Stockpickr: The Top Small-Cap Value Plays

As Warren Buffett has said, the three most important words in investing are "margin of safety." Although small-cap companies offer the highest potential reward -- small-caps that graduate to large-caps offer multiple 1,000% returns -- they also are most likely to fall apart and become worthless.

At Stockpickr we keep track of, and update regularly, a portfolio of small-cap value plays. These are stocks with market caps of less than $1 billion, P/E ratios of less than 10 and little or no debt.

For whatever reason the market has abandoned them, but they often are candidates to be acquired or bought up by the large mutual funds once Wall Street recognizes the potential of their earnings.

Focusing on little debt ensures that liabilities won't eventually take over and destroy the company. This gives us -- to some extent -- a margin of safety. In addition to the link above, you can find this portfolio and other similar portfolios in our Today's Lists section on Stockpickr. ...