Foolish Small Cap 8 Revised Screen

A methodology for screening for small stocks was developed by David and Tom Gardner, founders of the Motley Fool. Called the Foolish 8, their strategy uses eight criteria to look for profitable and rapidly growing small companies with strong price momentum. It's partly based upon the premise that the lack of coverage and interest in small-cap companies presents a better opportunity to locate undiscovered, attractive investment candidates. The original Foolish Small Cap 8 screen was designed to flag potential growth companies based upon a combination of market- and business-related factors. Recently, a revised version of the screen added elements of valuation and management effectiveness and relaxed the small-cap criteria.