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SMALL WONDERS: Tessera Technologies
Ticker: TSRA
Market cap (billions): $0.9
P/E ratio*: 15
Return on assets: 14%
Free cash flow** (millions): $72

Tessera Technologies develops and licenses miniaturization technology to make tiny chips for digital music players, PCs, video game consoles and mobile phones. It's a lucrative business, with 39% growth in sales over the past three years.

And since the company receives royalties based on the number of units its clients sell - rather than on the dollar amount of products sold - Tessera may not be as negatively affected if a consumer slowdown puts pricing pressure on electronics makers.

NEXT: FOREIGN VALUE: BP
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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