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| News - Archive |
Feb 09, 2009:
Thinking Big? Buy Small Cap Stocks
""About 90 percent of the time, the small-cap stocks actually perform the best in the 12 months after a recession. We think small-cap stocks offer a great risk-reward." Titan Machinery (TITN)... Fossil (FOSL)... Aegean Marine Petroleum Network (ANW)... Atwood Oceanics (ATW)..."
Feb 06, 2009:
Sinking values push firms down to small-cap status
"59 companies on a major U.S. stock market exchange were among the elite with large market values of $3 billion or more at the end of 2007, but now are small-capitalization stocks worth $1 billion or less, according to a USA TODAY analysis of data from Standard & Poor's Capital IQ. The list includes well-known companies such as mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE), retailer Office Depot (ODP) and rubber clog maker Crocs (CROX)."
Feb 06, 2009:
Legend Advisory's Artificial Intelligence, AANN, Advises an Increase in Exposure to Large- and Small-Cap Domestic Equities
""Market volatility, as measured by daily total returns of the S&P 500 Index, has recently reached a high not seen since 1933. Excess volatility is typically indicative of fear, which is historically correlated with a market bottom.""
Feb 05, 2009:
Ebix Added to Standard and Poor’s SmallCap 600 GICS Application Software Sub-Industry Index
"Ebix, Inc. (EBIX), a leading international developer and supplier of software and e-commerce solutions to the insurance industry announced today that Standard and Poor’s has added Ebix, Inc. to their SmallCap 600 GICS Application Software Sub-Industry Index."
Feb 03, 2009:
95 pct of small-cap managers outperformed Jan
"Merrill Lynch on Tuesday said that a vast majority of small-cap value managers outperformed the index in January. About 95 percent of the funds fell an average of 11 percent in the month, while the Russell 2000 Value was down a steeper 14.3 percent."
Jan 29, 2009:
Shooting Up With A Small-Cap
"One of his latest buys is Buffalo Grove, Ill.-based Akorn, Inc. (AKRX), a developer of ophthalmic and injectable pharmaceutical products. "Its main growth driver is its generic Tetanus Diphtheria vaccine, which the company estimates has already taken 25% of the market share versus its brand-name competitor in just a little over a year," Jim Oberweis is betting on pharmaceutical injection specialist Akorn adding profitability to triple-digit sales growth."
Jan 27, 2009:
Small-Cap Health Stocks Growing 13% Outpaced by J&J
"Small-cap health-care stocks are trading at the cheapest valuations on record, even though their profits grow twice as fast as at Pfizer Inc. and Johnson & Johnson, the industry’s biggest companies."
Jan 27, 2009:
Four Must-See Charts of the Day: Small-Caps to Watch
"Taser International (TASR)... Geron Corporation (GERN)... Smith & Wesson Holding (SWHC)... Yingli Green Energy (YGE)..."
Jan 20, 2009:
American Science and Engineering, Inc. Added to Standard & Poor’s SmallCap 600 Index
"American Science and Engineering, Inc. (AS&E) (ASEI), a leading worldwide supplier of innovative X-ray detection solutions, has been added to the Standard and Poor’s (S&P) SmallCap 600 index."
Dec 11, 2008:
Vanguard registers for new small-cap index fund
"The new Vanguard FTSE All-World ex-US Small-Cap Index Fund (VFWIX) is expected to be available in the first quarter of 2009... The fund will invest in a broad sampling of securities from the benchmark FTSE Global Small Cap ex US Index, which comprises more than 3,300 stocks of companies in 47 countries outside the U.S."
Sep 05, 2008:
Genuity shows small-cap prowess
"Genuity Capital Markets continues to show a deft touch in small-cap markets, advising Friday on the $35-million sale of laser maker Virtek Vision International (VRK) to Gerber Scientific (GRB)."
Aug 12, 2008:
Why Small Caps Are "Shining"
"Recall that the dollar strength generally hurts the larger U.S. multinational companies more as their exports become more expensive overseas. With a more U.S.-centric focus, the small cap companies listed on the Russell 2000, however, typically don’t have this international exposure and are less affected by a rally in the dollar."
Aug 12, 2008:
A winner in your portfolio: small-cap stocks on a hot streak
"The Russell 2,000 index of small-capitalization issues rocketed today, continuing its sharp rebound since mid-July... Small-company shares have been outperforming big stocks since about mid-May, when the S&P 500 reached its spring high."
Aug 12, 2008:
Smallcap Stocks: Regaining Their Mojo?
"The Russell 2000 is very close to registering its second consecutive higher rally high. This impending second consecutive higher rally high solidifies my contention... that small cap stocks are in an uptrend which traces its genesis to the March 17th lower pullback low."
Aug 12, 2008:
Merrill Lynch's Strategies for a Volatile Small Cap Market
"In the past five periods of volatility reviewed, a "value" strategy appears to have beaten out "growth"... with the Russell 2000 Value Index (IWN) gaining an average of 11.2% versus just a rise of 3.9% for the Russell 2000 Growth Index (IWO). However, things are a bit different in this current period of volatility..."
Aug 08, 2008:
Microcap Stocks on a Roll
"For a year, equity investors shunned smaller companies in favor of larger, more recognizable names as the slowing economy, credit crisis, and rising commodity prices pummeled the stock market. Starting in early July, however, the market's mood flipped. Money suddenly has poured into small-cap stocks, especially the tiniest of the tiny—the "microcap" stocks."
Aug 08, 2008:
Small-Cap Party Time
"There's been nothing small about the recent performance by the Russell 2000. A surprising move catching a lot of investors by surprise has been the big bounce of small-caps over the past four weeks. Over the past month through Wednesday, the Russell 2000 has been up 10.3%, versus 3.8% for the Dow and 2.9% for the S&P 500."
Aug 07, 2008:
3 Small-Cap Stocks the Pros Like
"Large caps trumped small caps in 2007, but so far this year, smaller stocks are in the lead: The small-company Russell 2000, which has bounced back 10 percent from its mid-March low, is down 7 percent so far in 2008, versus 14 percent for the S&P 500 stock index."
Aug 05, 2008:
U.S. Small-Cap Stocks Regain Leadership Role
"Small caps, as gauged by the iShares Russell 2000 index (IWM), bucked the downtrend in July with a 3.29% gain. The benchmark SPDRs S&P 500 (SPY), meanwhile, lost 0.9%... Small caps started outperforming large caps when the U.S. dollar stopped falling in March and large caps stopped benefiting from a weak dollar..."
Jul 16, 2008:
Two Small Cap Gems
"With Zinc currently trading in the $0.80/lb to $0.90/lb range we believe Horsehead Holding Corp. (ZINC) will be a good play on any rebound in the commodity. KVH Industries (KVHI) is a profitable company with little debt that develops, manufactures, and markets mobile communications products."
Jul 14, 2008:
5 Top Micro-Cap Stocks
"Boots & Coots Int'l Well Control (WEL)... U.S. Global Investors... Abraxas Petroleum... TransGlobe Energy (TGA)... Zhongpin (HOGS)..."
Jul 01, 2008:
Small Caps in a Risky Market
"If you look year to date, small caps are just about the best-performing indices this year."
Jun 21, 2008:
Bargains Abound in Small-Caps
"We want to provide some historical perspective on the low-priced stock sector so that readers can maximize the value of the stocks in the Under $10 model portfolio..."
