28 Small-Cap Graham Enterprising Investor Stocks for October 2024
28 Small-Cap Graham Enterprising Investor Stocks for October 2024
These stocks are a great balance between growth, value and quality.
This is a Graham Enterprising Investor Criteria stock screen run for small-cap stocks. It is slightly modified from the classical definition of the enterprising investor - we are of course going smaller by filtering for small-caps, and we also look at a wider range for P/E and P/B ratios.
This screen was run in Stock Rover screener, which I absolutely love and do all my research with. You are welcome to take it for a spin for 2 weeks for free. If you buy a subscription, please be aware that this will generate a commission for me.
I ran this screen on Oct 25, 2024, and found 28 stocks that fit the Graham Enterprising Investor criteria. I list these stocks below along with a brief commentary.
This article continues after this brief note from me:
Hudson Technologies Doubles their Buyback. The Stock is Still Cheap.
Find out how much profit you can expect and why there is a catalyst to unlock this profit in 2025 or earlier.
Dear Subscriber,
Hudson Technologies HDSN 0.00%↑ is a small-cap portfolio stock that we recommended in August 2024 as undervalued and with significant upside potential. On Friday, Oct 25, 2024, the company announced an increase in the stock buyback from $10 million to $20 million. This coupled with the fact that the stock price is lower today than it was at the beginning of the year, we can see that the company is being opportunistic in repurchasing their shares when they are cheap. Exactly what you want to see in a well-run business.
Fortunately, Astute Investor’s Calculus Premium members were able to purchase this stock for cheap too. As the company affirms, the price is still low. In our recommendation, we estimate the fair value, and the profit target and outline the catalyst that will make the stock appreciate significantly in 2025 (or earlier).
Are you interested in getting into this profitable stock before it begins its inevitable ascent? You have 2 options:
You can access the report by becoming a Premium member (which will give you access to all the stock reports we have published so far, and will publish in the future), or,
You can also purchase just this stock report here without buying the Premium membership.
Premium membership also tells you the optimum percent of your portfolio to allocate to this stock. If you purchase just the individual stock report, this information is not included.
Warm Regards,
Shailesh Kumar
Astute Investor’s Calculus
PS. You may have heard, that the Founder’s Club membership is now a single fee for a lifetime of access to the benefits of the Premium membership. It additionally gives you access to all new model portfolios I will add in the future. I have 3 new portfolios in works (income generation, dividend growth and a value/momentum factor hedged etf portfolio). As is the case with our flagship value portfolio, every portfolio I create is backed by significant academic research and pedigree.
PPS. Our membership is designed for investors with $100K in assets or more. If you have less in assets, you can still purchase the membership but it may not be worth to you after the fee.
PPPS. Your membership fee may be a tax-deductible investment expense in the US and perhaps some other countries. Check with your tax advisor.
Please be aware that stock ownership comes with a risk and I am not your financial advisor and this is not a financial advice.
Questions? Email me by just replying to this newsletter.
Let’s carry on with the article now.
Please click the table above to expand and see all the columns. Also please note that the table is 2-page long, you can click the pagination arrows at the top to move between the pages. You can always download data by clicking “Get the Data” at the bottom of the table once it is expanded.
Okay, so there are quite a few stocks to list. As usual, I will do a quick scan of their fundamentals and list my first impressions, including whether this stock merits further consideration. If a stock does require further review, I will do a deep dive and post the report for the Premium members.
Acme United ACU 0.00%↑ : Acme United makes school supplies such as first aid kits, scissors, pencil sharpeners, etc. They sell through distributors and wholesalers to retail and ecommerce including office supply and hardware stores. They own the Westcott brand. They have some challenges with Chinese tariffs and are working to reposition their supply chain to other locations. I do not see much issues with their financials and industry position so definitely worth a second look. Please note that the stock is thinly traded and you will need to take care to buy or sell so you do not lose due to slippage.
Andersons ANDE 0.00%↑ : Andersons is a agricultural distributor. They move food, feed and fuel and provide storage and logistics services. The stock price is slightly down over the last year but the fundamentals are solid. Worth further review
Aside: Given the nature of this screen, I expect a vast majority of the shortlisted stocks may need a deeper dive. This is a very solid screen.
Benchmark Electronics BHE 0.00%↑ : BHE provides electronics manufacturing service to various industries. The stock is up 96% in the last year and it shows in its price to earnings multiple which is a little high at around 23. The company margins are low and I have no further interest in the stock.
Cable One CABO 0.00%↑ : Cable One is a telecommunications company providing broadband, voice and video services to residential and business customers. The company fundamentals look cheap and the stock is down 41% in the last year as it has seen declining revenue. At this point, it appears to be cheap enough to warrant a second look. It also pays a 3.4% dividend yield.
Amcon Distributing DIT 0.00%↑ : Amcon Distributing Co is engaged in the wholesale and retail distribution of consumer products such as cigarettes, tobacco, confectionery, health food, and others. The stock is down 25% for the last year. I presume its categories are on the decline. This is an extremely thinly traded stock with sometimes less than 100 shares traded per day. Proceed with caution and exercise due process if you choose to transact. I will not add to the Premium portfolio but my oh my, isn’t this an interesting stock to dig into. These are the types of stocks that can exhibit tremendous mispricing. I will review.
