Small Cap Investment Report
The best scoring small caps from one year ago (12/27/2012) have outperformed the R2K by 911 bps over the past year, with no turnover. The best performers have been RAD up 263%, JAZZ up 136%, RRGB, up 121%, TREX up 120% and TYL up 117%.
View or Print version: http://gallery.mailchimp.com/99d224f3954c728b48e754ddb/files/SMALL_CAP_Best_Worst.12.pdf
- The best small cap sector is industrial goods.
- The top scoring small cap industry is industrial metals & minerals.
Important! Scores have shifted to reflect Q1 seasonality. The average small cap company score is 66.19, above the four week moving average score of 64.52. The average small cap is trading 9.95% above its 200 dma, has 7.24 days to cover short, and is expected to see EPS growth of 34% next year.
Industrials, services, financials, and consumer score above average. Basics, utilities, technology, and healthcare score below average.
SMALL CAP | 12/26/2013 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
Mercantile Bank | MBWM | FINANCIALS | REGIONAL BANKS | 110 | 78.75 |
Twin Disc | TWIN | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 110 | 96.25 |
Agilysys Inc | AGYS | SERVICES | ELECTRONICS WHOLESALE | 105 | 77.5 |
Century Aluminum | CENX | BASIC MATERIALS | ALUMINUM | 105 | 73.75 |
Hanger Orthopedic | HGR | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 105 | 76.25 |
Wintrust Fin'l | WTFC | FINANCIALS | REGIONAL BANKS | 105 | 87.5 |
Advisory Board Co | ABCO | SERVICES | RESEARCH SERVICES | 100 | 86.25 |
Affymetrix Inc | AFFX | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 100 | 82.5 |
Ann Taylor | ANN | SERVICES | APPAREL STORES | 100 | 58.75 |
Infospace | BCOR | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 100 | 92.5 |
Belden CDT | BDC | INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 100 | 100 |
Builders FirstSource | BLDR | SERVICES | HOME IMPROVEMENT STORES | 100 | 60 |
C B R L Group | CBRL | SERVICES | RESTAURANTS | 100 | 90 |
Cardinal Fin'l | CFNL | FINANCIALS | REGIONAL BANKS | 100 | 77.5 |
Chemed Inc | CHE | HEALTHCARE | HOME HEALTH CARE | 100 | 80 |
Cali. Water Svcs. | CWT | UTILITIES | WATER UTILITIES | 100 | 75 |
Domino's Pizza Inc | DPZ | SERVICES | FOOD WHOLESALE | 100 | 93.75 |
First Fin'l Bankshares | FFIN | FINANCIALS | REGIONAL BANKS | 100 | 97.5 |
Greenbrier Companies Inc | GBX | SERVICES | RAILROADS | 100 | 82.5 |
Genesco Inc. | GCO | SERVICES | APPAREL STORES | 100 | 73.75 |
Littelfuse | LFUS | INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 100 | 85 |
PLX Technology Inc. | PLXT | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 100 | 76.25 |
Perceptron Inc | PRCP | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 100 | 51.25 |
Red Robin Gourmet Burgers Inc | RRGB | SERVICES | RESTAURANTS | 100 | 85 |
Sun Hydraulics Inc | SNHY | INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 100 | 86.25 |
Dealertrack Hldgs Inc | TRAK | TECHNOLOGY | APPLICATION SOFTWARE | 100 | 86.25 |
Amerco Inc | UHAL | SERVICES | RENTAL & LEASING SERVICES | 100 | 97.5 |
Encore Wire | WIRE | BASIC MATERIALS | COPPER | 100 | 93.75 |
Olympic Steel Inc | ZEUS | BASIC MATERIALS | STEEL & IRON | 100 | 78.75 |
Transaction Sys Architects | ACIW | TECHNOLOGY | TECHINICAL & SYSTEM SOFTWARE | 95 | 92.5 |
Align Tech | ALGN | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 95 | 71.25 |
Bon Ton Stores | BONT | SERVICES | DEPARTMENT STORES | 95 | 86.25 |
