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SMALL WONDERS: AVX
Ticker: AVX
Market cap (billions): $2.3
P/E ratio*: 15
Return on assets: 8%
Free cash flow** (millions): $193

AVX makes capacitors that store and regulate electricity in devices. Plus, it's 71% owned by the Japanese electronics-parts company Kyocera, so AVX has been able to weather the falling dollar.

The company, which has no debt, has used cash to boost its dividend and buy back stock. That also means AVX has the resources to wait out the down part of a cycle. Plus, its price of about 15 times this year's earnings estimates is much lower than its competitors.

NEXT: SMALL WONDERS: Fair Isaac
Last updated June 20 2008: 2:35 PM ET
Criteria include market capitalizations between $250 million and $2.5 billion, at least 8% return on assets, positive free cash flow, and share price no more than $35.
*Based on previous 12-months' reported earnings.
**Latest fiscal year.
Source: Value Line; Zacks Investment Research
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* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer