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stock investing concepts - investing in two small cap stocks



Stock Management Value Overall Rating-Date Of Article stock investing concepts
AAON 8 out of 10 8 out of 10 8 our of 10
VSEC 8 out of 10 8 out of 10 8 out of 10

5/15/2009
The stock investing concepts that many forget about are what I like to call the 3 m’s. Money, Management, and Market advantage i.e. the uniqueness of the products or services a company can provide in the market. These m’s are important to investors to think about before they just go ahead and buy a company. Now when I talk about these three terms I don’t mean find the company that has the most money, I mean find the companies with the least amount of debt. Now, because I am a nice guy, I went out and found some stocks for people that seem like they have the 3 m’s so to speak already. They seem to have good management, market advantages, and a lot of money for their “SIZE” i.e. meaning that they don’t have a lot of debt to worry about like many companies these days do these days. The first small cap company which are my favorite type of companies by he way; the first one I want to talk about is Aaon inc AAON symbol. The first thing I like about this company is that they have over three times as many assets as debt, with a price to earnings of only about 12 as of the date of this article. This means that for every share of them that you buy; you are not buying a lot of debt to go along with it.

AAON is providing a great service and product that people will need and want for years to come i.e. Air Conditioning and Heating. The cool thing about this stock is that it boils down the basics of the fact that people like to be kept at the right temperature for survival. One of the stock investing concepts that people should think about is how needed are the products or services that someone is selling? The next stock I think that we should look at in our current market is VSEC or VSE corp. While VSE corp. has a little more debt than I like to see in a company, they seem to have in my opinion good returns on their investments, at least as of the date this was written. They also have value in the sense that the products and services that they provide are hard for most business to provide in the marketplace. The harder a product or service is to give to people, the better off the companies that you invest in will be if they provide this product or service. Also both the companies presented in this article are not only small cap stocks, but also they pay a dividend to their shareholders which to me show a major advantage. Dividends should not only be looked at as extra money for you to invest but also it shows strength in a company. If a company has enough money coming in to pay cash to you, then you know that in most cases they aren’t doing too selling their products or services especially if they are small caps. A large portion of VSE’s business is engineering related which is also a very complicated field that requires the right type of employee to make it work - a key stock investing concept. Speaking of employee’s both of these companies also have a substantial insider holding, which shows that the management cares more about what happens to the company since their money is at stake too. Both of these companies I think as of the date of this article encompass the essence of sound and reasonable risk investing, the real question is what do you think about these companies, do they encompass practical stock investing and a good stock investing concept?
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