Top 10 Portfolio: Under the Radar
BOSTON (TheStreet) -- To provide greater transparency into TheStreet.com's "Under the Radar" picks, we have created an equally weighted portfolio of our 10 favorite small-cap stocks on Stockpickr.
Here is a synopsis of the portfolio.
Bucyrus
( BUCY) sells mining equipment, including draglines and blast-hole drills. The company has a market value of $4.6 billion. Its stock trades at a price-to-projected-earnings ratio of 12, a discount to peers. During the past three years, Bucyrus has increased revenue 53% annually, on average.
CARBO Ceramics
(CRR) - Get Free Report
sells ceramic proppant used for natural-gas drilling. The company has a market value of $1.4 billion. Its stock trades at a price-to-projected-earnings ratio of 18, a discount to peers. It returned 71% in the past year, though at the current value, the company may have more room to gain.
Conseco
(CNO) - Get Free Report
sells supplemental life insurance and annuities to seniors. It has a market value of $1.3 billion. Its stock trades at a price-to-projected-earnings ratio of 8.3, a discount to peers. Major holders include hedge-fund managers David Tepper and John Paulson.
Hedge-Fund Managers Bet on Conseco
China North East Petroleum
(NEP) - Get Free Report
drills for oil and gas in the Jilin region of China. The company has a market value of $224 million. Its stock trades at a price-to-projected-earnings ratio of 7.3, a discount to peers. The company's 28% net margin trumps those of larger peers, including
Exxon Mobil
(XOM) - Get Free Report
and
Chevron
(CVX) - Get Free Report
.
Diamond Foods
(DMND)
sells nuts and other snack foods. The company has a market value of $652 million. Its stock trades at a price-to-projected-earnings ratio of 18, a premium to peers. It has a PEG ratio, a measure of value relative to growth, of 0.8, implying cheap shares.
Einstein Noah Restaurant Group
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owns and franchises "bagel specialty" restaurants. The company has a market value of $189 million. Its stock sells at a price-to-projected-earnings ratio of 12, a discount to peers. Value investor David Einhorn owns a 66% stake.
Perrigo
(PRGO) - Get Free Report
sells over-the-counter store-brand pharmaceuticals. The company has a market value of $4.4 billion. Its stock trades at a price-to-projected-earnings ratio of 17, a premium to competitors. The shares are cheap on the basis of book value and sales.
Spectrum Control
(SPEC)
designs high-tech components to regulate electronic performance. The company has a market value of $147 million. Its stock trades at a price-to-projected earnings ratio of 12, a discount to peers. The shares are also cheap based on book value, sales and cash flow.
Synaptics
(SYNA) - Get Free Report
designs touch-screens. The company has a market value of $904 million. Its stock trades at a price-to-projected-earnings ratio of 12, a discount to peers. The shares are also cheap based on book value, sales and cash flow.
Telestone Technologies
(TSTC)
sells wireless-communications equipment in China. The company has a market value of $197 million. Its stock trades at a price-to-earnings ratio of 19 and a price-to-book ratio of 3.3, a premium to peers. During the past three years, Telestone has increased revenue 39% annually, on average.
-- Reported by Jake Lynch in Boston.