Dynamic Materials | BOOM | BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 95 | 82.5 |
Calgon Carbon Corp. | CCC | INDUSTRIAL GOODS | POLLUTION & TREATMENT CONTROLS | 95 | 96.25 |
C D I Corp | CDI | SERVICES | STAFFING & OUTSOURCING SERVICES | 95 | 78.75 |
Coherent Inc | COHR | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 95 | 88.75 |
Carrizo Oil and Gas Inc | CRZO | BASIC MATERIALS | INDEPENDENT GAS & OIL | 95 | 92.5 |
Dixie Group | DXYN | CONSUMER GOODS | TEXTILES | 95 | 65 |
Finish Line Inc | FINL | SERVICES | APPAREL STORES | 95 | 83.75 |
Hub Group Inc | HUBG | SERVICES | AIR DELIVERY & FREIGHT SERVICES | 95 | 75 |
MarineMax, Inc. | HZO | SERVICES | SPECIALTY RETAIL, OTHER | 95 | 96.25 |
Intevac Inc | IVAC | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 95 | 81.25 |
Middleby Corp | MIDD | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 95 | 98.75 |
Northwest Bancorp Inc | NWBI | FINANCIALS | SAVINGS & LOANS | 95 | 96.25 |
Sturm Ruger & Co. | RGR | CONSUMER GOODS | SPORTING GOODS | 95 | 76.25 |
Saba Software | SABA | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 95 | 81.25 |
Silicom LTD | SILC | TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 95 | 92.5 |
S S & C Tech | SSNC | TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 95 | 92.5 |
State Auto Financial Corp | STFC | FINANCIALS | PROPERTY & CASUALITY INSURANCE | 95 | 80 |
Universal Electronics Inc | UEIC | CONSUMER GOODS | ELECTRONIC EQUIPMENT | 95 | 92.5 |
WORST | |||||
Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 10 | 11.25 |
Affymax | AFFY | HEALTHCARE | BIOTECHNOLOGY | 15 | 23.75 |
Sigma Designs | SIGM | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 15 | 32.5 |
Coeur D Alene | CDE | BASIC MATERIALS | SILVER | 20 | 28.75 |
U S Global Investors, Inc. | GROW | FINANCIALS | ASSET MANAGEMENT | 20 | 26.25 |
S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 20 | 16.25 |
UT Starcom | UTSI | TECHNOLOGY | WIRELESS COMMUNICATIONS | 20 | 22.5 |
Yellow Roadway Corporation | YRCWD | SERVICES | TRUCKING | 20 | 41.25 |
Commentary:
The best small cap industry heading into 2014 is industrial metals & minerals (BOOM, RTI). Sporting goods (RGR, SWHC) offer upside too. Farm & construction machinery (ASTE, CMCO) benefit from potential recovery in Europe and U.S. commercial construction activity. Regional banks (MBWM, WTFC, FFIN, CFNL) offer an opportunity as banks put excess deposits to work to boost loan portfolios. Technical & system software (ACIW, TYL) also score highly.
In basics, buy industrial metals & minerals, steel & iron (ZEUS, HSC), and synthetics (POL, MTX). In consumer, the best scoring baskets include sporting goods, business equipment (HNI), and processed & packaged goods (BDBD, HAIN). The top finance industries are regional banks, P&C insurers (STFC, GLRE), and S&Ls (NWBI, OCN, BANR). In healthcare, only home healthcare (CHE, GTIV) and specialized health services (HGR) score above average. In industrials, buy farm & construction machinery, metal fabrication (MATW), and diversified machinery (TWIN, MIDD, BGG). In services, focus on railroads (GBX), research services (ABCO, FORR), and staffing (CDI, KFRC, BBSI). The top technology groups include technical & system software, scientific & technical instruments (PRCP, AFFX, COHR, NEWP, NANO), and business software (SSNC, VRNT, PRFT, PEGA, NTCT, CSGS).
