Small Cap Report: Best And Worst
The highest scoring names in small cap from 1 year ago (4/11/2013) returned 831 bps more than the Russell 2000. The best performers have been CRZO up 97%, GBX up 93%, HOMB up 80%, CGNX up 78%, CIR up 76%, and MPWR up 64%.
- Utilities is the top scoring small cap sector.
- Trucking is the best industry.
The average small cap score is 47.75 this week, below the four week moving average score of 51.67. The average small cap stock is trading 23.9% below its 52 week high, 0.36% above its 200 dma, and has 7.05 days to cover short.
Utilties, consumer goods, and industrial goods score best. Basics, services, financials, and healthcare score in line with the average small cap universe score. Technology scores below average and remains industry and stock specific.
| SMALL CAP | 4/10/2014 | 4 Week MA | |||
| Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
| BEST | |||||
| Smith & Wesson Hldg. | SWHC | CONSUMER GOODS | SPORTING GOODS | 100 | 85 |
| ExamWorks | EXAM | SERVICES | BUSINESS SERVICES | 95 | 90 |
| Greatbatch Inc. | GB | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 95 | 77.5 |
| Vascular Solutions | VASC | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 95 | 91.25 |
| Arthrocare Corp. | ARTC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 90 | 77.5 |
| Boulder Brands | BDBD | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 90 | 87.5 |
| Diodes Inc | DIOD | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 90 | 92.5 |
| Federal Signal | FSS | CONSUMER GOODS | TRUCKS & OTHER VEHICLES | 90 | 82.5 |
| Medifast | MED | SERVICES | SPECIALTY RETAIL, OTHER | 90 | 68.75 |
| Alimera Sciences | ALIM | HEALTHCARE | DRUG MANUFACTURERS | 85 | 82.5 |
| Amsurg | AMSG | HEALTHCARE | HOSPITALS | 85 | 60 |
| Anaren Inc. | ANEN | TECHNOLOGY | WIRELESS COMMUNICATIONS | 85 | 65 |
| BioSpecifics | BSTC | HEALTHCARE | BIOTECHNOLOGY | 85 | 78.75 |
| Commtech Telecom | CMTL | TECHNOLOGY | COMMUNICATION EQUIPMENT | 85 | 75 |
| Cavco Industries | CVCO | INDUSTRIAL GOODS | MANUFACTURED HOUSING | 85 | 72.5 |
| American Healthways | HWAY | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 85 | 65 |
| Merrimack Pharm | MACK | HEALTHCARE | BIOTECHNOLOGY | 85 | 65 |
| Titan Int'l | TWI | CONSUMER GOODS | AUTO PARTS | 85 | 73.75 |
| Adtran | ADTN | TECHNOLOGY | COMMUNICATION EQUIPMENT | 80 | 68.75 |
| Albany Molecular | AMRI | HEALTHCARE | BIOTECHNOLOGY | 80 | 75 |
| Diamond Foods, Inc. | DMND | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 80 | 76.25 |
| Dxp Enterprises Inc | DXPE | SERVICES | INDUSTRIAL EQUIPMENT WHOLESALE | 80 | 76.25 |
| EPL Oil & Gas | EPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 80 | 73.75 |
| Jakks Pacific Inc. | JAKK | CONSUMER GOODS | TOYS & GAMES | 80 | 72.5 |
| Monolithic Power Sys | MPWR | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 80 | 80 |
| Meritor | MTOR | CONSUMER GOODS | AUTO PARTS | 80 | 71.25 |
| Nautilus Group | NLS | CONSUMER GOODS | SPORTING GOODS | 80 | 70 |
| Protein Design | PDLI | HEALTHCARE | BIOTECHNOLOGY | 80 | 70 |
| Penford Corp | PENX | BASIC MATERIALS | SPECIALTY CHEMICALS | 80 | 83.75 |
| PharMerica | PMC | SERVICES | DRUG STORES | 80 | 77.5 |
| S C S Transport | SAIA | SERVICES | TRUCKING | 80 | 75 |
| Silicon Motion Tech ADS | SIMO | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 80 | 68.75 |
| The Spectranetics Corp | SPNC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 80 | 70 |
| WORST | |||||
| CytRX | CYTR | HEALTHCARE | BIOTECHNOLOGY | 10 | 30 |
| Mannatech | MTEX | HEALTHCARE | DRUG RELATED PRODUCTS | 10 | 30 |
| Novavax | NVAX | HEALTHCARE | BIOTECHNOLOGY | 10 | 32.5 |
| Progenics Pharmaceuticals Inc | PGNX | HEALTHCARE | BIOTECHNOLOGY | 10 | 20 |
| Almost Family | AFAM | HEALTHCARE | HOME HEALTH CARE | 15 | 26.25 |
| Alvarion LTD | ALVR | TECHNOLOGY | WIRELESS COMMUNICATIONS | 15 | 22.5 |
| Alphatec Holdings | ATEC | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 15 | 27.5 |
| Aviat Networks | AVNW | TECHNOLOGY | COMMUNICATION EQUIPMENT | 15 | 22.5 |
