http://t.co/1fvIv9rT4V #NASDAQ
chartguy89
29 Aug 15 01:50:38
CMLS -2.07% Stock Charts $CMLS Cumulus Media Inc. (NASDAQ) Last Updated: 08/29/2015 03:50:42 CMLS Stock Chart http://t.co/8dpRs4MS10
FinSentS NASDAQ
28 Aug 15 23:30:00
$CMLS:US Cumulus Media EVP John W. Dickey Sells 35,000 Shares (CMLS) #CUMULUS MEDIA INC http://t.co/7AIepwAX0D #NASDAQ
ProTradersNews
28 Aug 15 19:22:02
$CMLS $CRM: Insider Selling for August, 28th (ADW.A, AXY, CMLS, CRM, CSBK …: http://t.co/wksj3F9cmN
StockNewsWires
28 Aug 15 19:18:02
$CMLS: Insider Selling: Cumulus Media EVP John W. Dickey Sells 35000 …: http://t.co/bB4EpTmguL
WKRB News
28 Aug 15 19:15:46
Insider Selling: Cumulus Media EVP John W. Dickey Sells 35,000 Shares of Stock $CMLS http://t.co/xll7smwr2h
Media Sentiment
28 Aug 15 18:56:57
$CMLS received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 564
US Banking News
28 Aug 15 18:55:48
Cumulus Media EVP John W. Dickey Sells 35,000 Shares $CMLS http://t.co/mCYEmnm7UP
Consumer News
28 Aug 15 18:43:43
Cumulus Media EVP John W. Dickey Sells 35,000 Shares $CMLS http://t.co/QW8E6Pnjfd #acn
Ticker Report
28 Aug 15 18:42:54
Cumulus Media EVP John W. Dickey Sells 35,000 Shares $CMLS http://t.co/DGFhLOqzmW
Breaking News
28 Aug 15 18:40:03
$CMLS: Cumulus Media EVP John W. Dickey Sells 35000 Shares (CMLS): http://t.co/s6d3rSZXrH
Dakota Financial
28 Aug 15 18:39:06
Cumulus Media EVP John W. Dickey Sells 35,000 Shares $CMLS http://t.co/qccM5lL5We
WKRB News
28 Aug 15 14:22:10
Cumulus Media EVP John W. Dickey Sells 38,307 Shares $CMLS http://t.co/UuR2jmHTkP
Large Void Bot
28 Aug 15 10:51:14
13:51 Pops: $CMLS +3.7%
Breaking News
28 Aug 15 10:11:02
$CMLS: Value Stock in Focus: Cumulus Media Inc. (NASDAQ:CMLS): http://t.co/BcLBYkj3MM
				
				
By  +Follow October 15, 2013 2:53AM
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