Jun 13, 2008:
Of Mutual Interest: Investors wary of small-cap volatility might miss bargains
"Small-cap stocks often endure a drubbing when the economy weakens and investors flock to the safety of large companies. But investors who simply rush for well-known names might miss some bargains... Investors willing to brave the volatility of small-caps can find some investments that can prosper even in a slowing economy."
Jun 03, 2008:
Surf's Up For Small Caps
"High-growth small caps remain quite cheap by historical standards. Even after the 12% rise this quarter, high-growth small-cap stocks are trading for about the same P/E ratios as they were at the end of March."
May 30, 2008:
Small-cap gems
"California Micro Devices (CAMD)... CommScope (CTV)... Arris Group (ARRS)... Terra Industries (TRA)... CF Industries (CF)..."
May 13, 2008:
Follow The Fed Into Small Caps
"The key is real interest rates: the nominal (or stated) interest rate minus the rate of inflation. Negative real interest rates indicate a loose monetary policy and favor small cap stocks, and positive real interest rates indicate a tight monetary policy favoring large cap stocks like you would find in the S&P 500."
Mar 07, 2008:
Top Five Small-Cap Stocks
"Axsys Technologies (AXYS)... CAM Commerce Solutions Inc. (CADA)... Exactech (EXAC)... Key Technology (KTEC)... Gorman-Rupp (GRC)..."
Feb 29, 2008:
Top Five Small-Cap Stocks
"CAM (CADA)... Axsys Technologies (AXYS)... Exactech (EXAC)... AZZ (AZZ)... Rick's Cabaret (RICK)..."
Feb 21, 2008:
Small-Cap Rally, Ferragamo's Dilemma, China's Options: Timshel
"Small-value stocks got a much-needed lift after the Federal Reserve cut interest rates by 1.25 percentage points from Jan. 22 to Jan. 30..."
Feb 15, 2008:
Top Five Small-Cap Stocks
"CAM Commerce Solutions (CADA)... Energysouth (ENSI)... Axsys Technologies (AXYS)... Exactech (EXAC)... Key Technology (KTEC)..."
Feb 15, 2008:
Investing: Stick with small company stocks
"Profits are expected to fall 22 percent for the large-cap S&P 500 companies for the fourth quarter... But earnings are estimated to fall 1 percent for S&P 400 midcaps and 0.4 percent for small caps on the S&P 600..."
Feb 14, 2008:
National Penn to Join S&P SmallCap 600
"National Penn Bancshares Inc. will replace Bradley Pharmaceuticals Inc. in the S&P SmallCap 600... Bradley is being acquired by Nycomed..."
Feb 11, 2008:
Home Properties to Join S&P SmallCap 600
"Standard & Poor's said real estate investment trust Home Properties Inc. will replace Kellwood Co. in the S&P SmallCap 600... Kellwood, an apparel maker, has agreed to be taken private by Sun Capital Securities Group."
Jan 31, 2008:
Small-Cap U.S. Stocks Rally After JPMorgan Predicts 12% Advance
"The Russell 2000 Index gained almost twice as much as the Standard & Poor's 500 Index after JPMorgan Chase & Co. said the measure of small U.S. companies will surge because its members are cheap and investors are too pessimistic."
Sep 15, 2007:
Top Five Small-Cap Stocks
"LSI Industries (LYTS)... Bio-Reference Laboratories (BRLI)... Boston Beer (SAM)... CAM Commerce Solutions (CADA)... Preferred Bank (PFBC)..."
Sep 14, 2007:
5 Top Micro-Cap Stocks
"Northrim Bancorp (Nasdaq: NRIM)... Ark Restaurants (Nasdaq: ARKR)... Telular (Nasdaq: WRLS)... White Electronics Designs (Nasdaq: WEDC)... Portec Rail Products (Nasdaq: PRPX)..."
Sep 13, 2007:
Small-cap Focus: Weak Forecast, Credit Fears Slam Syntax-Brillian Shares
"Syntax-Brillian Corp.shares plunged almost 35% on Thursday after the maker of digital televisions and cameras reported a disappointing first-quarter outlook and the departure of its chief financial officer, which outweighed its upbeat fourth-quarter earnings report."
Sep 13, 2007:
Small-Cap Spotlight: Perficient
"Following the shake-out earlier this decade, all that was left on the IT consulting landscape were a few large players like Electronic Data Systems (EDS) and Unisys (UIS). Perficient seized on the opportunity created by these giants' inability or unwillingness to target the small and midsize businesses that make up Perficient's customer base."
Sep 12, 2007:
Small-Cap Caution, Porsche's VW Stake, Tesco's Outlook
"Small lags large. The Russell 2000 Index, a widely followed gauge of smaller companies, has trailed the Standard & Poor's 500 Index since May 2006. Before then, the Russell 2000 led for seven years running... Growth beats value. The Russell 2000 Growth Index, beaten in six of the past seven years by a similar index of so-called value stocks, is comfortably ahead this year."
Sep 10, 2007:
Omnicell to Join S&P SmallCap 600
"Omnicell Inc. will replace Chaparral Steel Co. in the S&P SmallCap 600... Steel producer Chaparral Steel, based in Midlothian, Texas, is being acquired by Gerdau AmeriSteel Corp. in a deal that is pending final approval. Mountain View, Calif.-based Omnicell, a provider of patient safety technology, will be added to the S&P SmallCap 600 GICS Health Care Technology Sub-Industry index."
Sep 07, 2007:
Small-Cap Spotlight: Trying on Men's Wearhouse
"Based on the constant demand for tuxedos -- which Men's Wearhouse has just begun to penetrate -- and management's long-term commitment to increasing shareholder value, I believe shares are headed to $60 in the short term, or 20% higher than the current price."
Sep 06, 2007:
Cabela's To Replace EFunds In S&P SmallCap 600
"Standard & Poor's... announced that Cabela's Inc. (CAB) would replace eFunds Corp. (EFD) in the S&P SmallCap 600... eFunds is being acquired by S&P 500 constituent Fidelity National Information Services Inc. (FIS)..."
Sep 06, 2007:
Color to the Numbers: The Best Small-Cap Growth Stocks
"Zix (Nasdaq: ZIXI)... American Dairy (NYSE: ADY)... Smith Micro Software (Nasdaq: SMSI)... Perficient (Nasdaq: PRFT)... The Knot (Nasdaq: KNOT)... TASER (Nasdaq: TASR)... Pacific Ethanol (Nasdaq: PEIX)..."
Aug 24, 2007:
International Small-cap ETF Could Make a Big Rebound
"For the last five years, small-cap exchange traded funds (ETFs) have outperformed large-cap ETFs worldwide. For investors looking to invest in international small-caps, one option to consider is the WisdomTree International SmallCap Dividend (DLS)."
Aug 23, 2007:
Small-cap Focus: GPS competition tempers views on Sirf Technology
"In the growing market for global-positioning system devices, few companies enjoy a position of strength, yet face as many potential challenges as Sirf Technology Holdings Inc."
Aug 23, 2007:
Small-Cap Spotlight: Chewing on Chipotle
"Chipotle does trade at an expensive multiple of 40 times 2008 earnings. But the company is expected to grow earnings by more than 25% over the next two years... Plus, growth projections could prove to be conservative given that management suggests that its penetration rate for stores in the U.S. is in the thousands... The company has roughly 600 stores..."
Aug 21, 2007:
Small Cap Oil: Producing Potential
"Quicksilver Resources (NYSE:KWK), with a market capitalization of just over $3 billion and sales of $450 million... Whiting Petroleum (NYSE:WLL), with a market capitalization of $1.5 billion and sales of $747 million... Delta Petroleum (Nasdaq:DPTR)..."
