5 Small-caps Worth a Closer Look

For patient investors willing to do their own research there are a lot of opportunities among small-caps

Chris Menon 24 January, 2013 | 2:10PM

For patient investors willing to do their own research there are a lot of opportunities among small-caps, especially those that receive little coverage or are out of favour.

The main reason to invest in small-caps is their potential to deliver phenomenal growth...but patience is required

Valuation

The tricky part is in trying to assess their value. When valuing established mid- or large-cap stocks two preferred metrics are free cash flow (FCF) and return on capital employed (ROCE). 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
EKF Diagnostics Holdings PLC56.00 GBX1.36
Frontier Smart Technologies Group Ltd  
PV Crystalox Solar PLC49.50 GBX1.43
Vectura Group PLC111.20 GBX3.93

About Author

Chris Menon  is a financial journalist writing for Morningstar.co.uk.

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