Research

Roanoke Asset Management initially screens for companies with market capitalizations of less than $2 billion which are forecast to have earnings and sales growth of greater than 20%, improving margins and above average profitability ratios.  After meeting with management, a judgment is made about the management’s depth and quality, the company’s market position, the rate at which new product is being introduced and the degree to which the company appears to have good pricing flexibility.  Once these requirements have been met a valuation screen is applied.  This screen includes a relative analysis of the company’s P/E, P/E to three-year compound annual growth rate, its market capitalization to sales and its debt to total capital.

Street research is used when available to provide a framework for a more detailed analysis.  The Firm’s additional work involves numerous discussions with nontraditional sources to corroborate a particular point of view.

Each new idea is discussed and critiqued before being implemented.  The decision making process is a team effort with each portfolio manager having clearly defined industry research responsibility and accountability.