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Using GARP to Find Investing Opportunities

When trying to identify unique opportunities in the market, one metric that has been tried and true by many successful and notable investors is using the GARP method. GARP, which is growth at a
Robert Maltbie Jr., CFA is the Chief Investment Officer and Portfolio Manager at Millennium Asset Management, and Founder of Singular Research. Robert has over 30 years of experience in money management. Manages/advises over $120 million in assets. Millennium is sub advisor for 40 Act Long- Short Equity Fund, which recently ranked in the top 2% of all funds in its category. This fund allows mutual fund investors access to top performing hedge fund expertise with innovative risk management strategies. Millennium is also GP to Argonaut 2000 LP. Fund, A top performing hedge fund with a strong nine-year track record of outperformance vs. most US domestic equity indices with only two down years. 
Robert Maltbie Jr., CFA is the Chief Investment Officer and Portfolio Manager at Millennium Asset Management, and Founder of Singular Research. Robert has over 30 years of experience in money management. Manages/advises over $120 million in assets. Millennium is sub advisor for 40 Act Long- Short Equity Fund, which recently ranked in the top 2% of all funds in its category. This fund allows mutual fund investors access to top performing hedge fund expertise with innovative risk management strategies. Millennium is also GP to Argonaut 2000 LP. Fund, A top performing hedge fund with a strong nine-year track record of outperformance vs. most US domestic equity indices with only two down years. 

When trying to identify unique opportunities in the market, one metric that has been tried and true by many successful and notable investors is using the GARP method. GARP, which is growth at a reasonable price, is a strategy that aims to combine principles of both growth investing and value investing when screening stocks. Given that Singular Research’s primary focus is uncovering small-cap stocks that tend to fall within both categories, it is easy to see why GARP is a valuable tool for what our firm does.

Here are eight companies that showed met our criteria in a recent screen:

Company Name

Last Trade

Market Cap

Return On Equity

Return On Assets

Forward PE

Earnings Growth Past 5 Year

INSIDERS

Total Debt/Equity

J & J Snack Foods (JJSF)

51.75

972.3M

12.964

9.108

17.84

18.513

21.402

0.167

Cabot Microelectronics (CCMP)

37.13

835.7M

8.211

7.434

12.59

15.072

5.727

0.002

Sonus Networks (SONS)

2.86

798.9M

-3.045

-1.382

143

100

24.568

0.046

Ultratech (UTEK)

28.13

734.6M

14.884

8.669

14.96

57.646

3.368

0.397

Medidata Solution (MDSO)

26.41

631.9M

50.757

10.731

18.6

62.538

12.682

0.24

Tejon Ranch Co Co (TRC)

29.66

592.8M

5.469

4.277

0

45.952

1.061

0.097

Career Education (CECO)

7.32

494.4M

-0.482

10.231

10.76

21.744

0.588

0.13

Echo Global Logis (ECHO)

16.32

364.5M

10.743

6.537

16.32

35.188

39.862

0.167

Disclosures: To read Singular Research’s important disclosures, click here. For the full March 2012 Market Indicator & Strategy Report, and other research reports from Singular Research, click here.

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