SMALL CAP INDUSTRY SCORE | 12/26/2013 | |
Sector | INDUSTRY | Score |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 90.00 |
BASIC MATERIALS | STEEL & IRON | 75.83 |
BASIC MATERIALS | SYNTHETICS | 72.50 |
BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 70.00 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 57.86 |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 48.33 |
CONSUMER GOODS | SPORTING GOODS | 86.25 |
CONSUMER GOODS | BUSINESS EQUIPMENT | 72.50 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 71.00 |
CONSUMER GOODS | HOME FURNISHING & FIXTURES | 68.33 |
CONSUMER GOODS | TEXTILES | 66.43 |
CONSUMER GOODS | AUTO PARTS | 62.00 |
CONSUMER GOODS | PERSONAL PRODUCTS | 60.00 |
CONSUMER GOODS | FARM PRODUCTS | 55.00 |
FINANCIALS | REGIONAL BANKS | 85.00 |
FINANCIALS | PROPERTY & CASUALITY INSURANCE | 74.00 |
FINANCIALS | SAVINGS & LOANS | 68.50 |
FINANCIALS | INVESTMENT BROKERAGE | 68.33 |
FINANCIALS | REITS | 51.67 |
FINANCIALS | CREDIT SERVICES | 46.67 |
HEALTHCARE | HOME HEALTH CARE | 81.25 |
HEALTHCARE | SPECIALIZED HEALTH SERVICES | 71.67 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 67.14 |
HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 66.94 |
HEALTHCARE | DRUG RELATED PRODUCTS | 61.67 |
HEALTHCARE | DRUG MANUFACTURERS | 56.67 |
HEALTHCARE | DRUGS-GENERIC | 55.00 |
HEALTHCARE | BIOTECHNOLOGY | 53.95 |
INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 85.00 |
INDUSTRIAL GOODS | METAL FABRICATION | 82.50 |
INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 82.00 |
INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 81.25 |
INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 73.75 |
INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 71.25 |
INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 68.75 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 66.00 |
INDUSTRIAL GOODS | HEAVY CONSTRUCTION | 56.00 |
SERVICES | RAILROADS | 81.67 |
SERVICES | RESEARCH SERVICES | 81.25 |
SERVICES | STAFFING & OUTSOURCING SERVICES | 81.00 |
SERVICES | RESTAURANTS | 78.00 |
SERVICES | CONSUMER SERVICES | 77.50 |
SERVICES | LODGING | 77.50 |
SERVICES | APPAREL STORES | 75.94 |
SERVICES | MANAGEMENT SERVICES | 75.00 |
SERVICES | BUSINESS SERVICES | 70.00 |
SERVICES | MARKETING SERVICES | 70.00 |
SERVICES | EDUCATION & TRAINING SERV | 65.00 |
SERVICES | RESORTS AND CASINOS | 61.67 |
SERVICES | SPECIALTY RETAIL, OTHER | 61.43 |
SERVICES | TRUCKING | 58.00 |
SERVICES | BROADCASTING | 55.00 |
SERVICES | CATALOG & MAIL ORDER HOUSES | 55.00 |
TECHNOLOGY | TECHINICAL & SYSTEM SOFTWARE | 83.75 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 80.50 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 72.92 |
TECHNOLOGY | DIVERSIFIED ELECTRONICS | 72.50 |
TECHNOLOGY | APPLICATION SOFTWARE | 68.57 |
TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 66.43 |
TECHNOLOGY | COMPUTER PERIPHERALS | 65.00 |
TECHNOLOGY | INTERNET INFORMATION PROVIDER | 65.00 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 62.50 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 62.14 |
TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 61.25 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 53.33 |
TECHNOLOGY | PRINTED CIRCUIT BOARDS | 53.33 |
TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 51.67 |
TECHNOLOGY | MULTIMEDIA & GRAPHICS SOFTWARE | 50.00 |
TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 50.00 |
TECHNOLOGY | WIRELESS COMMUNICATIONS | 33.33 |
TECHNOLOGY | INTERNET SERVICE PROVIDERS | 26.67 |
None.