These seven stocks are all flying under the radar of mainstream analysts, yet their relative valuation ratios mostly suggest they are cheap.

Fiducian and OTOC reported yesterday, and their results were outstanding.

Fiducian, the wealth management business, yesterday reported a 22% increase in underlying net profit to $7 million for the 2016 financial year (FY16), and a 25% increase in its dividend to 12.5 cents. The company also has $9.7m of cash in its bank account and trades on an undemanding P/E ratio of 13x.

OTOC offers surveying, planning and design services to many sectors including government. The company also reported yesterday and delivered a 246% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $16.2 million as revenues went close to doubling compared to FY15.

Dicker Data and Tamawood we have both covered in more detail previously, but the former still trades on a prospective P/E of ~11.6x and Tamawood recently reported double-digit growth in earnings per share.

Joyce and FSA group I covered in more detail last month, but both still look attractive at current prices.

ICSGLobal is a software business primarily supplying billing software in the UK for healthcare professionals. At its half year result earlier this year, ICSGLobal saw profit increase 30%, and upped its interim dividend by 33% and still trades on a prospective P/E ratio of around 14.6x.

Foolish takeaway

Focusing on the smaller end of the market can see investors thrash the overall market return, as smaller companies have the ability to generate enormous growth the big end of town simply can't.

The post 7 small cap bargains I'd buy right now with $7,000 appeared first on The Motley Fool Australia.

Another trend that is likely to be prominent in the future is the provision of health care and associated services.

You might be familiar with our ageing population, more people living longer and the demands that will place on the rest of the population. Well, here are the first four healthcare stocks with potentially huge rosy futures, in no particular order. If not already profitable, they likely will be soon and now might be the perfect time to jump aboard.

Nanosonics Ltd (ASX: NAN) has developed Trophon EPR for disinfecting ultrasound probes, which is much more efficient, healthier and easy to use than traditional methods. Sales recently rose 48%, and Nanosonics reported its first profit as it expands operations in North America and five new countries in Europe. Nanosonics also operates a 'razor and blades' model, selling Trophon systems, as well as consumables for use with the system. That makes for a steady supply of sales.

Somnomed Limited (ASX: SOM) recently reported an 18% increase in revenues, although it also saw a loss of $700,000 as sales and marketing expenses increased, so it's early days for this company. Somnomed has developed oral products (similar to mouthguards) to treat obstructive sleep apnea. Cheaper and less invasive than masks such as those from Resmed Inc (ASX: RMD), the company's products appear to be gathering appeal, and it may not be long before Somnomed is reporting consistent profits.

Pro Medicus Limited (ASX: PME) provides medical imaging software and services to hospitals, imaging centres and health care groups globally. Earlier this week Pro Medicus reported a 42.5% jump in revenues and a huge jump in net profit. The company even paid a dividend – albeit just 1 cent and unfranked – but it's a start. Sales are slowly ramping up, but given the business is software, much of the new revenue should virtually fall through to the bottom line.

ICSGLobal Ltd (ASX: ICS) is another software business, although it primarily supplies medical consultants and specialists with tailored billing services in the UK. Not strictly a health care company, ICS Global also recently invested in education provider OpenLearning. The company expects to report around 50% growth in net profit for the 2015 financial year.

So there you have a quick summary of four stocks, keep an eye out for part two, when I'll unveil the remaining 5 health care stocks with plenty of potential.

The post 9 juicy health care stocks to add to your portfolio: Part 1 appeared first on The Motley Fool Australia.

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.

So rather than speculate about what stocks I would buy under unarticulated circumstances, I've decided to write about four stocks I have actually bought with $10,000. In fact, I spent $12,932 on these four shares, so let's have a look at why I did that, and if those companies are still worth buying today.

I covered the first two companies on my list in Part 1 of this series. Here are purchases numbers three and four:

ICS Global Limited (ASX: ICS) is another little company that serves the medical industry. I like it because it has the potential to earn sticky recurring revenue that should grow as demand for medical services increases with the ageing population. This accords with my philosophy of tailwind investing, which requires that the majority of my shareholdings benefit from long-term changes, as I believe these slow shifts are often underestimated by myopic Mr Market. I bought $2,100 worth of ICS Global shares at a price of 4.2 cents per share – the same price it traded at when I first suggested it could thump the market.

