Hey Nineteen

In Friday's column, I reviewed the results of a stock screen that focused on profitable small-cap value companies holding healthy amounts of cash, which I ran last January. Although there were just a handful of companies meeting the criteria, the average returns were decent, beating the relevant benchmarks handily. But with just six names making the cut, the true effectiveness of this screen is inconclusive, at least for 2011. That being said, it is worthy of another test for 2012.

As a recap, the screen is designed to identify smaller companies that are trading at reasonable price-to-earnings (PE) multiples and have great liquidity, ample amounts of cash and low levels of price-to-book ratios. Here are the specific screening criteria, which are unaltered from last year's screen:...335 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.