Ennis EBF 0.00%↑ : Ennis Inc. is a manufacturer and supplier of print products for the wholesale trade. The company's products include advertising specialties, business forms and supplies, commercial printing, eCommerce solutions, envelopes, labels and tags, and folders and packaging. The stock looks like a good value and pays a 4.9% dividend. Will review further.
Ethan Allen Interiors ETD 0.00%↑ : With the real estate market as it is, you can expect a home furnishings retailer to suffer. The fundamentals are solid and the economic conditions going forward should be more amenable to growth. It has very little debt and a 5.3% yielding dividend which it has grown over 1, 3 and 5 year period. Another one to add to the watch list.
Greenbrier Companies GBX 0.00%↑ : Greenbrier designs and manufactures rail cars. Cheaper than Trinity, which is its main competitor. I have owned rail car makers in the past and understand the market. Will review further.
Haverty Furniture Cos HVT 0.00%↑ : 5.4% dividend yield, 10 P/E, 1 PEG and 1.2 P/B. Net margins are low but so is debt. I think I want to look at it more.
Ingles Markets IMKTA 0.00%↑ : Ingles Markets operates a supermarket chain. It is a perennial value stock, currently selling at 80% of the book value. As a retailers, its margins are thin and the sales and EPS have declined over the past year. I will pass mainly because of a lack of moat of any kind.
Koppers Hldgs KOP 0.00%↑ : Koppers Holdings, through its subsidiaries, manufactures and sells wood products, wood treatment chemicals, and carbon compounds used in markets such as railroad, aluminum and steel, agriculture, utilities, and residential lumber. It has low P/E, a PEG ratio of 0.4 which is very undervalued. However, I will pass due to its debt levels which are high at 2.1 times equity.
Dorian LPG LPG 0.00%↑ : P/E ratio of 4 and PEG ratio of 0.5. It pays 12.9% dividend yield but the payout ratio is a reasonable 52.7%. It has low debt. It is a LPG shipping company and if you know anything about shipping, you would know that it is a very cyclical industry. Compensation to own this stock is solid, but do ample research before you make a move. We already own a shipping company stock and have no further desire to add more.
LTC Properties LTC 0.00%↑ : It is a healthcare REIT that pays a monthly dividend. I am not looking to buy a REIT so I will padd.
La-Z-Boy LZB 0.00%↑ : We all know this furniture company. The stock has done well this year but the valuation is fair and possibly not much appreciation potential remains.
MGP Ingredients MGPI 0.00%↑ : MGP Ingredients Inc is a producer and supplier of premium distilled spirits and specialty wheat protein and starch food ingredients. The stock is down 40% for the year and the PEG ratio is now 0.9. Margins are high and the debt is low. First scan it looks very attractive. I will add to the watch list.
Miller Industries MLR 0.00%↑ : Miller Industries Inc is engaged in the manufacturing of vehicle towing and recovery equipment. The stock is up 83% in the last year, and it is still cheap at 10.6 P/E and 0.7 forward PEG. I am VERY interested.
Myers Indus MYE 0.00%↑ : Myers Industries Inc designs, manufactures, and markets a variety of plastic, metal, and rubber products, including a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Low margins and higher debt than others in the list. I will pass.
National Healthcare NHC 0.00%↑ : National Healthcare Corp Provides long-term care facilities. P/E ratio at 20, I will pass as there is no dearth of other stocks to spend time on this today.
One Liberty Props OLP 0.00%↑ : One Liberty Properties is a REIT. It acquires, owns, and manages a geographically diversified portfolio of industrial, retail, restaurant, health and fitness, and theater properties. I am not looking at REITs in our value portfolio.
Oppenheimer Hldgs OPY 0.00%↑ : The company is involved in retail securities brokerage, investment banking (both corporate and public finance), institutional sales and trading, market-making, research, trust services, and investment advisory and asset management services. I generally avoid banks and other financials.
Pangaea Logistics Solns PANL 0.00%↑ : Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. I am not looking anymore shipping stocks so I will pass. The fundamentals are fair, not particularly attractive compared to others in the sector.
Preformed Line Products PLPC 0.00%↑ : Preformed Line Products Co is a designer and manufacturer of products and systems for constructing and maintaining overhead and underground networks for energy, telecommunication, cable operators, data communication, and other industries. Looks fairly priced.
Perdoceo Education PRDO 0.00%↑ : Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segment include the American InterContinental University, and Colorado Technical University. High margins, no debt. Could be a good company, I am not sure of the state of the for-profit education industry in the US today. I will pass for now.
Shoe Carnival SCVL 0.00%↑ : Footwear retailer trading at 12.4 P/E. Valuations look good, will review it further.
SITE Centers SITC 0.00%↑ : SITE Centers is a shopping center REIT. I do not need a REIT in our value portfolio.
SpartanNash SPTN 0.00%↑ : It is a grocery product distributor and also operates its own retail stores. It also supplies US military. At 0.5% net margins, there is very little room for error. I will pass.
Utah Medical Products UTMD 0.00%↑ : It is a medical products distributor. The stock is down 21% for the year. The valuation is unexciting and I will pass.
Universal UVV 0.00%↑ : I have owned UVV in the past. It is a tobacco processor and is a dividend aristocrat with 6.5% dividend yield. The stock is valued for very little growth and you can buy it for the dividend but as a value investment I am not much interested in this today.
Actually, all these are solid companies, this is the nature of this screen. So we need to be a little more picky to choose the stocks we want to review further. We have some very good possibilities and I will post reviews in the paid member area.