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11 Small Cap Stocks Trading Near Book Value

By Marc Norton on September 22, 2009 | More Posts By Marc Norton | Author's Website

Benjamin Graham considered the father of security analysis and value investing used a set of tools to pick stocks. These tools much like a carpenter will use to build or fix a house, Graham used to find undervalued stocks. His tools were low P/E ratios, stocks that traded near book value, stocks that made money over the past 5 years, and stocks that showed consistency of paying a dividend. Here is a list of 11 small cap companies trading near their book value. Most of these companies have several characteristics that a Value Investor such as Graham would be looking for. All trade at a low P/E ratio with earnings growth over the last five years. All but one pay a dividend. Six of these issues have paid out a dividend for 10 straight years. .

American Physicians Capital- founded in 1975 through its subsidiaries, is a regional provider of medical professional liability insurance focused primarily in the Midwest, with Michigan, Illinois, Ohio, Kentucky, and New Mexico as our core states. Based on direct written premiums as reported by A.M. Best Company, we are among the top writers of professional liability in Michigan, New Mexico and Illinois. We rank 19th nationally among professional liability insurers, with approximately 9,300 policies in-force.

Apogee Enterprises- founded in 1949 and is based in Minneapolis, Minnesota transforms plain glass to create distinctive solutions for architects, building owners, contractors, picture framers and others. Our glass and aluminum window, storefront and curtainwall systems make commercial buildings look great, reduce energy consumption and protect against hurricanes and blasts. Apogee’s glass also reduces fading and reflection for picture framing customers.

Chase Corporation- founded in 1946 and is headquartered in Bridgewater, Massachusetts engages in the manufacture of specialty tapes, laminates, sealants, and coatings, as well as in the provision of contract assembly services for the electronics industry worldwide.

Espey Mfg. & Electronics Corp.- founded in 1928 and is based in Saratoga Springs, New York engages in the development, design, production, and sale of electronic power supplies, various transformers and iron-core components, and electronic system components primarily in the United States.

Friedman Industries- founded in 1965 and is based in Houston, Texas. Together with its subsidiaries, engages in steel processing, pipe manufacturing and processing, and steel and pipe distribution in the United States.

Espey Manufacturing & Electronics- founded in 1941 is a leading developer, manufacturer and marketer of products for consumer, industrial and automotive, agricultural, sports fields and fluids purification markets. Oil-Dri — Creating Value From Sorbent Minerals

Preformed Line Products Company- founded in 1947 and is headquartered in Mayfield Village, Ohio. Together with its subsidiaries, designs and manufactures products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, and information industries worldwide.

Patterson-UTI Energy- founded in 1978 provides onshore contract drilling services to exploration and production companies in North America. The Company has approximately 350 marketable land-based drilling rigs that operate primarily in oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, Colorado, Arizona, Utah, Wyoming, Montana, North Dakota, South Dakota, Pennsylvania, West Virginia and western Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of pressure pumping services and drilling and completion fluid services.

Servotronics- founded in 1959 engages in the design, development, and manufacture of high quality components, systems and sub-systems for use wherever precise control, reliability and cost containment are primary requirements.

The Stephan Co.- founded in 1897 and is headquartered in Fort Lauderdale, Florida together with its subsidiaries, engages in the manufacture, sale, and distribution of hair care and personal care products.

Versar- founded in 1969 and based in Springfield, Virginia provides various professional services to the government and private sector with solutions for infrastructure, facilities management, construction, environmental quality, defense, and homeland security needs in the United States and internationally.

Ticker Price as of
9/18/2009
Book Value Price Book Ratio Free Cash Flow P/E Current Ratio Mkt Cap Total Debt Earnings Growth Past 5 yrs Yield % Industry
ACAP 29.54 22.37 1.37 40.9m 8.54 4.92 313.4m 25.9m 24.3 1.1 Property & Casualty
APOG 15.94 11.51 1.35 31.2m 8.94 1.63 444.8m 8.4m 31.4 2.2 General Building Material
CCF 11.6 7.86 1.46 12m 13.57 3.04 99.1m 0 7.8 3.1 Industrial Equipment & Components
ESP 18.1 13.44 1.37 4.7m 14.23 13.3 38.2m 0 53 5.1 Diversified Electronics
FRD 6.15 8,2 .75 3.8m 4.38 9.48 41.8m 54,030 16.27 0.6 Steel & Iron
ODC 14.31 12.93 1.14 5m 11.23 2.92 101.1m 21.5m 12.71 4 Specialty Chemicals
PLPC 39.50 28.19 1.40 5m 13.48 3.07 206.8m 7.8m 11.4 2 Heavy Construction
PTEN 15.04 13.81 1.11 168.6m 12.45 2.05 2.3b 0 11.8 1.3 Oil & Gas Drilling & Exploration
SVT 7.20 9.63 .78 2m 6.32 4.92 13.9m 4.1m 38.15 2 Industrial Electrical Equipment
TSC 2.42 5.51 .46 2.1m 13.97 6.61 10.3m 426,000 22.13 3.3 Personal Products
VSR 4.04 3.06 1.21 5.0m 11.67 2.73 36.8m 0 23.56 0 Technical Services

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1 Comment :
Comment by IntrinsicEdge Subscribed to comments via email
2009-09-22 22:03:09

Check out TSC’s balance sheet; it has $1.93 cash/share.

 
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