Aug 08, 2007:
Guru Picks: Small-Cap Blues Don't Bother Gurus
"Since its July 19 high, the S&P 500 has lost 7.7%. Meanwhile, the Russell 2000 small-cap index has lost 11.3%. Top investors at Marketocracy spent last week on a buying spree, scooping up small-cap shares that they thought were due for gains."
Jul 27, 2007:
Three Smallcap IT Outsourcing Stocks
"A handful of small-cap companies are, in fact, holding their own in the IT outsourcing business... Zanett Inc. (NasdaqCM: ZANE)... Pomeroy IT Solutions Inc. (NasdaqGM: PMRY)... Bell Industries Inc. (AMEX: BI)..."
Jul 24, 2007:
Fastest Growing Microcaps List: Six Favorites
"Abatix (NasdaqCM: ABIX)... Elecsys (AMEX: ASY)... Trio-Tech Int’l (AMEX: TRT)... American Medical Alert (NasdaqCM: AMAC)... Wayside Technology (NasdaqGM: WSTG)... Traffix (NasdaqGM: TRFX)..."
Jul 20, 2007:
Wham Bam Micro-Cap Scam
"Some micro-cap scams are obvious, but others are not. Do you know how to identify a scam?"
Jul 20, 2007:
5 Top Micro-Cap Stocks
"Exactech (Nasdaq: EXAC)... Rentrak (Nasdaq: RENT)... MAXXAM (AMEX: MXM)... MC Shipping (AMEX: MCX)... USA Technologies (Nasdaq: USAT)..."
Jul 15, 2007:
Growth Stocks Excel in Many Areas
"Mid-cap growth funds are up 14 percent this year, small-caps up 12 percent and large-caps up 11 percent, according to Morningstar Inc."
Jul 14, 2007:
Top Five Small-Cap Stocks
"American Software (AMSWA)... Waste Industries USA (WWIN)... EnergySouth (ENSI)... Balchem (BCPC)... Medtox Scientific (MTOX)..."
Jul 13, 2007:
5 Top Micro-Cap Stocks
"SRS Labs (Nasdaq: SRSL)... Hawkins Chemical (Nasdaq: HWKN)... BTU International (Nasdaq: BTUI)... Repligen (Nasdaq: RGEN)... Aviza Technology (Nasdaq: AVZA)..."
Jul 12, 2007:
Japan Small-Cap Stocks Rally as Livedoor Memory Fades
"Shares of Japan's smallest listed companies, Asia's worst performers last year, are staging a comeback as tougher accounting standards revive confidence in earnings reports and consumer spending rebounds. The Russell/Nomura Small Cap Index, whose 1,332 members have an average market value of $630 million, has outperformed the Nikkei 225 Stock Average in six of the last seven weeks."
Jul 09, 2007:
Consumer Staples Outpacing Small Caps? Time to Minimize Risk
"By looking at relationships between high-risk and low risk equities, one can get a feel for the possibility of a trend reversal; that is, the next time that the Consumer Staples Select Sector SPDR (XLP) shows signs of outperforming the iShares S&P SmallCap 600 Index (IJR), make sure that you know exactly what you will do to minimize your risk."
Jul 08, 2007:
Signs Pointing to Large-Caps
"For about two years, many market analysts have been predicting the return of large, growth-oriented companies. But smaller-company shares have persistently outrun the big boys. Now, with a fog of uncertainty clouding stocks, money managers are renewing their predictions that big companies will outpace smaller ones in the latter half of 2007."
Jul 06, 2007:
Big Stocks Will Beat Small Caps as Risks Rise
"Want to profit from a weak dollar? Big U.S. multinationals offer opportunities. Concerned about rising risk aversion, market volatility, interest rates and bond yields? Large stocks may present a defensive strategy."
Jul 06, 2007:
5 Top Micro-Cap Stocks
"OMNI Energy Services (Nasdaq: OMNI)... VSE (Nasdaq: VSEC)... Northrim Bancorp (Nasdaq: NRIM)... National Atlantic Holdings (Nasdaq: NAHC)... Portec Rail Products (Nasdaq: PRPX)..."
Jul 05, 2007:
S&P 500 could still be a bargain
"the surge in small-cap stocks is starting to look a bit old, says Larry Puglia, manager of T. Rowe Price Blue Chip Growth fund. 'It's a longer cycle than we typically see,' Puglia says. One reason for the longevity of the bull market for small-cap stocks: A flurry of buyouts, particularly from private-equity firms, has kept small-company stock prices rising. But if the buyout boom falters, small-company stocks could falter."
Jun 26, 2007:
Gurus Buy Into Small-Caps And AT&T
"Over the past decade, the S&P 500 has returned an annualized 7%, including dividends. The S&P small-cap index has returned 11.4% in that time."
Jun 26, 2007:
Key Technology Joins Russell Microcap Index
"Key Technology, Inc. (Nasdaq:KTEC) today announced that it will join the Russell Microcap Index..."
Jun 26, 2007:
Universal Insurance Holdings, Inc. Joins Russell Microcap Index
"Universal Insurance Holdings, Inc. ("UIH") (AMEX:UVE), a vertically integrated insurance holding company, joined the Russell Microcap Index..."
Jun 26, 2007:
Onstream Media Announces Being Added to Russell Microcap Index
"Onstream Media Corporation (Nasdaq: ONSM), a leading online service provider of live and on-demand, digital media communications and applications, today announced that the Company has been added to the Russell Microcap Index..."
Jun 19, 2007:
The Best Small Cap for 2007, Revisited
"The stock market's sizzling start this year has unquestionably benefited small-cap investors. Of the 15 stocks in our Best Small Cap for 2007 contest, 11 are in positive territory, with 10 already producing double-digit returns. The leader is... Dawson Geophysical (Nasdaq: DWSN), with a phenomenal return of 54.7% since Dec. 7."
Jun 18, 2007:
5 Low-Priced, High-Star Stocks
"CBIZ (NYSE: CBZ)... Hill International (Nasdaq: HINT)... Schiff Nutrition International (NYSE: WNI)... RAM Energy Resources (Nasdaq: RAME)... Taseko Mines (AMEX: TGB)..."
Jun 16, 2007:
MMA Now Offers Small Cap and Growth Index Funds
""The overall objective of LKCM's small-cap strategy is to provide superior returns relative to the firm's benchmark with a lower level of risk or volatility. Focusing on the criteria set forth in LKCM's investment philosophy such as competitively advantaged companies, high returns on invested capital, and strong balance sheets... [focusing] on companies between $400 million and $2 billion [market cap].""
Jun 14, 2007:
Large-Cap Stocks May Outperform in 2007
"Investors could see significant growth in large-cap stocks in 2007 as increasing volatility in financial markets pressures smaller companies, according to a recent report from Merrill Lynch. Large-cap stocks represent companies with market capitalization of $5 billion or more, while small-cap companies generally have market capitalization of $2 billion or less."
Jun 11, 2007:
Color to the Numbers: Top Small-Cap Growth Stocks
"Let's take a look at our small-cap growth screen for today... We'll use the following criteria: Market cap between $100 million and $1 billion; estimated growth rate in earnings per share for the next five years of at least 25%; eevenue growth for the current year to date of at least 30%."
Jun 08, 2007:
Five Maverick Small-Cap Stocks for a Volatile Market
"Transcend Services (TRCR) ... Ceragon Networks (CRNT) ... ENGlobal (ENG) ... Premier Exhibitions (PRXI) ... Medtox Scientific (MTOX) ..."
