Forbes200 Best Small Companies Fair Value

2008 Forbes 200 Best Small Companies *intrinsic value calculated automatically with spreadsheet. Detailed calculation required later on. DCF and Graham Fair Values were at time of writing

No. Ticker Company Name

Description

4

QSII

Quality Systems

Develops information systems to automate medical practices

5

PETS

PetMed Express

Markets prescription and nonprescription pet medications and products

11 12 13 14 15 20 22 25 37 41 42

Markets UGG, Teva, TSUBO, and Simple brands of shoes Develops circuits and modules for voice and HITT Hittite Microwave data transfer systems K-Tron Designs and markets mechanical sorting and KTII International assembly equipment Provides explosive welding and BOOM Dynamic Materials manufacturing services Manufactures commercial cooking MIDD Middleby equipment owns and operates universities and online STRA Strayer Education courses j2 Global provides value added messaging and JCOM Communications communication services Comtech develops advanced communications CMTL Telecommuncation solutions s provides weight loss management and NTRI Nutirsystem fitness programs operates online consumer banking and RATE Bankrate finance network DECK Deckers Outdoor

NILE

Blue Nile

Remarks

Price at Time of Current Price Writing

DCF*

Graham Value

Initial

$48.03

$38.00

$43.00

Y

$17.30

$15.49

$18.00

$22.00

Y

good numbers all around

$60.70

$63.82

$70.00

$106.00

Y

excellent FCF, margins, returns

$27.37

$32.37

$26.00

$47.00

Y

$77.69

$67.69

$110.00

$123.00

Y

$15.47

$11.65

$16.00

$35.00

Y

excellent FCF, margins, returns

$35.59

excellent FCF, margins, returns

excellent FCF, consistent margins, good returns excellent FCF, returns, margins fluctuate excellent FCF, returns, margins, slightly high debt

$31.47

$38.95

$44.00

$65.00

Y

excellent FCF, margins, returns

$237.70

$164.58

$118.00

$142.00

Y

excellent FCF, margins, returns

$18.90

$24.37

$24.00

$33.00

Y

Strong FCF, good CROIC, increasing margins

$46.81

$27.51

$41.00

$52.00

Y

excellent numbers and margins

$13.38

$14.86

$30.00

$50.00

Y

excellent numbers and margins

$34.71

$25.97

$27.00

$37.00

Y

retails diamonds and fine jewelry online

good solid consistent numbers

$27.84

$36.62

$32.00

$32.00

Y

consistent, increasing margins, solid numbers excellent FCF and CROIC, bad shareholder equity, impressive margins excellent margins, good FCF but low CROIC

$25.15

$21.36

$20.00

$47.90

Y

$65.30

$52.47

$30.00

$87.00

Y

45

RAVN Raven Industries

makes industrial, agricultural, construction and aerospace products

46

CHTT Chattem

markets OTC health care and consumer products

47

JOSB

$26.15

$36.87

$44.00

$58.00

Y

50

ANSS Ansys

develops engineering simulation software

excellent numbers and margins

$29.92

$27.05

$17.00

$22.00

Y

56

DIOD Diodes

manufactures and distributes semiconductors

impressive since 2001 but CROIC is too low. 70% undervalued though. Worth taking a look

$4.39

$12.22

$15.00

$20.00

Y

FactSet Research Systems Meridian VIVO Bioscience

provides online financial information to investment community markets diagnostic test kits and specialty biological products

excellent numbers and consistent margins excellent margins, good CROIC but low FCF

$38.36

$48.84

$44.00

$70.00

Y

$24.29

$17.31

$12.00

$25.00

Y

$33.20

$32.43

$64.00

$85.00

Y

58 68 71

FDS

PRAA

Jos. A. Bank Clothiers

retails men's clothing and apparel

Portfolio Recovery collects portfolios of defaulted consumer Associates debt

strong consistent numbers but very slight decreasing margins

78

develops hermatology controls and biotechnology products

excellent numbers, growth and margins

$62.36

$54.96

$40.00

$70.00

Y

Computer Programs & Systems

designs hospital IT support systems

excellent numbers but declining margins past 2 years

$25.68

$34.83

$20.00

$38.00

Y

Rocky Mountain Chocolate Factory

manufactures chocolate and other confectionery products

low FCF but good returns over 10 and 5 yrs

$5.52

$6.10

$10.00

$17.00

Y

TECH Techne

97

CPSI

102

RMCF

103

CRED Credo Petroleum

explores for oil & gas

rare profitable oil & gas company. Great stable margins and returns. Low CROIC

$8.97

$7.51

$6.60

$15.00

Y

106

DNEX Dionex

makes analytical instruments for chemicals industry

fairly stable margins, excellent CROIC and good returns. Average FCF growth. Past 5 yr growth low

$45.74

$52.32

$37.00

$55.00

Y

117

NEOG Neogen

develops products for food and animal safety

consistent increasing margins, average returns

$23.77

$22.04

$10.00

$27.00

Y

123

GPRO Gen-Probe

develops and markets clinical diagnostic products

Average numbers but consistent returns and growth in all areas

$40.37

$47.52

$39.00

$41.00

Y

$18.97

$17.73

$19.00

$40.00

Y

$39.44

$28.45

$30.00

$60.00

Y

$13.91

$15.69

$12.00

$23.00

Y

$4.54

$5.02

$13.00

$19.00

Y

$25.30

$26.18

$45.00

$73.00

Y

$13.91

$14.56

$24.00

$25.00

Y

137 138 141 147 148 152 155

fairly stable margins, excellent CROIC, FCF and returns. fairly stable margins, excellent makes replacement parts for jet engines HEI Heico CROIC, FCF and returns. provides nationwide transportation services Excellent margins, stability, history HTLD Heartland Express to major shippers and numbers excellent numbers and stable makes stolen vehicle tracking and recovery LOJN LoJack margins but operating and net systems should be higher develops instrumentation and thermal fluid consistent margins but average CIR Circor International control products numbers no FCF growth but other numbers makes compact disc production and RIMG Rimage and margins are good and duplication equipment consistent JKHY

Jack Henry & Associates

HAE Haemonetics

provides data processing systems for banks and finance companies

$55.02

$51.03

$20.00

$18.00

Y

average numbers but consistent multiyear performance and increasing operating and net margins

$14.82

$18.56

$17.00

$29.00

Y

157 HCSG

Healthcare Services provides housekeeping and laundry services average yet very consistent Group to nursing homes numbers and increasing margins

$15.75

$15.93

$8.00

$13.00

Y

164

Interactive Data

$22.88

$26.30

$20.00

$40.00

Y

$18.68

$21.61

$24.00

$32.00

Y

$9.80

$6.80

$13.00

$37.00

Y

$12.98

$13.68

$7.00

$12.00

Y

$8.37

$7.15

$32.00

$34.00

Y

156

UEIC

IDC

Universal Electronics

makes automated blood processing systems fairly consistent margins makes universal remote controls for home devices

provides financials market data and related analytics

no FCF growth but other numbers and margins are good good consistent numbers and increasing margins good numbers and fairly consistent numbers

174

SHOO Steve Madden

176

Monarch Casino & MCRI operates atlantis casino resort in nevada Resort

177

QSFT Quest Software

develops management software

MOV Movado Group

designs and retails brand name watches and excellent numbers and margins jewelry

179

designs and sells footwear

excellent numbers and FCF growth