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Validea Motley Fool Strategy Daily Upgrade Report - 5/15/2019


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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool . This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.

FIRST CAPITAL, INC. ( FCAP ) is a small-cap growth stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool changed from 65% to 72% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: First Capital, Inc. (First Capital) is the savings and loan holding company of First Harrison Bank (the Bank). The Bank is a federally-chartered savings bank, which provides various banking services to individuals and business customers through a network of over 17 locations in Indiana and Kentucky. The Bank offers real estate mortgage loans. Its loan portfolio includes residential loans, construction loans, commercial real estate loans, commercial business loans and consumer loans. Its consumer loan portfolio consists of home equity and second mortgage loans, and automobile and truck loans. It originates mortgage loans for sale in the secondary market, and also sells non-deposit investment products through a financial services division. FHB Risk Mitigation Services, Inc. is the subsidiary of the Company that provides property and casualty insurance coverage to the Company, the Bank and the Bank's subsidiaries, and reinsurance to over eight other third party insurance companies.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

MARKETAXESS HOLDINGS INC. ( MKTX ) is a large-cap growth stock in the Investment Services industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: MarketAxess Holdings Inc. operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using its trading technology. Institutional investor and broker-dealer firms are users of trading platform, accessing global liquidity in the United States corporate bonds, emerging markets and high-yield bonds, European bonds, the United States agency bonds, municipal bonds, credit default swaps and other fixed-income securities. Through Open Trading protocols, it executes trades in certain bonds between and among institutional investor and broker-dealer clients in a trading environment on a matched principal basis. It offers trading-related products and services, including market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments, and execution services for exchange-traded fund managers.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

STELLUS CAPITAL INVESTMENT CORP ( SCM ) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company originates and invests primarily in private middle-market companies through first lien, second lien, unitranche and mezzanine debt financing, with corresponding equity co-investments. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. It invests in various sectors, such as business services, energy, general industrial, government services, healthcare, software and specialty finance. Its investment advisor is Stellus Capital Management, LLC (Stellus Capital Management). Stellus Capital Management is responsible for analyzing investment opportunities, conducting research and performing due diligence on investments, negotiating and structuring the Company's investments, originating prospective investments, and monitoring its investments and portfolio companies on an ongoing basis.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

PAYSIGN INC ( PAYS ) is a small-cap growth stock in the Business Services industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Paysign, Inc., formerly 3PEA International, Inc., is a payment solutions company providing prepaid card programs and processing services for corporate, consumer and government applications. It focuses on the evaluation of payment terminal software and hardware technology. It markets prepaid debit card solutions under its PaySign brand. It is engaged in the development of a secure payment gateway and hardware device, which utilizes encryption technology and secure key exchange to facilitate personal identification number ( PIN ) debit transactions over the Internet. Its products and services include The PaySign Brand; Incentive Rewards; Source Plasma Donor Payments; Pharmaceutical Market, which includes PaySign Co-Pay Assistance, and Buy and Bill, and other products, such as Survey Instant Rewards. Through its platform, it provides various services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting and customer service.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on Motley Fool has returned 516.94% vs. 185.13% for the S&P 500. For more details on this strategy, click here

About Motley Fool : Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.

About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Stocks
Referenced Symbols: FCAP , MKTX , SCM , PAYS , PIN



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