10 Value Microcap Stocks with High Price Momentum

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On a monthly basis I conduct a close replication of AAII's (American Association of Individual Investors) Shadow Stock screen. The goal is to find small, undervalued stocks with high price momentum over the past 52 weeks.

The screen and date below is courtesy of Stockscreen123. I use the following screen criteria to identify high momentum value stocks:

• No over-the-counter stocks
• No financial stocks
• Market cap > $20 Million and < $200 million
• Previous EBITDA quarter and trailing twelve months are positive
• Share price > $1
• Price/book < .80
• Price/sales < 1.2
• Top 10 stocks are selected based on highest 52 week returns
• Minimum average daily volume > 5k shares

The results for this month are below:

Ticker	Name	Trend	Rank	Mkt Cap	Pr2SalesTTM	Pr2 Book Q	EBITDATTM	EBITDA Q	Pr52W % Chg
ABL	American Biltrite Inc.	Here	99.25	36.13	0.18	0.72	7.51	1.01	229.15
GFN	General Finance Corporation	Here	96.96	69.34	0.41	0.62	25.67	9.2	122.63
FFHL	Fuwei Films (Holdings) Co., L	Here	94.07	27.95	0.36	0.33	14.83	7.12	86.09
SVLF	Silverleaf Resorts, Inc.	Here	91.96	93.05	0.41	0.45	51.6	9.87	70.63
COBR	Cobra Electronics Corporation	Here	84.92	24.92	0.23	0.71	5.74	2.84	45.98
JAX	J. Alexander's Corporation	Here	83.04	35.91	0.24	0.74	8.23	2.59	41.84
ESCA	Escalade, Inc.	Here	75.08	67.24	0.56	0.77	12.52	1.86	30.27
WCAA	WCA Waste Corporation	Here	71.32	141.96	0.62	0.76	53.13	12.74	25.52
GRRF	China GrenTech Corporation Li	Here	63.83	71.51	0.27	0.3	23.84	20.28	17.9
BLD	Baldwin Technology Co.	Here	62.11	27.05	0.17	0.49	2.39	0.27	16.11

March's list returned an average of 2.23% (excluding dividends, commissions, and taxes).

Looking at this month's list Fuwei Films (FFHL) is worthy of further attention. While its 52 week momentum is high, it recently received a delisting notice from Nasdaq.  FFHL's intermediate momentum is a stark contrast to the 52 week momentum: Quarterly returns are -52.04% and 1 month returns -48.14%.  For those looking at price momentum and stability, this information should give investors pause.

Silverleaf Resorts (SVLF) also has high price momentum and solid fundamentals. However, in February SVLF's board agreed to sell SVLF to Cerberus Capital Management for $2.50/share. Thus, any position in SVLF at this point will only serve to place you in the middle of an acquisition with little upside (unless shareholders are successful in fighting the sale of the company).

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