Jun 07, 2007:
Small-Cap Spotlight: Two Sides of Jones Soda
"Simply looking at the run that shares have made -- to $32 from $12 and back to $17 recently -- this is obviously a risky stock. But with shares now trading about 45% below their 52-week high set less than two months ago, I believe aggressive investors who missed this play earlier in the year are getting an attractive risk/reward."
May 27, 2007:
Do Small-Cap Pros Really Have a Leg Up?
"In the lesser-known world of small-cap stocks, the theory goes, a stock picker can more easily discover overlooked, bargain-priced stocks -- and handily beat his or her benchmark."
Apr 11, 2007:
TheStreet.com Ratings: Top 10 Large-Cap Stocks
"Marriott (MAR)... CSX (CSX)... AT&T (T)... Nucor (NUE)... J.C. Penney (JCP)... Vulcan Materials (VMC)... Allegheny Technologies (ATI)... Paccar (PCAR)... Nordstrom (JWN)... Lockheed Martin (LMT)..."
Apr 10, 2007:
S&P makes changes to Smallcap 600 index
"Standard & Poor's on Tuesday said it is replacing Green Mountain Power Corp. with Symmetry Medical on the SmallCap 600 index... S&P also said Informatica Corp., a software provider, will replace MacDermid Inc. on the SmallCap 600 index... Also, real estate investment trust Kite Realty will replace Hyperion Solutions Corp. on the same index after Friday's close."
Apr 10, 2007:
Three Smallcap Energy Stocks to Consider
"SXR Uranium One... Vaalco Energy (NYSE: EGY)... Northwestern Mineral Ventures..."
Apr 09, 2007:
How To Evaluate A Micro-Cap Company
"Micro-cap equities, which can be measured by the Russell Micro-Cap Index, have significantly outperformed both the S&P 500 large cap and Russell 2000 small cap indexes over the past five years... Micro-caps can provide significant diversification to your portfolio. This asset class typically has very low correlations with other U.S. equity classes (as low as 0.60 versus the S&P 500 for the period 1972-2006), as well as low correlations with international equity and fixed-income securities."
Apr 09, 2007:
Mid-cap stocks beginning to attract big interest
"Mid-cap stocks have come into their own in recent months, outperforming both large- and small-cap shares. "What's driving it? The takeovers," said Chuck McQuaid, chief investment officer of Columbia Wanger Asset Management... 26 companies within the fund were taken over last year... and so far this year takeovers already total 13, "twice the annualized rate.""
Apr 06, 2007:
Entry Level: A style guide for stocks
"Consider their small-cap value portfolio. They calculated that it produced a gain of 22.5 percent, annualized, before transaction costs, over the last eight decades, versus a gain of 13.3 percent, annualized, for a capitalization-weighted index of the entire stock market."
Mar 31, 2007:
Small-cap stocks just won't quit
"Small-capitalization stocks are at it again. As the first quarter of 2007 comes to a close, they are doing the same thing they have done every year since the end of the 1990s. They are outperforming big stocks in the U.S. market. Through the middle of this week, according to Bloomberg data, the Standard Poor's 600 Smallcap Index showed a year-to-date advance of 2.9 percent, including dividends, while the SP 500 Index, dominated by big stocks, struggled to a 0.4 percent gain."
Mar 27, 2007:
Small-Cap ETFs: Don't Count Them Out Just Yet
"ETFs that focus on small-cap stocks have done well this year despite warnings that the trend is shifting to big-caps. Although the big-cap index, S&P 500 outperformed the small-cap index, Russell 2000 the last three quarters of 2006, it might be too soon to count out small-caps. iShares Russell 2000 (AMEX: IWM) is up 2.7% this year, while the SPDR (AMEX: SPY) is up 1.2%."
Mar 22, 2007:
Can small caps still shine?
"Small caps may be performance stars of recent years, but they are not dangerously overvalued relative to big caps: On a price-to-sales basis, for example, the Russell 2000 sells 27 percent below the S&P 500, close to the historical average discount of 33 percent."
Mar 16, 2007:
A Small-Cap's Most Important Financial Metric, Bar None
"Elizabeth Collins at Morningstar.com wrote an insightful piece about her favorite financial ratio -- return on invested capital, or ROIC. ROIC measures how much cash a company receives for each invested dollar. This helps discern how well and efficiently a company profits from its invested assets. She points out that more conventional metrics, like return on assets (ROA) or return on equity (ROE), rely too much on net income, a figure that can easily make an unprofitable company look like a cash cow with a little creative accounting."
Mar 05, 2007:
Surviving a Volatile Small-Cap Market
"In 2002, the Dow lost 16.76% of its value. The NASDAQ, still reeling from the brusting of the tech bubble, posted a 31% loss. The bear market continues through early 2003. The first asset class to recover? You guessed it: small-caps."
Jan 18, 2007:
S&P shuffles SmallCap 600 index
"Standard & Poor's said Thursday Corus Bankshares Inc. will replace Digitas Inc., and Medical Properties Trust Inc. will supplant Open Solutions Inc., in its SmallCap 600 Index."
Jan 02, 2007:
Stick With Small-Caps In 2007
"In short, here is what you should do... Underweight value stocks, overweight growth stocks. Be particularly wary of small-cap value stocks. High growth stocks (i.e., companies with over 30% revenues and earnings growth) such as those in the Oberweis Report are very well positioned to outperform their small-cap value counterparts."
Dec 21, 2006:
Four Stellar Small-Caps
"We looked for small-cap issues that also sported a nice dividend yield. For our purposes, small-cap issues are defined as those with market capitalizations of between $400 million and $1 billion... When we completed our screen, these four names came up: CH Energy Group (CHG)... Harleysville National (HNBC)... Trustco Bank (TRST)... Universal Health Realty Income Trust (UHT)..."
Dec 21, 2006:
Movado Group Hits New High
"Shares of Movado Group Inc. hit a new 52-week high on Thursday after ratings agency Standard & Poor's said it will add the watchmaker to its S&P SmallCap 600 Index... Movado shares rose to a new high of $28.15, before moving back to $28, up $1.92 or 7.4 percent, in midday trading on the New York Stock Exchange."
Dec 20, 2006:
Stock Focus: Cheap Small-Caps
"Security analysts reporting to Thomson IBES expect aggregate earnings gains of 16% for the S&P SmallCap 600 from 2006 to 2007, versus 10% for the S&P 500 and 13% for the S&P MidCap 400..."
Dec 18, 2006:
Japan's Small-Cap Drop May Foretell Trouble for Global Stocks
"In the U.S. and Europe, small-capitalization companies, which as a group have a median market value of about $650 million, are on a path to beat stocks of larger companies this year. The rally outside Japan runs against predictions by investment firms such as GAM Holding AG and Goldman Sachs Group Inc. that shares of so-called large-cap companies would perform the best worldwide, reversing a six-year trend."
Dec 15, 2006:
Avalon Holdings: Smallcap With Promise
"I found this micro-cap through a pretty simple screening a few months back. I asked for profitable companies trading below 80% of book value with a quick ratio over 2... The bargain seemed extra sweet since the company traded at around 50% of stated book value, even while they have essentially no debt..."
Dec 13, 2006:
Claymore ETF Plays On Uncovered Companies
"Sabrient Systems, an equity research firm in Santa Barbara, Calif., created the 150-stock Stealth Index [AMEX: STH]. It hunts for hidden gems from a universe of mostly small or microcap companies. They're covered by two analysts at most. Sabrient then screens for high appreciation potential with a set of growth- and value-oriented quantitative criteria, including cash flow yields, return ratios, earnings acceleration and relative valuation."
