Tuesday, September 15, 2009

10 Small Caps with High "Insider Ownership"

All 10 stocks mentioned below offer double digit rates of return on equity as well as assets. ROE is a corporations measurement of how profitable the company is with the money shareholders have invested. ROA shows how efficient management is at using its assets to generate earnings. All ten are trading at reasonable P/E ratios. All 10 mentioned have current ratios above 1.9, any thing above 1.5 shows that the company is capable at paying back short term debt. All 10 have a large inside ownership with modest to low debt and free cash flow, with each paying a dividend.

CompanySymbolPrice$ as of 9/14/09P/E
Ratio
ROE%ROA%Market CapFree
Cash Flow
Inside
Ownership
%
Current
Ratio
AAON, Inc.AAON20.3112.529%18%349 mil20 mil27%2.1
Advance AmericaAEA5.679.620%11%358 mil168 mil31%5.2
Alliance HoldingsAHGP20.1611.938%11%1.2 bil122 mil79%2.1
Alliance ResourceARLP3511.352%11%1.3 bil71 mil44%2.1
BuckleBKE28.5411.530%23%1.3 bil94 mil44%3.7
BreitBurn Energy BBEP10.95.9265%21%593 mil37 mil42%1.95
Cal-Maine FoodsCALM28.398.526%14%659 mil113 mil39%2.3
Lancaster ColonyLANC50.5615.923%16%1.4 bil64 mil35%2.9
Newmarket
Corp
NEU88.6514.227%12%1.3 bil42 mil23%2.8
Terra NitTNH10610128%63%1.9 bil375 mil75%5

* Deep Value Investor Seth Klarman of The Baupost Group holds 8.49 million shares of BreitBurn Energy which accounts for over 16% of the stock.

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