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Stocks Under Rocks: How to Uncover Overlooked, Profitable Market Opportunities

By Peter Ricchiuti

Published by FT Press

Published Date: Dec 4, 2013

Description

Find great stocks "in your own backyard": master do-it-yourself research techniques for uncovering today’s best small-cap equity opportunities! Peter Ricchiuti reveals the secrets of Tulane University’s Burkenroads Reports program, where he and 200+ business students work together to uncover less-followed, frequently misunderstood, and seemingly un-sexy companies that often produce superior investment returns. Their research on these "orphan stocks" powers The Burkenroad Mutual Fund, which has outperformed 99% of all stock funds over the past eleven years. You’ve seen them on CNBC, CNN, and the Nightly Business report… read about them in the Wall Street Journal and the New York Times. Now, Ricchiuti shows how they do it – and how some well-informed stock sleuthing can pay off big for you, too. You’ll discover why "underfollowed" small-cap equities now offer exceptional investment opportunities, and how to leverage the surprising hidden advantages available to individual investors – including the ability to trade in stocks that don’t generate the volume and liquidity institutional investors require. Fact is, there’s very little innovative equity research on Wall Street anymore. That gives you a powerful advantage – and Ricchiuti gives you the principles and simple techniques you need to take advantage of it. Stocks Under Rocks will be the next classic for every personal investor who wants to find great investments and have fun doing it!

Table of Contents

Introduction    1

The Burkenroad Reports Course    3

The Mattress Investor    5

The Handoff    7

The Trader    8

Chapter 1  Hit ’Em Where They Ain’t    13

Small Caps    16

Stock Catalysts    18

Share Buybacks    18

Growth Brings Attention    19

The Liquidity Discount    19

Skin in the Game    20

Quicker Thinking    20

Better Balance Sheets    21

Buyout Potential    21

Chapter 2  Despicable Me    23

How Much Would You Give Me for This?    23

Bugs, Inc    26

Gas, Beer, Ice, Slim Jims, and a Lottery Ticket, Please    28

We Want to Pump You Up    29

Just Dying to Meet You    30

Chapter 3  Investing in the Big Picture    33

CARBO Ceramics    34

Team, Inc    38

Chapter 4  Buybacks on the Bayou    41

Honey, We Shrunk the Float    44

Insider Prophets    46

Chapter 5  Contrarian Investing    49

Sharps Compliance    52

Chapter 6  The Beauty of Repeat Business    55

Just Add Water    55

Cyberonics    59

Chapter 7  Niche Opportunities: Seeing What Others Missed    63

Evolution Petroleum    65

Amerisafe    66

Chapter 8  Lessons Learned    69

Piccadilly Cafeterias    71

Chapter 9  The Best Company You’ve Never Heard Of    75

Price-to-Book Value    77

Frugal Is Fantastic    79

Other Great Penny-Pinchers    80

Chapter 10  More Than Meets the Eye    83

Sanderson Farms    83

Cal-Maine    86

Chapter 11  Company Buyouts: For What it’s Worth    89

More Likely to Be Bought Out    91

Being a Public Company: Good? Bad? or Ugly?    95

The Urge to Merge    96

Chapter 12  Market Mythbusters    99

Chapter 13  Celebrities and Prognosticators    105

Great Experiences    105

Jim Cramer    106

Warren Buffett    107

Stock-Picking: A Lost Art    109

Chapter 14  Crunching Numbers    111

P/E Ratio    111

Thoughts on P/E    114

Finding the Catalyst    115

PEG Ratio    115

Enterprise Value/EBITDA    117

A Little Story About Enterprise Value    119

The Lower, the Better    120

Chapter 15  Kicking Tires    121

Chapter 16  Taking Names    127

Low-Level Police Work    128

Model Building    129

Chapter 17  Plant and See    131

Ten Good Ideas    131

Let’s Create an Arena for Ideas    134

Chapter 18  When You’re Lost, Everything’s a Sign    137

Index    141

 

 

Purchase Info

ISBN-10: 0-13-339909-5

ISBN-13: 978-0-13-339909-7

Format: Book

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