Dec 06, 2006:
A 5-Star Small-Cap Stock
"We're raising our fair value estimate for FoxHollow [NASDAQ:FOXH] to $45 per share from $42 on the basis of the Merck [NYSE:MRK] collaboration extension. Given this new agreement, we now expect revenue to grow by 40% compounded annually from 2005 to 2010, rather than the 37% we assumed previously."
Dec 05, 2006:
The triumph of the underdogs
"Small-cap stocks have continued to out-perform larger counterparts... The Russell 2000 index of smaller companies has been roaring ahead. For the year to date, it is up 19.4 per cent - easily beating the Russell 1000 index of larger companies, which is up 14.8 per cent over the same period. This is mostly due to sharp out-performance in the last few weeks."
Dec 05, 2006:
Smallcap Novavax Has Turned a Corner
"Novavax (NASDAQ: NVAX) announced positive results from preliminary trials of its VLP technology, hired an all-star virus researcher and an avian flu expert from the CDC, and attracted top shelf institutional investors like Kleiner Perkins. Another year like that and Novavax could join companies like Crucell (NASDAQ: CRXL) in the top echelon of antiviral health."
Dec 02, 2006:
Five Small Cap Earnings Heroes
"The September quarter should be the fifth consecutive period of at least 20% year-to-year profit growth for small companies, according to Prudential Equity Group. Small companies are expected to grow earnings considerably faster than large companies in 2007."
Nov 29, 2006:
Cascade Bancorp (Oregon) Selected to Join S&P SmallCap 600 Index
"Cascade Bancorp (Nasdaq: CACB) has been selected as a participant in the S&P SmallCap 600 Index and the Davidson 99 Regional Index. Standard & Poor's Index Committee looks at five main criteria: liquidity, ownership, company financials, sector representation and market capitalization. As such, companies must have a market capitalization between $300 million and $1.5 billion, a public float of at least 50% and four consecutive quarters of positive net income on an operating basis."
Oct 22, 2006:
Streetwise: Investing in small-cap companies -- while often profitable -- is not without risk
"Small-cap companies, those companies whose market capitalization -- the number of outstanding shares multiplied by the share price -- is less than a billion dollars, are popular because they are the race cars of Wall Street. They can shift gears and change direction with a minimal effort as they find holes in the pack that others have not seen or cannot fit into... Over the next several weeks we will explore some solid small-cap companies with investment potential."
Oct 22, 2006:
Large-cap stocks are back in favor
"If you have had a pet U.S. stock mutual fund during the last few years, the chances are that it invests in small companies... With the megasize companies of the Dow gathering attention, some analysts say your small-cap fund could begin to look rather tired in the months ahead. Look over your funds now, and make sure the sweet returns of your small-cap fund haven't lulled you into ignoring large caps."
Oct 20, 2006:
Fishing for Microcaps
"If you're trolling the market for a microcap ETF, you're bound to net one of three choices: The PowerShares Zacks Micro Cap Portfolio (AMEX: PZI), First Trust Dow Jones Select MicroCap (AMEX: FDM), and the iShares Russell Microcap (AMEX: IWC)... Microcaps are a part of the market rarely followed by most investors, which means there may be potential for good returns."
Oct 19, 2006:
Smaller is better
"Microcap fund manager Michael Corbett is Stockpicker of the Quarter... The Emerging Opportunities Fund [PREOX] portfolio still owns shares of the three companies Corbett mentioned earlier this year. Century Casinos [CNTY]... Rimage [RIMG]... Force Protection [FRPT]... One of the fund's newer purchases is housing related, at a time when companies in the sector have fallen out of favor. U.S. Home Systems Inc. (USHS) oversees a network of home-improvement contractors..."
Oct 18, 2006:
Fund Seeks Big Gains From Small Caps
"Federated Kaufmann Small Cap Fund... (NASDAQ:FKASX) seeks the stock of small firms that become dominant in their niche or industry. It aims for companies with fast earnings growth... MEMC Electronic Materials (NYSE:WFR), a top holding as of the fund's latest reporting period, is 25% off its May 8 intraday high. But it's still up 65% for the year."
Oct 16, 2006:
Small-Cap Growth Fund Plays It Safe
"The fund manager for BlackRock Small Cap Growth Equity Fund (NASDAQ:PSGIX) spends a lot more time gauging values than looking for growth."
Oct 16, 2006:
Under-the-Radar Small-Cap Fund
"Dreman Contrarian Small Cap Value fund... (symbol DRSVX; 800-247-1014)... invests in out-of-favor companies selling at a discount to their intrinsic value. The duo seek stocks with low price-to-earnings ratios, low price-to-book ratios, and low price-to-cash flow ratios. 'We look for reasonably strong companies on the whole,' Dreman says. His checklist includes looking for companies with strong management teams and those with catalysts that could spur future growth."
Oct 02, 2006:
CKE Restaurants to join S&P SmallCap 600
"CKE Restaurants Inc., operator of Hardee's restaurants, will replace Ryan's Restaurant Group Inc. in [the] S&P SmallCap 600 index... S&P also said Bright Horizons Family Solutions Inc. will replace FileNet Corp. in the index on a date to be announced."
Sep 27, 2006:
Standard & Poor's Announces Changes to U.S. Indices
"Crocs Inc. (NASD: CROX) will replace ResMed in the S&P SmallCap 600 after the close of trading on Friday, September 29"
Sep 27, 2006:
The Hottest Stocks on the Market
"According to a recent article in The Wall Street Journal, small-cap ETFs are quickly becoming the latest, greatest way for hedge funds and pension funds to gain exposure to small companies -- the sector of the market that offers the best returns... Small caps have outperformed larger companies several years in a row now, and this year, the Russell 2000 remains a little more than a percentage point ahead of the S&P 500."
Sep 26, 2006:
DFA Micro Cap Has Built-In Flexibility
"Micro caps offer big potential returns. But volatility comes with the territory in this relatively illiquid area of the market... Is more volatility worth it? Swedroe figures that in the past 10 years, the DFA Micro Cap fund has generated 46% greater returns than the commonly cited Russell 2000 small-cap benchmark. 'I think every investor in the world would trade 46% greater returns for 15% more volatility,' Swedroe said."
Sep 24, 2006:
Trio Tech International: A Microcap with Strong Potential
"Trio Tech International (AMEX: TRT) was the leading gainer on the AMEX on Friday, up about 50% on tremendous volume for the stock... It has over $10 million (over $3 a share) in cash and basically zero debt, which is pretty rare for a microcap company. Therefore, the stock is not subject to a secondary offering near-term and more importantly the Company has cash to put to work through an acquisition or expansion..."
Sep 22, 2006:
Standard & Poor's to Add Allscripts to S&P SmallCap 600
"Shares of Allscripts Healthcare Solutions Inc. [MDRX], a maker of prescription-management software for doctors, rose in premarket trading on Friday, after Standard & Poor's said it will add the company's stock to the S&P SmallCap 600."
Sep 17, 2006:
Left Behind Games (LFBG.OB)
"Left Behind Games... is a Stupid Investment of the Week... Left Behind Games is an interesting microcap stock, a world removed from the penny stocks that get touted in spam e-mails and faxes, but equidistant from the world of better-established small-cap stocks. That's part of what makes Left Behind a tough call, because the story sounds appealing..."
