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These Small Cap Companies Are Way Undervalued

Here is the current list of Small Cap companies that are Way Undervalued as of April 27th, 2014.

The list includes 17 Small Cap stocks.  After analyzing nearly 2,000 Small Cap companies, these 17 stocks made the cut as Way Undervalued.

See: April Large Cap & Mid Cap Way Undervalued stocks

These stocks were picked using the Way Undervalued analysis method to identify deep value stocks and filtered for market caps between $300 Million to $2 Billion.  I will post Micro Cap Way Undervalued companies separately to make the list more manageable.  Do your own due diligence before plunking real money on these.

Here they are:


P/E Ratio Used

Closing Price on 4/25/14

2014 Estimated Value

2015 Estimated Value

2014 Value Discount

2015 Value Discount

Market Cap

Company Name

GLF 22.5 $44.48 $89.78 $105.98 102% 138% 1,184 GulfMark Offshore
PRFT 27.4 $22.96 $35.87 $40.80 103% 131% 601 Perficient
ELX 24.2 $7.27 $16.18 $20.04 123% 176% 588 Emulex Corporation
CG 25.0 $13.50 $82.50 $84.75 138% 145% 1,742 The Carlyle Group L.P.
WWWW 29.0 $9.00 $72.50 $86.13 139% 184% 1,511 Group
CSIQ 19.9 $30.15 $73.05 $94.68 142% 214% 1,522 Canadian Solar
MGI 23.9 $17.69 $34.66 $38.96 157% 189% 783 Moneygram International
MEMP 29.0 $34.64 $60.03 $59.45 161% 159% 1,406 Memorial Production Partners LP
TOWR 25.8 $27.12 $73.65 $82.66 172% 205% 556 Tower International
GCA 21.5 $6.50 $18.04 $19.55 178% 201% 427 Global Cash Access Holdings
WILN 22.4 $30.30 $8.74 $9.18 190% 205% 361 Wi-Lan Inc
UEPS 18.9 $3.01 $26.43 $29.26 194% 225% 407 Net 1 UEPS Technologies
OCIR 29.0 $21.99 $66.99 $76.27 205% 247% 439 OCI Resources LP
PBF 27.7 $28.92 $91.25 $97.88 216% 238% 1,581 PBF Energy
BCOR 24.6 $18.52 $58.70 $67.54 217% 265% 781 Blucora
VTG 18.7 $1.76 $5.80 $6.36 229% 261% 537 Vantage Drilling Company
BRSS 26.9 $15.77 $59.72 $66.17 279% 320% 335 Global Brass and Copper Holdings

WayUndervalued Small Cap stocks

You'll notice Jones Energy (JONE) is no longer Way Undervalued.  It dropped below the 100% cutoff during the past month since it's stock price is up 6% and more importantly, average EPS expectations for JONE have dropped nearly 20%.

On April 17th, I nearly bought shares of UEPS when it's intraday share price dropped about 25% to around $7 per share after a news headline was released about a South Africa court ruling regarding Net 1 UEPS.  Their intraday Value Discount was up to about 275% (maybe I should call that Way Way Undervalued).  Unfortunately for me, I couldn't pull the trigger in time to buy the stock.  The share price traded near $7 only for a very short period during the day.  Later that day, the stock recovered back to around $9 per share and I missed my chance.  Maybe next time.  If you look at a chart for UEPS, it won't even show this temporary price drop.  You'll have to look at a historical table with price highs & lows for it to show up.

Another stock missing from the list is SUPERVALU Inc (SVU).  SVU earnings estimates are about the same today as they were a month ago.  The stock is up 9% since last month.  However, their current trailing P/E ratio is much lower than their historical average.  This technically takes them off the list, but I'm torn about putting them in the list since I believe their stock could go up as people realize the company trades at a low P/E ratio (currently around 10).  But, nobody cares what I believe and this site is about sticking to the numbers - not emotion.  So, SVU is off the official list.  Should this situation repeat itself for top-performing stocks, I'll need to find a numerical way to quantify it in order to change the rules around here.  Until then, sorry SVU.

Also missing from the list this month is VVI.  It missed the 100% cutoff by a single digit percentage.  Another missing from the list is WNS since it's an ADR.  ADR's will be removed from future Way Undervalued stock picks.

New additions to this month's Small Cap picks are CG, GLF, MGI, PRFT.  Nothing major to tell here, they just crossed the cutoff line since last month.

I'll monitor these and post updates for any changes to the list.

Disclosure: I own BCOR, JONE & BRSS.  I also have plans to buy PBF within the next 48 hours.