The company's main business is managing billing for medical professionals. It grew revenue by over 10% from FY 2012 to FY 2013 and also from the first half of FY2013 to the first half of FY2014. Further growth could make the company extremely undervalued. I wouldn't be in a hurry to buy shares because it appears the former managing director is willing to sell at what I think are low prices, but if the report demonstrates decent growth, the current price is a steal. I'm certainly not selling at these prices. The worst thing about this company is that the board awarded themselves performance shares based on an extremely temporary share price spike to 6c which was of basically no use to shareholders. It is also rather illiquid.

Servcorp Limited (ASX: SRV) rounds out my four stocks as a lower risk investment. I spent $3,600 on shares at a price of $3.60 before writing this article on Servcorp when shares were trading at $3.72 and since then, I've received 16.5c in dividends.

The company's main business is providing serviced offices to other businesses. It has a huge cash hoard and management was savvy enough to sign a lot of new leases after the GFC. As each floor gradually improves occupancy, operating leverage kicks in. My reading of it is that the number of profitable floors continues to increase, so I wouldn't be surprised to see some stark improvements in operating cash-flow – at least until the next, global recession, depression or serious downturn. I'm not buying more shares at the last traded price of $4.91, but I'd be tempted to buy on any share price weakness, or if occupancy rates exceed expectations.

The post 4 stocks I actually bought with $10,000: Part 2 appeared first on The Motley Fool Australia.

For example, I first noticed Global Health Limited (ASX: GLH) when shares where trading at around four cents. I liked the idea of providing electronic medical record systems to hospitals, psychologists, and psychiatrists, but the company had a long history of losing money. The cashflow was nonetheless improving, and when the company subsequently announced an upbeat profit forecast, I became satisfied with the risk/reward split on offer. I began buying shares at 23.5c, and I'm now sitting on gains of well over 100% in less than a year. For that reason, I think it's worth keeping prospective speculative stocks on your watchlist.

ICSGlobal Ltd (ASX: ICS) is another tiny company with improving fortunes. It owns a medical billing company that manages billing for a variety of healthcare specialists. Its main competition is supposedly, "the incumbent secretary or practice manager who currently do the billing for the specialist." Its core competency is collecting debts from patients, and the company aims to do so more efficiently than medical secretaries. With no debt, a reasonable growth trajectory and consistent cashflow, I think the company is a reasonably low-risk microcap, only really speculative because of its size.

A promising but slightly higher risk play is Antaria Limited (ASX: ANO), a company that manufactures zinc oxide, the UV blocker in sunscreens and some cosmetics, and Alumina, a powdery substance used in cosmetics. The company has recently reported a small positive operating cashflow, despite facing a recent setback when a distributor decided to reduce inventory. The cash balance is a bit low for my liking (there is a possibility of capital raising), but the managing director Rade Dudurovic has been buying shares on market. So too has substantial shareholder Lev Mizikovsky, the founder (and major shareholder) of Tamawood Limited (ASX: TWD). The long-term angle I like about Antaria is that it can provide multiple brands with raw ingredients (and the dangers of skin cancer are well known). The long-term risk is that sunscreen and cosmetic manufacturers stop using nano-particles as UV blockers.

If you're looking for a safer option, I think Nearmap Limited (ASX: NEA) is well worth consideration, though it is (justifiably) more expensive. The company is still a bit speculative because it made a loss in FY 2012 and FY 2013. However, that was mainly as a result of legacy issues with the previous IP licensing business and the fact that the company had not yet begun charging user fees for its aerial images. It reported a modest profit in the first half of FY 2014, and boasts partnerships with serious internationals such as Google Inc (NASDAQ: GOOG) and Amazon.com Inc (NASDAQ: AMZN).

Another small company that I like is funds manager Australian Ethical Investment Limited (ASX: AEF). I have the impression the company is not taking full advantage of its brand though and it could improve marketing and communications by all reports. On the other hand, its investments have performed reasonably well, in particular its Small Companies superannuation fund, which has averaged 9.1% p.a. over the last 10 years and its Small Companies trust, boasting over 10% p.a. for 10 years. If the company can only emphasise the fact that its investments are considerably more ethical than the "ethical" option offered by most funds, it should be able to grow funds under management strongly. This is particularly true because young professionals increasingly support divestment campaigns, and younger investors will be contributing to superannuation for a long time to come.

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