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Find great stocks “in your own backyard”: do-it-yourself research techniques for uncovering today’s best small-cap equity opportunities!
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!
Stocks Under Rocks: How to Uncover Overlooked, Profitable Market Opportunities
Download the sample pages (includes Chapter 1 and Index)
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