Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.
Small-cap Aastra Technologies is a low volume stock, so it may be subject to volatility. That said, it has taken in nearly $600-million in sales in the past year. The Ontario-based enterprise communications firm has more than 50 million installed lines around the world, a presence in more than 100 countries and a $229-million market cap.
Aastra draws strong interest from Validea’s Benjamin Graham-based model, thanks in part to its lack of any long-term debt and solid 2.28 current ratio. The Graham model also likes its 9.5 P/E (using 3-year avg. EPS) and 0.78 price/book ratios.
The Peter Lynch-based model likes its 0.48 yield-adjusted P/E-to-Growth ratio (it has a 3.9 per cent dividend yield).
The Lynch model also likes its 48.28 per cent net cash/price ratio. Mr. Lynch defines net cash as cash and marketable securities minus long term debt, and found that a net cash/price ratio above 30 per cent dramatically cut down on the risk of a security.
Click here for a complete breakdown of Validea’s investing guru report.