- No financial names
- Long-term debt to equity less than 50%
- Companies must be profitable on a trailing 12-month basis
- Minimum market cap of $100 million
In the always interesting world of small-caps, we find a somewhat forgotten name, workforce solutions company Kelly Services ( KELYA) (0.83 times tangible book), and greeting card name American Greetings ( AM) (0.83 tangible book). Perhaps the most interesting name, at least in terms of the company's business, is Omega Protein ( OME), which harvests Menhaden, an oily fish also known as "bunker" for use in Omega 3 vitamin supplements (which are promoted as reducing cholesterol and reducing the risk of heart disease), and fish meal, which is used for animal feed. Fish meal represents about two-thirds of company revenue. This company has been very volatile over the years, as storms and the Gulf oil spill have wreaked havoc on the company's facilities and ability to fish (the company has been compensated by insurance and oil-spill funds). There also have been limitations placed on the Menhaden harvests in some areas. There's also been some controversy recently as to whether fish oil supplements are actually effective in fighting heart disease. I've owned this name in the past a couple of times, and it has never been boring. HES data by YCharts
Happy hunting! At the time of publication, Heller had no positions in stocks mentioned. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.