No. Ticker Company Name Description RemarksPrice at Time of WritingCurrent Price DCF* Graham Value Initial

QSII

Quality SystemsDevelops information systems to automatemedical practicesexcellent FCF, margins, returns$35.59$48.03 $38.00 $43.00Y5

PETS

PetMed ExpressMarkets prescription and nonprescriptionpet medications and productsexcellent FCF, margins, returns$17.30$15.49 $18.00$22.00Y11

DECK

Deckers OutdoorMarkets UGG, Teva, TSUBO, and Simplebrands of shoesgood numbers all around$60.70$63.82 $70.00 $106.00Y12

HITT

Hittite MicrowaveDevelops circuits and modules for voice anddata transfer systemsexcellent FCF, margins, returns$27.37$32.37 $26.00 $47.00Y13

KTII

K-TronInternationalDesigns and markets mechanical sorting andassembly equipmentexcellent FCF, consistent margins,good returns$77.69$67.69 $110.00 $123.00Y14

BOOM

Dynamic MaterialsProvides explosive welding andmanufacturing servicesexcellent FCF, returns, marginsfluctuate$15.47$11.65 $16.00 $35.00Y15

MIDD

MiddlebyManufactures commercial cookingequipmentexcellent FCF, returns, margins,slightly high debt$31.47$38.95 $44.00 $65.00Y20

STRA

Strayer Educationowns and operates universities and onlinecoursesexcellent FCF, margins, returns$237.70$164.58$118.00$142.00Y22

JCOM

j2 GlobalCommunicationsprovides value added messaging andcommunication servicesexcellent FCF, margins, returns$18.90$24.37$24.00$33.00Y25

CMTL

ComtechTelecommuncationsdevelops advanced communicationssolutionsStrong FCF, good CROIC, increasingmargins$46.81$27.51$41.00$52.00Y37

NTRI

Nutirsystemprovides weight loss management andfitness programsexcellent numbers and margins$13.38$14.86$30.00$50.00Y41

RATE

Bankrateoperates online consumer banking andfinance networkexcellent numbers and margins$34.71$25.97$27.00$37.00Y42

NILE

Blue Nileretails diamonds and fine jewelry onlinegood solid consistent numbers$27.84$36.62$32.00$32.00Y45

RAVN

Raven Industriesmakes industrial, agricultural, constructionand aerospace productsconsistent, increasing margins,solid numbers$25.15$21.36$20.00$47.90Y46

CHTT

Chattemmarkets OTC health care and consumerproductsexcellent FCF and CROIC, badshareholder equity, impressivemargins$65.30$52.47$30.00$87.00Y47

JOSB

Jos. A. BankClothiersretails men's clothing and apparelexcellent margins, good FCF butlow CROIC$26.15$36.87$44.00$58.00Y50

ANSS

Ansysdevelops engineering simulation softwareexcellent numbers and margins$29.92$27.05$17.00$22.00Y56

DIOD

Diodesmanufactures and distributessemiconductorsimpressive since 2001 but CROIC istoo low. 70% undervalued though.Worth taking a look$4.39$12.22$15.00$20.00Y58

FDS

FactSet ResearchSystemsprovides online financial information toinvestment communityexcellent numbers and consistentmargins$38.36$48.84$44.00$70.00Y68

VIVO

MeridianBiosciencemarkets diagnostic test kits and specialtybiological productsexcellent margins, good CROIC butlow FCF$24.29$17.31$12.00$25.00Y71

PRAA

Portfolio RecoveryAssociatescollects portfolios of defaulted consumerdebtstrong consistent numbers but veryslight decreasing margins$33.20$32.43$64.00$85.00Y

2008 Forbes 200 Best Small Companies

*intrinsic value calculated automatically with spreadsheet. Detailed calculation required later on.DCF and Graham Fair Values were at time of writing