The recent drop suggests my trust was well placed in these indicators, but it is not too late to position your portfolio to benefit from a falling dollar. Indeed, it would appear that there are still cheap stocks with foreign currency exposure available.

For example, you could buy shares in CPT Global Limited (ASX: CGO) at a lower price than I did, and roughly the same price they were purchased by Pie Funds. The tiny IT consulting company's business is to test, tune and improve the systems set up by other (usually larger) IT businesses, with the aim of reducing operating costs for clients. 

Revenue from North America almost doubled in 2014, growing to $12.3 million from $6.8 million in 2013. However, revenue from Australia decreased by over $4 million to $19.9 million – though margins were actually improved. The expected jump in profit did not eventuate, largely because of a sharp increase in "Other Expenses" of over 50%. If this increase in other expenses contines, I will have to admit my buy thesis is largely defeated, although a falling Australian dollar should at least boost earnings in Australian dollar terms. The company trades on a trailing P/E ratio of 12 and a trailing dividend yield of 6.4%. I consider it likely earnings will grow, but I doubt the dividend will.

Another little company slated to benefit from a falling Australian dollar is ICS Global Ltd (ASX: ICS), an Australian company that owns a medical billing and collections business in the UK. Essentially, the operating business provides a service to medical practitioners, and demand for its services is therefore likely to grow, as long as the company does a good job. The company has a market capitalisation of $10 million and just over $1 million cash in the bank. It earned over $600,000 in FY 2014, and reported that it had signed its biggest customer in the first quarter of FY 2015. The company trades on a trailing yield of 3.3% and earns its revenue in pounds.

Finally, there is SDI Limited (ASX: SDI), a manufacturer of dental products that Motley Fool analyst Andrew Page covered thoroughly in this article. The company benefits from a falling silver price, because silver is one of its input costs, as well as a falling Australian dollar because the majority of revenue received is in a foreign currency. A number of new products are expected to grow revenues on a constant currency basis in FY 2015. The company trades on a trailing P/E ratio of 11, and a paltry 1.3% dividend yield. However, the 2014 dividend was up 40% in comparison to 2013, and as new products begin to gain traction, there are good reasons to expect further increases.

The post 3 super-cheap small-caps for the falling Aussie dollar appeared first on The Motley Fool Australia.

Noah Principle: Predicting rain doesn't count, building arks does.

It was all very well to accurately predict the explosion in internet and mobile data use, but that alone was not enough. Those investors who bought shares in Telstra Corporation Ltd (ASX: TLS) in 2011, around the time it was clear Telstra would be a beneficiary of these trends, are sitting on gains of over 100% in less than three years including dividends – and that's a blue-chip stock! Smaller companies can generate much higher returns as they grow…

So with that in mind, here are three small companies that tailwind investors are watching:

1) SDI Limited (ASX: SDI) is a company that makes and distributes amalgam and composite restorative materials for dentists and is already up over 20% since certain value investors identified the opportunity recently. Although I did buy shares myself, I'm not as enthusiastic as some others because the company's products – while competitively priced – are no longer favoured by dentists in Australia.

Having said that the company recently announced its second-half results would be much improved on the prior corresponding period and the price remains reasonably attractive at just under 60c (though my purchase price is lower). Directors have been buying significant chunks of shares at less than 10% below current prices, indicating that shares are unlikely to be particularly overvalued.

Potential tailwinds: The company exports 90% of products. Worldwide, I posit that humans are living longer and becoming more aware of dental health, especially in places like Brazil and China where poverty is, gradually, being alleviated. SDI should benefit from this trend. Also, as the mining capex boom subsides, the Australian dollar should weaken, boosting SDI's profits in AUD terms.

2) CPT Global Limited (ASX: CGO) is a small IT company that specialises in performance tuning. That means it improves on the systems set up by other IT crews with goals such as improving speeds, reducing required computing resources or adding a greater number of users more easily. While I'm generally not a fan of the lumpy and often unpredictable nature of IT consulting revenues, I'm very attracted to the current price of CPT Global. The stock is quite illiquid, so savvy buyers will exhibit patience – there have been sellers at 70c for quite some time. Though the upcoming dividend is not known, it's quite possible the company will pay a generous dividend yield of over 8% (annualised).

Potential Tailwind: IT systems continue to become more complex as software and hardware improves. As a result, so does the potential benefit of getting the "second opinion" that CPT Global can provide.

3) Somnomed Limited (ASX: SOM) is a company that makes and sells mouthguard-like devices for continuous open airway therapy for sleep apnoea. While Somnomed faces formidable competition from ResMed Inc. (CHESS) (ASX: RMD) and Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), there is a point of differentiation because Somnomed's product is far more portable (and quieter, as it is not a machine).

Potential Tailwinds: Not only are people becoming more mobile (making portability important), but sleep apnoea is more common in older, overweight people. The ageing population will therefore increase the number of sleep apnoea patients as will the ongoing obesity epidemic.

The post 3 tailwind stocks for powerful returns appeared first on The Motley Fool Australia.