Mike Cintolo
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Nicholas Vardy
Bull Market Alert

Quickel's trio: Small cap tech stocks


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by Stephen Quickel, editor US Investment Report

For risk-tolerant portfolios, we have uncovered three technology small caps that were hammered earlier in 2012 but have recovered impressively on the basis of strong earnings expectations.

EPAM Systems (EPAM) of Newtown, PA provides product development services to software vendors and technology companies worldwide. Earnings growth is estimated at 25% a year, which on a forward P/E of 12 gives EPAM a PEG of 0.48.

Yandex, NV (YNDX), headquartered in the Netherlands, is known as ‘the Google of Russia” because it operates an Internet search engine there and in other countries.

YNDX is slated to grow earnings by 29% a year, with a 53% upside pop during the coming 12 months, putting its PEG at a comfortable 0.79 despite its 23 P/E.

The third intriguing small cap tech is Measurement Specialties Inc. (MEAS) of Hampton, VA. Its specialty is sensors and sensor-based systems of all sorts for customers ranging from aerospace and medical companies to home appliance and industrial equipment manufacturers.

MEAS shares fell from 35 to 28 during the summer, but have rebounded to 34 and should reach the low 40s powered by 15% a year earnings growth and a potentially upgradeable P/E ratio of 13.4.

Learn more about this financial newsletter at Stephen Quickel, editor US Investment Report.

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