Value Line's team of special situation analysts maintain a constant search for the very best small cap companies, sifting through hundreds of annual and interim reports, prospectuses, SEC filings, and press releases in their quest. Published monthly, each issue features two new recommendations, an aggressive stock from a high-growth industry and a conservative stock from a more stable industry that may pay dividends.
For the aggressive selection, the emphasis is on companies possessing the ability to generate exceptionally strong earnings growth during the coming three to five years, irrespective of economic conditions. Particular attention is paid to companies operating in high-growth, high-technology markets (the data communications, computer equipment, software, electronics, and health care industries are well represented). Using the same in-depth research, the conservative/income-oriented selection is made with a focus on an investment's income potential, income sustainability, and, in many cases, turnaround potential. The companies highlighted here can range from out of favor, but financially strong companies in any industry, to more conservative offerings in the utility industry.
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