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Tickers in this Article: ETE, CNK, DPM, UIL, SVU


Last week, Kapitall interviewed Neil Hennessy, Portfolio Manager and Chief Investment Officer of The Hennessy Mutual Funds, who said one of his favorite investing strategies was to choose companies with price to sales ratios below 1.5. Inspired by this tactic, we used that as a starting point in creating the list of stocks below:

Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below.



The List
The list of 11 stocks below all meet the following requirements:

  • Price to Sales ratio below 1.5 (One dollar of sales in return for at least $1.50 in sales)
  • Dividend yields between 3-7%
  • Net institutional buying in the current quarter
  • Market cap above $300 million
So what do you think - are any of these names worthy investments? (Click here to access free, interactive tools to analyze these ideas.)

1. Energy Transfer Equity, L.P. (NYSE:ETE): Through its direct and indirect investments in the limited partner and general partner interests in Energy Transfer Partners, L.P., engages in midstream, intrastate, and interstate transportation of natural gas, as well as in storage of natural gas in the United States. Market cap at $8.9B, most recent closing price at $39.51. Price/Sales ratio at 1.08. Dividend yield at 6.27%. Net institutional purchases in the current quarter at 17.8M shares, which represents about 13.14% of the company's float of 135.46M shares.

2. Cinemark Holdings Inc. (NYSE:CNK): And its subsidiaries engage in the motion picture exhibition business. Market cap at $2.57B, most recent closing price at $22.04. Price/Sales ratio at 1.13. Dividend yield at 3.75%. Net institutional purchases in the current quarter at 10.0M shares, which represents about 9.91% of the company's float of 100.92M shares.

3. DCP Midstream Partners LP (NYSE:DPM): Engages in gathering, compressing, treating, processing, transporting, storing, and selling natural gas in the United States. Market cap at $1.83B, most recent closing price at $44.97. Price/Sales ratio at 1.16. Dividend yield at 5.71%. Net institutional purchases in the current quarter at 3.9M shares, which represents about 13.04% of the company's float of 29.90M shares.

4. UIL Holdings Corporation (NYSE:UIL): Operates in the energy sector in the United States. Market cap at $1.7B, most recent closing price at $33.16. Price/Sales ratio at 1.08. Dividend yield at 5.16%. Net institutional purchases in the current quarter at 2.8M shares, which represents about 5.62% of the company's float of 49.84M shares.

5. SUPERVALU Inc. (NYSE:SVU): Operates retail food stores in the United States. Market cap at $1.29B, most recent closing price at $6.07. Price/Sales ratio at 0.04. Dividend yield at 5.76%. Net institutional purchases in the current quarter at 18.2M shares, which represents about 8.66% of the company's float of 210.07M shares.

6. MDC Holdings Inc. (NYSE:MDC): Engages in homebuilding and financial services businesses in the United States. Market cap at $1.24B, most recent closing price at $25.46. Price/Sales ratio at 1.47. Dividend yield at 3.87%. Net institutional purchases in the current quarter at 4.4M shares, which represents about 11.12% of the company's float of 39.56M shares.

7. Genesis Energy LP (NYSE:GEL): Operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States. Market cap at $1.23B, most recent closing price at $30.92. Price/Sales ratio at 0.4. Dividend yield at 5.78%. Net institutional purchases in the current quarter at 3.7M shares, which represents about 6.25% of the company's float of 59.18M shares.

8. Spreadtrum Communications Inc. (Nasdaq:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $606.34M, most recent closing price at $12.76. Price/Sales ratio at 0.9. Dividend yield at 3.03%. Net institutional purchases in the current quarter at 9.5M shares, which represents about 31.67% of the company's float of 30.00M shares.

9. Maiden Holdings, Ltd. (Nasdaq:MHLD): Provides non-catastrophe inland marine and property coverage reinsurance solutions to the regional and specialty insurers in the United States and Europe. Market cap at $595.09M, most recent closing price at $8.04. Price/Sales ratio at 0.36. Dividend yield at 3.88%. Net institutional purchases in the current quarter at 3.4M shares, which represents about 6.66% of the company's float of 51.04M shares.

10. FutureFuel Corp. (NYSE:FF): Engages in the manufacture and sale of specialty chemicals and bio-based products primarily in the United States. Market cap at $428.08M, most recent closing price at $10.13. Price/Sales ratio at 1.38. Dividend yield at 3.86%. Net institutional purchases in the current quarter at 993.7K shares, which represents about 8.93% of the company's float of 11.13M shares.

11. Hot Topic Inc. (Nasdaq:HOTT): Operates as a mall- and Web-based specialty retailer in the United States. Market cap at $417.01M, most recent closing price at $9.71. Price/Sales ratio at 0.6. Dividend yield at 3.23%. Net institutional purchases in the current quarter at 1.8M shares, which represents about 5.08% of the company's float of 35.45M shares.

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Disclosure: Kapitall's Rebecca Lipman does not own shares of any companies mentioned above. Institutional data sourced from Fidelity, all other data sourced from Finviz.

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