Sep 15, 2006:
Squeeze the Shorts: The Long Case for Pre-Paid Legal Services
"Value Investor Insight carried an interview August 25th with Robotti & Co. manager Bob Robotti (pictured left), whose $500 million fund focuses on small and microcap stocks and has generated an average net return of 17.4% per year since its launch in 1983, versus a 10.3% for the Russell 2000... Mr. Robotti discusses his position in Pre-Paid Legal Services (NYSE: PPD)..."
Sep 14, 2006:
Time to Sell Those Small-Cap ETFs
"Despite its popularity, the Russell 2000 has consistently underperformed the S&P SmallCap 600 since listing in May 2000, and the performance gap is growing... Although companies in the S&P SmallCap index suffered sagging profitability during the recession of 2001-02, as did most companies, firms in the Russell 2000 actually lost money on the whole."
Sep 14, 2006:
Meridian makes SmallCap 600
"Meridian Bioscience... (NASDAQ: VIVO) will be listed on the SmallCap 600 after the close of trading Sept. 18... The SmallCap 600 invests in 600 companies with a market capitalization of between $300 million and $2 billion."
Sep 14, 2006:
Capture the Booming Christian Entertainment Market with This Smallcap
"When the word “controversy” is raised among gaming circles, you’d expect for Take-Two Interactive's (NASDAQ: TTWO) subsidiary RockStar Games to take center stage, not Left Behind [OTC BB: LFBG.OB]. But sure enough..."
Sep 13, 2006:
Smallcap eGain Shows Promise in Customer Service Software Sector
"True, eGain [OTC BB: EGAN.OB] is a very small stock, with a market cap of only $24.5 million. Then again, management provided guidance for the next 12 months with revenues ranging from $27 million to $30 million. In other words, the company’s revenues are likely to exceed its market cap."
Sep 12, 2006:
SmallCap Sentinel: Oil Prices Fuel Discovery, Attract SmallCap Investors
""Despite any short term price roller coaster, oil continues to trade at exorbitant rates with exploration and production racing to meet demand,"" said SmallCap Sentinel analyst D.R. Clark. "...The lofty prices for barrels of oil... signal small cap investors to look for companies endeavoring to find more oil.""
Sep 12, 2006:
Religious game company may not have even a prayer
"In the case of Left Behind Games, a California company about to release a video game based on a popular faith-related book series, what's being sold is a Stupid Investment of the Week. Left Behind Games is an interesting microcap stock, a world removed from the penny stocks that get touted in spam e-mails and faxes, but equidistant from the world of better-established small-cap stocks."
Sep 11, 2006:
Five Truly Cheap Stocks
"Academic research suggests value-related metrics work well with small-cap and midcap stocks... history suggests that holding a diversified basket of small-cap and midcap value stocks is a winning strategy..."
Sep 10, 2006:
Micro-cap stocks offer investors hidden bargains
"A growing number of investors and money managers tracked by Russell are thinking small. Really small. The reason: They see potentially rewarding investment opportunities in micro-caps, which historically have shown average annual growth rates greater than those of small-cap and large-cap stocks."
Sep 08, 2006:
Small public companies win delay on Sarbanes-Oxley
"A recent postponement by the Securities and Exchange Commission means that public businesses with less than $75 million in market capitalization have until at least Dec. 15, 2007 -- rather than July 15, 2007 -- to start complying with Section 404."
Aug 28, 2006:
Long-Term Approach Helps Alesco's Returns
"Alesco tilted toward mid- and small-cap names. In its most aggressive accounts, it had 45% in small-cap stocks. "So the small-cap tilt with some international exposure really paid off in those years," said Gould."
Aug 23, 2006:
Seven With Small-Cap Value, ETF-Style
"Because bull markets are more prevalent,... conditions favor small over large more often than not... [B]ecause expansion is more prevalent than recession over long periods of time, this means value tends to do better. By combining small-cap and value you get the best-performing market segment."
Aug 21, 2006:
Large-Cap Stocks, Laggards for Seven Years, Set to Rebound
"85 percent of 209 fund managers overseeing a combined $637 billion surveyed this month by Merrill Lynch & Co. predicted that large-cap stocks would outperform small-caps in the next 12 months. In a mid-July poll by Goldman, 74 percent of respondents said large caps would fare better."
Aug 15, 2006:
Overheard on the Trading Floor... Small-Cap Concerns
"I'm getting concerned about small-cap performance... blowups seemed to be far outnumbering melt-ups in recent months, particularly among heavily shorted momentum names."
Aug 07, 2006:
The Smallest Companies Out There
"We rank all the companies and separate the part below the bottom eighth decile. Today that number is about $500 million or less and that’s where we start with our Micro Cap fund... We truly believe that by investing in the smallest companies you get the biggest return for your money, which is obvious if you read Ibbotson long-term data"
Aug 07, 2006:
10 Fast-Growing Small-Cap Stocks
"Large-cap stocks have taken the baton from small caps in recent weeks, but there's still strong earnings growth in the small-cap arena as this week's list reveals."
Aug 06, 2006:
Share stylist
"Pyle, a managing director at investment firm U.S. Trust and manager of its Excelsior Small Cap Fund (UMLCX), is a growth-stock buyer in value investors' clothing."
Aug 03, 2006:
Large-Cap Dominance Seen Until Late In Year
"Are big-cap stocks finally starting to make their presence felt after years in which small-cap stocks got all the attention?"
Aug 03, 2006:
End Of The Streak For Small-Caps
"The long-awaited shift of relative strength from small-cap stocks back to large-cap stocks may finally be here... The last time large-cap stocks provided such clear leadership, it lasted five years from early 1994 through April 8, 1999. This suggests we could be at the start of a long-term trend."
Aug 02, 2006:
Too Good to Be True
"If small caps are good, and value is good, then microcaps and deeper value should be better, right?"
Aug 01, 2006:
Perritt Micro Cap Works Down Cash
"We're finding a lot of strong niche businesses at more attractive valuations since the market started correcting."
Aug 01, 2006:
Column: Finding the needle in a haystack
"Funds that beat the S&P 500 had a few things in common... Their portfolio turnover averaged 30 percent, much lower than the industry average of nearly 110 percent. The funds shared a 'value' investing style, in which the fund managers buy undervalued stocks."
Aug 01, 2006:
Small cap stocks can have big growth potential
"While blue chip stocks usually offer solid steadiness, some of the best opportunities for investment growth often are with small cap stocks. Small cap stocks, companies with a market capitalization of $2 billion or less, sometimes grow up to become big cap success stories. But, as with many investment choices, they also come with some risk."
Jul 30, 2006:
Investing Doldrums
"A recent survey... found that professional investors are bullish on large-cap stocks, shares of foreign blue-chip companies in developed countries, and cash. They are decidedly bearish on emerging markets, equities, small-cap stocks, and corporate bonds."
Jul 27, 2006:
The Salamone Stance: Is it Time to Buy?
"If it is indeed time to buy, rest assured that leadership continues to come from the small- and mid-cap groups, despite what are apparently healthy valuations in the large-cap space."
Jul 27, 2006:
The SmartMoney.com Small-Cap Growth Screen
"The Small-Cap Growth Recipe... Market cap below $1 billion... Three-year sales growth greater than 20% a year... Three-year earnings growth greater than 20% a year..."
Jul 26, 2006:
Buy Companies With Strong Fundamentals and Wait Out The Storm
"From my perspective, we are currently in a bear market, especially for the micro-cap, 'junk' stocks, which I generally recommend for actively managed portfolios."
