Zacks.com Announces That Richard Moroney Highlights the Following Stocks: First Cash Financial Services, Selective Insurance, Sun Hydraulics, West, and Zygo.

CHICAGO -- Richard Moroney designed a screen that finds quality takeover candidates. Learn about the screen's characteristics and discover First Cash Financial Services (NASDAQ:FCFS), Selective Insurance (NASDAQ:SIGI), Sun Hydraulics (NASDAQ:SNHY), West (NASDAQ:WSTC), and Zygo (NASDAQ:ZIGO). Richard Moroney is the editor of the Upside newsletter. Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Highlights from the December 5 Featured Expert column by Richard Moroney include:

A Sampling of Takeover Plays:

First Cash Financial Services (NASDAQ:FCFS), an operator of pawnshops and check-cashing stores, has an enterprise multiple of 9.1, compared to 12.6 for the average consumer-finance firm. Over the last three years, per-share earnings have grown at a 25% annualized rate, reflecting robust loan volumes, improved fee revenue, and an expanding store base. Strong cash flow has allowed the company to increase its cash position while adding new locations. At the end of September, cash was about $30 million, or $1.90 per share -- more than double the year earlier level.

Selective Insurance (NASDAQ:SIGI) trades at an enterprise multiple of 6.8, ranking among the cheapest one-fifth of the roughly 5,000 stocks in Moroney and his team's Quadrix universe. The company sells property and casualty insurance through roughly 750 independent agents in 20 Eastern and Midwestern states. Selective also offers medical-claims management, and human-resources services. The company operates in a highly competitive industry with significantly larger rivals. But Selective has a reputation for excellent service, helping it retain profitable accounts. The company boasts solid finances and carries an A+ financial-strength rating from A.M. Best -- an important selling tool. Cash flow reached a record $162 million in the September quarter, up 15% from a year earlier. Selective's robust cash flow may be used for share repurchases or dividend increases.

Other Takeover Candidates Include:

Sun Hydraulics (NASDAQ:SNHY) is a leading designer and manufacturer of high-performance, screw-in hydraulic cartridge valves and manifolds which control force, speed and motion as integral components in fluid power systems.

West (NASDAQ:WSTC) is one of the largest independent teleservices companies in the United States, and provides a full range of customized telecommunications-based services to business clients on an outsourced basis. The company conducts its business on a fully-integrated basis principally through three wholly-owned subsidiaries: West Telemarketing Corp.; West Telemarketing Outbound; and West Interactive.

Zygo (NASDAQ:ZIGO) is a world leader in metrology, process control, and yield enhancement solutions for high precision manufacturing industries. The company's products are based on its core competencies in high precision measurement, including interferometry, confocal scanning optical microscopy, application specific vision metrology, atomic force microscopy, systems integration, automated piece parts handling, and precision optical components.

Read Richard Moroney's commentary regarding his takeover screen and learn about other stocks by clicking: http://at.zacks.com/?id=85

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