A Rare Bargain Delivered in Time for Christmas
In today's expensive stock market, cheap companies with capable managers can be hard to find. Fortunately, big hedge funds often overlook small-cap companies in the midst of dramatic changes that present opportunities for outsized returns for nimble investors.
The turnaround of Portland, Oregon-based Schmitt Industries (SMIT) is one such example. Activist investor Michael Zapata took the reins at Schmitt a year ago with a plan to reshape the formerly family-run business into a leaner, more efficient operation focused on shareholder returns. One year later, he