Jul 26, 2006:
7 GREAT investment tips for BIG returns
"Remember, to have a well-balanced equity portfolio, it is important to have the right level of exposure to different segments of the equity market like large cap, mid-cap and small cap."
Jul 20, 2006:
Yes, there are small value-priced stocks; here's how to find them
"Statistical studies of the stock market have shown that small companies trounce large companies and 'value-priced' shares tend to beat more expensive 'growth stocks.'"
Jul 18, 2006:
Money 101
"SMALL-CAP ($340.6 mil. to $1.7 bil.) Many small firms offer big investing potential because they address young, fast-growing industries. But their limited histories can make them volatile. Still, small-caps offer strong diversification benefits."
Jul 17, 2006:
Despite recent plunge, don't count out small-cap stocks
"From early May through mid-June, a popular U.S. index of small stocks tumbled almost twice as hard as its big-stock counterpart. The Russell 2000 Index lost more than 12 percent while the Russell 1000 Index dropped 6.6 percent."
Jul 17, 2006:
Let's Find the Next 60-Bagger
"Small-cap stocks sure have bounced around this year. The Russell 2000, the leading index for small-cap stocks, is down 13% from the all-time highs it hit in the spring. Should you book profits now, following its multiyear run-up, but afraid of the recent downturn?"
Jul 15, 2006:
Your Funds Conference offers trove of investment wisdom
"Large-cap stocks — particularly for value-oriented investors — are about as cheap as they have been in a long time, having lagged small-cap stocks for six to eight years (depending on which benchmarks you prefer). Stellar fund managers like Bill Nygren of the Oakmark fund or Bill Miller of Legg Mason Value Trust have been migrating toward large-cap names."
Jul 15, 2006:
Small-stocks slump won't last forever
"If most things in finance sooner or later revert to their mean, big stocks must be primed and ready to take over the spotlight, right? I'll be the first to say it's hard to disagree with that argument. That doesn't mean, though, that one must swallow it whole, selling every small-stock fund one owns and going 100 percent into big stocks."
Jul 12, 2006:
Big Small-Cap Funds
"If your small-cap mutual fund has total assets on the hefty side, you might think of that as a red flag."
Jul 09, 2006:
Small-cap fund falters after portfolio change
"Oppenheimer Funds Inc.'s top-performing small-company stock mutual fund is stumbling after manager John Damian started buying shares of bigger companies a year ago... [however] the decision to add midsize company stocks helped the fund during the last quarter as small-company stocks underperformed, said David Kathman, an analyst at Morningstar."
Jul 07, 2006:
Small-Cap Firecrackers
"...In honor of July 4th, investment bank Lazard Capital Markets picked four firecrackers to add sparkle to a portfolio. Three of them fall within our universe of small-capitalization stocks: CollaGenex Pharmaceuticals (CGPI), Deckers Outdoor (DECK) and Radvision (RVSN)."
Jul 06, 2006:
Standard & Poor's Announces Changes to U.S. Indices
"Palomar Medical Technologies Inc. (NASD: PMTI) will replace Laserscope (NASD: LSCP) in the S&P SmallCap 600 after the close of trading on Wednesday, July 12."
Jul 06, 2006:
Risky World of Penny Stocks
"So-called penny stocks are generally those that sell for less than $5, and they are traded on exchanges such as NASDAQ or the AMEX, as well as over the counter, with prices quoted on the OTC bulletin board or in the Pink Sheets. In the latter case, companies are not required to provide audited financial statements and are not regulated by the SEC."
Jul 05, 2006:
Second-Quarter Value Creators and Destroyers
"Looking at the chart above we note that the larger-capitalization stocks performed much better than the average small-cap stock. While 67% of small-cap stocks lost value in the second quarter, only 57% of large-cap stocks and 48% of mega-cap stocks declined... After several years of out-performance, smaller-cap stocks are finally pulling back."
Jul 05, 2006:
Mutual funds hit a slump
"Diversified U.S. stock funds averaged a 3.57 percent negative return for the quarter, according to mutual fund tracker Lipper. The weakness was concentrated in growth funds and small- and mid-cap funds, often perceived as riskier investments when the economy is slowing. Aggressive small-cap stocks had the worst results among U.S. funds, posting a negative return of 8.22 percent. Mid-cap growth funds also saw a 6.51 percent negative return, while large-cap growth stocks had a 5.01 percent negative return."
Jul 04, 2006:
Very tough pickings during 2nd quarter
"'A lot of fluff is coming out of the market,' said David Herro of the Oakmark International Fund, referring to small-cap stocks, commodities and emerging-market investments that fell hard. 'Some of it is going to cash. Some of it is going to quality businesses that have been ignored for years.'"
Jul 02, 2006:
When Fed rate rises, small caps struggle
"Over the past five years, U.S. stock market investors have shown little love for shares of larger, well-known companies. That's beginning to change. So-called small-cap companies — a category with market values less than $2 billion... — took a bigger hit during the volatile second-quarter market than large-cap companies... 'Small caps typically struggle more with an environment where the Fed is hostile'..."
Jun 30, 2006:
Large-cap growth stocks stronger in second quarter
"Stocks in general hit a peak around May 10, followed by a sharp selloff and continued volatility through the rest of the quarter. Part of that roller-coaster ride can be attributed to investor fears about rising interest rates, the weakening housing market and higher oil prices. That may prompt a fresh look at large-cap stocks, whose companies often weather economic slowdowns better than small- and mid-caps because they are comparatively more mature and have a more stable earnings history."
Jun 29, 2006:
Pure Small Cap Growth
"Historically, small cap stocks have delivered greater returns over time than large cap stocks, but with greater volatility. To get the benefit of these greater returns, you need to have a long enough holding period in order to withstand the high volatility that can occur over shorter time horizons."
Jun 26, 2006:
More Sectors Wake From Dead
"Certain elements in the small-cap universe are catching my attention. In particular, many small-tech stocks that outperformed this quarter are setting up for a run to new highs."
Jun 26, 2006:
Fund Times: Small-Cap Analyst Pick Reopens to New Investment
"Manager Charlie Dreifus reports that many of the high-quality firms that he likes have lagged during the small-cap market's multiyear upward climb and also sold off in May and June 2006. So, more stocks are coming through his valuation screens, which is the first step in his process."
Jun 26, 2006:
Top-Rated Small Caps
"Now is a great time to do research so you'll be ready when things turn around. The main idea: look for stocks that are holding their own despite the stormy weather."
Jun 24, 2006:
Manager of small-cap fund puts his trust in research
"He's focused on one of the highest-risk segments of the market: so-called small-cap growth stocks. These are small companies with stock market values of $100 million to $2.5 billion – tiny compared with well-known corporate giants such as General Electric or Microsoft, which have stock market values in the hundreds of billions of dollars."
Jun 24, 2006:
The Hottest Stocks on the Market
"Small-cap ETFs are fast becoming the latest, greatest way for hedge funds and pension funds to gain exposure to small companies -- still among the hottest sectors in the market, despite its recent slide. Indeed, small caps have outperformed larger companies several years in a row..."
Jun 24, 2006:
Large-Caps Not Always Best
"'The future of the market is you are probably going to see those large-caps which haven't done well continue to not to do well,' Hennessey predicts. 'And you are probably going to see the smaller companies do better.' But he warns that small-cap investments can be extremely risky."
