03/14/2017 7:00 am EST
We focus exclusively on micro-cap stocks; our latest "Company of the Month" is Precision Auto Care (OTCMKTS: PACI), which owns and franchises 215 and 63 international auto maintenance service centers.
The industry is filled with "mom and pop" companies; these family-owned business can often avoid the headaches of opening up shop by becoming a franchisee for a small investment.
Precision Auto Care has an impressive business model; with consistently increasing revenues and net income and impressive free cash flow. The trailing p/e is about 14.
PACI has a current ratio of about 2.4 and a debt-to-assets ratio of 0.14. After the stock's recent uplisting to OTCQX, accumulation of the shares has risen as investors realize the stock's value.
The company has been around for over 40 years and still hasthe fundamental foundation to grow rapidly and increase value for shareholders.
With its undervaluation and outstanding balance sheet, the stock provides investors with minimal risk and the potential for long-term reward.