'Have I got a great stock for you!'
Here's a story/sales pitch from The Motley Fool, by Todd Wenning, which recommends "Brink's Home Security" as a good investment. It a lengthy pitch, so I worked up a handy summary for you: --Fewer small cap stocks are being followed by Wall Street investors and that's generally bad for the companies, 'cause it makes it harder for those companies to get cash. --Some small cap holdings are very good--or will be in the future if they are: small, "underfollowed" [that's Wall Street for not a lot of analysts are paying attention to the stock] , financially strong, well managed, and, dominant in their market niche. --Motley Fool co-advisors Seth Jayson and Andy Cross use this very criteria to pick out stocks for Motley Fool "Hidden Gems" subscribers. From the story:
One stock the team feels fits the profile is Brink's Home Security, provider of home security systems to more than 1.3 million customers. The recent spin-off from The Brink's Co. only has eight analysts following it, but has a strong balance sheet, is free-cash-flow positive, and has a high level of recurring revenue.I would agree that the company meets the five criteria, but jeez, don't Seth and Andy know the name of the stock they're recommending for Pete's sake? As my loyal readers know, it's not Brink's Home Security anymore, it's Broadview Security... stock symbol CFL... Want details on the name change and how it'll affect the company? Read all about it right here. Want to know what an analyst who's been following Broadview/Brink's for 20 years thinks? Then click here. For the longer version of Todd's story, click here.