Jun 22, 2006:
Microcaps: Not for the Faint of Heart
"The designation microcap usually refers to companies whose market capitalization is less than $500 million. Investors in the category, which are growing in number, argue that historically the shares of small companies have outperformed their larger competitors for one simple reason: They grow faster. That's the good news. The bad news is that small-cap stocks are thinly traded and volatile."
Jun 21, 2006:
Bargains Abound in Small-Caps
"We want to make it clear that we are not calling a bottom in the market. However, we know from experience that the best stocks to own in a market rebound are low-priced, and the recent selloff has created a great opportunity for investors with six- to 12-month time horizons."
Jun 20, 2006:
A Small Cap for the Long Run
"One of the traits Lynch looked for in companies -- and something we look for at Hidden Gems -- is that they are in a line of work that's boring or distasteful. You see, the stock market is an enormous auction, and speculators bid up shiny new tech companies -- not companies that build funeral homes or handle environmental waste."
Jun 19, 2006:
Riding out the stock market storm
"Investors may also want to think big, as large-cap firms often are better positioned to handle wide market swings than small stocks, analysts said. The S&P 500 has shed 5.6 percent over the last six weeks, but the Russell 2000 index of small-cap companies has tumbled 11.2 percent over the same period."
Jun 18, 2006:
Advisers bullish on U.S. market
"Green said he wasn't predicting that small- and mid-cap stocks would outperform, but "they will hang in there" despite widespread pessimism that they will not do especially well. The wave of mergers and acquisitions he predicts should help them."
Jun 13, 2006:
Finding Rewards With Small-Cap Stocks
"All but three of the Top 10 stock market performers - measured by total shareholder return, which combines stock price appreciation with reinvested dividends - had market capitalizations under $500 million. They each reported one-year returns topping 90 percent."
Jun 12, 2006:
The best mutual funds: DFA or Vanguard?
"What investors need in the long run is diversification in addition to the ever-popular large-cap growth stocks. For reasons detailed at length in “The ultimate buy-and-hold strategy,” investors need to add stocks of smaller companies and of value companies. Over long periods of time, small companies have outperformed large ones, and value companies have outperformed growth companies."
Jun 10, 2006:
Is the reign of small-cap funds over?
"If your first reaction is to clear your portfolio of small-cap funds, analysts and advisers preach patience. Spreading holdings among companies with big and small market capitalization — just like spreading risk between domestic and international markets — helps you diversify and balance your portfolio's risk, they say."
Jun 07, 2006:
Big Is Taking Another Stab At Small
"Small-cap managers have fallen behind their larger-cap brethren again. In Q2 heading into Wednesday, the average large-cap stock fund tracked by Morningstar lost 3.08% vs. small caps' 6.03% fall. If large-cap managers can hang on through June, it would mean they've outperformed in five of the past nine quarters."
Jun 06, 2006:
Kendle to join SmallCap 600
"Kendle (NASDAQ: KNDL) will be added at an undetermined date, and will replace SBS Technology (NASDAQ: SBSE), which is being acquired by a unit of General Electric Co. (NYSE: GE). Florida-based PetMed Express Inc. (NASDAQ: PETS) will also join the index, replacing Thomas Nelson (NYSE: TNM), which is also being acquired."
Jun 06, 2006:
Is the reign of small-cap funds over?
"If your first reaction is to clear your portfolio of small-cap funds, analysts and advisers preach patience. Spreading holdings among companies with big and small market capitalization... helps you diversify and balance your portfolio's risk, they say. That's also because, in part, analysts are also hesitant to declare the end of small-cap funds' dominance. Some have been calling for the demise of small caps for over a year, only to see them continue to climb."
Jun 06, 2006:
Small caps undone by rates, earnings concerns
"Small-cap stock prices are being pummeled by an unfortunate combination of uncertainty about rates and second-quarter earnings and the fact that valuations in this sector are rich... Steve DeSanctis, director of small-cap analysis at Prudential Equity Group, said the weakness in the sector is likely to persist until the Federal Open Monetary Committee's decision on interest rates on June 29."
Jun 05, 2006:
The New Calculus of Designer ETFs
"The dearth of good funds focusing on small-company stocks and open to new investors enhances the appeal of First Trust Dow Jones Select MicroCap Index (FDM). Introduced last September, this ETF invests in the smallest of the small -- so-called microcaps. The index it tracks puts a value spin on the stocks it includes by excluding the 20% of eligible microcaps with the highest price-earnings and price-sales ratios."
Jun 04, 2006:
Smallest stocks have made biggest gains
"Bukowski defines microcap stocks as those with market capitalizations of $500 million or less... Microcaps, as measured by the Russell Microcap Index, had an average annual total return of 12.39% for the five years ended May 31. By comparison, the S&P 500 index had an average annual return of 1.96%, and the Russell 2000 - a small-cap index - had a return of 9.10% for the same period."
Jun 01, 2006:
Sell-Off Takes Small Bites Out Of Fund
"The recent sell-off has been particularly brutal to small-cap stocks. Just look at the $12.8 billion Vanguard Small Cap Index Fund (NAESX). Since its May 6 peak, it had lost about 6% heading into Thursday. But small caps remain on a multiyear roll. In the past 12 months, the index fund had gained 17.57% vs. 18.45% for small-cap blend funds tracked by Morningstar and 8.83% for the S&P 500."
May 31, 2006:
The Case Against Small Caps
"But that's not why small-cap investors get pummeled. It's more insidious than that. It's because they don't invest -- they speculate on stock tips and super-high-risk story stocks with low-quality (or worse, no) real earnings... Small-cap investors ignore fundamentals. At least, too many do... The trick, of course, is shunning "the next big thing" in favor of small businesses with strong fundamentals at good prices -- in other words, small-cap value."
May 31, 2006:
Small Caps Seen As Preferable Over The Long Term
"Despite recent weakness in the small-cap sector, a new study by the Schwab Center for Investment Research concludes that investors able to hold assets for 20 years or more would get their best returns from small-cap stocks. The Russell 2000 (RUT) index, the small-cap barometer, has endured losses this month... The weakness seen in May has sparked debate as to whether the falls represent a temporary correction for the small-cap sector or mark the beginning of a sustained downward trend."
May 30, 2006:
Little Stocks That Rock
"For the 12 months ended May 1, 2006, the Russell 2000 index of small-cap stocks returned 31.5%, compared with 14.4% for the Standard & Poor's 500 index of large-company stocks. The longer view is even more impressive: Since March 2000 (the official start of this rally, when small caps bottomed out relative to their large-cap peers), the Russell 2000 index has posted an average annual return of 7.3%, vs. -0.6% for the S&P 500.""
May 05, 2006:
Hot Young Things
"The two funds that topped our screen come from the small-cap powerhouse Royce Funds... Royce Value Plus seeks out small-, mid- and microcap companies that trade significantly below their estimated current worth. The Royce Value fund, on the other hand, allows its small-cap winners to ride into the midcap category..."
Feb 27, 2006:
Small-Cap Updates (IGII, HQSM, PTSC, NMKT)
"IBSG International (ticker: IGII)... HQ Sustainable Maritime (ticker: HQSM)... Patriot Scientific (ticker: PTSC)... NewMarket Technology (ticker: NMKT)..."
Jun 22, 2000:
Multi-Color Leads Top-Rated Small-Caps
"Multi-Color Corporation (LABL) tops the list... Multi-Color displays significantly increased net income and notable stock price appreciation with good potential for further growth. The market expects EPS growth in Multi-Color's fiscal 2007. These strengths outweigh the company's low profit margins."
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