2 small-caps I like

[parttimepro]

Disclaimer: I bought these last week. If lots of people buy these, I will be slightly richer. Always do your own DD.

RSTI: makes lasers for a variety of industrial applications. Diversified across industries and geographically. Trailing P/E of 15, forward of 12.3, great balance sheet (market cap 500 M, 50 M debt, 100 M cash). Mean estimate of 12.5% earnings growth in the next year. Raking in cash and using it to expand the business. Good management, from what I understand. It's down recently because their recent earnings announcement was only a slight upside surprise over guidance, rather than a giant one.

SIRF: Designs and makes GPS units for consumer applications. Specifically, builds for Onstar vehicle navigation systems, and will likely expand into cell phones in near future. Trailing P/E is 17.8, mean earnings growth estimate is 35% next year. Another great balance sheet, with market cap of 500M, just 2.5 M debt, and 100 M cash. This one is cheap, and may remain so for a while. Conexant (CNXT) owns a good chunk of the company, and is probably selling it to pay off their debt. Once they're done, I expect to see valuation more in line with a company with these sorts of growth prospects.