Bennett Environmental (BEL) is a Canadian-based company that specializes in decontaminating polluted soil. Its subsidiaries also make air-pollution control equipment.
Bennett has invested aggressively in the past and has used that wealth to expand its capacity. But the still-tiny firm has just a tiny amount of debt. Plus, Bennett's return on invested capital, which shows how efficiently a company can generate profits from investor capital (stock shares and bonds), rose to 32% in the last quarter from just 3% a year ago.
Dow Theory Forecasts lists Bennett as a "Best Buy" stock for its attractive valuation and potential to perform over the next 12 months. But the newsletter cautions that the stock may hold appeal "for more aggressive investors." Bennett trades at less than eight times the 2003 consensus earnings estimate of $1.01 per share.
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