I keep sending posts to the boards, but they aren't showing up, even
after checking the message board hours later, so I'm trying a fourth
time.
Lifetime Brands, Inc. (Ticker: LCUT) is my latest "Not a Penny, but a
Smallcap" pick. They've been doing well, recently hit a bump, but I
believe this company, with a current capitalization under $400
million, will become a multi-billion dollar giant in the next ten
years. It currently has a share price of $22 and a trailing PE of
19. The first link below has an article that mentions 5 turnaround
candidates, but focuses in on LCUT in particular during the last half
of the article. One of the things that really grabbed me, is
insiders hold a whopping 45.88% of the stock! Sounds to me like they
have alot of confidence in the future of the Company as well as where
the value of the shares are headed.
While I do hold some true pennies (one of my favorites is PGPM), I try
to compose my ****tfolio mostly of companies that have low PE ratios
(price-to-earnings multiples, which for the uninitiated means, are
cheap because the stock price is only so much higher than actual
earnings), have already demonstrated earnings power and stability to
the point where you can buy and forget about them for 5 to 10 years.
These are the ones that have the potential to relentlessly grow and
make their early investors rich, like Walmart and Starbucks have. If
you'd invested in either of these in the early to mid 90's, you might
not have seen an overnight profit, but you'd be closer to being able
to retire now.
Article:
http://www.fool.com/investing/general/2007/03/20/5-more-turnaround-stocks.aspx
Quote:
http://finance.yahoo.com/q?s=lcut
Other smallcaps I hold and continue to like:
CRYP
UTI
SCSS
TIVO (the DVR makers. Not profitable right now, but I think they're a
great turn-around candidate)
A smallcap I'll consider buying if the price dips:
BWLD
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