| Blout International | BLT | CONSUMER GOODS | HOUSEWARES & ACCESSORIES | 15 | 26.25 |
| Cross Country Healthcare | CCRN | SERVICES | STAFFING & OUTSOURCING SERVICES | 15 | 30 |
| Coeur D Alene | CDE | BASIC MATERIALS | SILVER | 15 | 18.75 |
| Mother's Work | DEST | SERVICES | APPAREL STORES | 15 | 37.5 |
| Durect Corp | DRRX | HEALTHCARE | DRUG MANUFACTURERS | 15 | 21.25 |
| Five Star Quality | FVE | HEALTHCARE | LONG-TERM CARE FACILITIES | 15 | 27.5 |
| Gentiva Health Services Inc | GTIV | HEALTHCARE | HOME HEALTH CARE | 15 | 35 |
| Internap Network Services Corp | INAP | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 15 | 31.25 |
| New York & Company | NWY | SERVICES | APPAREL STORES | 15 | 33.75 |
| Orexigen | OREX | HEALTHCARE | DRUG MANUFACTURERS | 15 | 36.25 |
| Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 15 | 16.25 |
| Sigma Designs | SIGM | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 15 | 18.75 |
| S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 15 | 18.75 |
| Verastem Inc | VSTM | HEALTHCARE | BIOTECHNOLOGY | 15 | 20 |
The following chart shows historical average scores for small cap since 2010. Scores are approaching levels coincident with bottoms.
The best scoring small cap industry is trucking (SAIA, MRTN). Freight volume and tight capacity continues to support pricing. Truckers continue to modernize fleets for maintenance and diesel savings. Processed & packaged goods (BDBD, DMND) offer upside as convenience stores boost SKUs. Size and product innovation support margin. Auto parts (TWI, MTOR, SMP) demand is supported by ongoing domestic production rates and recovery European auto and truck demand. In February, EU commercial vehicle registrations grew 13.7% year-over-year, marking a 6th consecutive month of expansion. Spain, Germany, the UK, and Italy all posted double digit year-over-year growth. Through the first two months of 2014, commercial vehicle registrations are up 8.5% from last year. EU passenger car registrations are also strengthening, growing 8% in February from a year ago. Business (EXAM, KONG, CGX) and marketing services (MCHX, ABTL) round out the best small cap industries list this week.
The following chart shows the relative performance, by month, for small cap (IWM) versus the SPY. Historically, small caps have outpaced the SPY in May and June, suggesting weakness may be presenting an opportunity to shift down in market cap for upside by the end of Q2.
In small cap basics, buy independent oil & gas (CRK, PVA, PQ). In consumer, focus on processed & packaged goods and auto parts. The best financials basket is regional banks (SNBC, LKFN, BBCN). In healthcare, concentrate on medical appliances (GB, ARTC, SPNC, OFIX, BABY) and specialized health services (HWAY). The top scoring groups in industrial goods are heavy construction (AEGN, MTRX) and aerospace/defense (ORB, AVAV). In services, buy trucking, business services, marketing services, and railroads (GBX). Across technology, semi ICs (DIOD, RFMD), networking (SILC, BBOX), and diversified electronics (SIMO, IVAC) score highest.
| SMALL CAP INDUSTRY SCORE | 4/10/2014 | |
| Sector | INDUSTRY | Score |
| BASIC MATERIALS | INDEPENDENT OIL & GAS | 55.00 |
| BASIC MATERIALS | STEEL & IRON | 47.86 |
| BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 45.00 |
| BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 43.33 |
| BASIC MATERIALS | GOLD | 39.00 |
| CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 67.50 |
| CONSUMER GOODS | AUTO PARTS | 67.00 |
| CONSUMER GOODS | TEXTILES | 43.33 |
| CONSUMER GOODS | HOME FURNISHING & FIXTURES | 28.33 |
| FINANCIALS | REGIONAL BANKS | 57.86 |
| FINANCIALS | SAVINGS & LOANS | 48.33 |
| FINANCIALS | PROPERTY & CASUALITY INSURANCE | 46.00 |
| FINANCIALS | INVESTMENT BROKERAGE | 45.00 |
| FINANCIALS | CREDIT SERVICES | 32.50 |
| HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 51.67 |
| HEALTHCARE | SPECIALIZED HEALTH SERVICES | 50.00 |
| HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 48.33 |
| HEALTHCARE | BIOTECHNOLOGY | 46.27 |
| HEALTHCARE | DRUG RELATED PRODUCTS | 43.75 |
| HEALTHCARE | DRUG MANUFACTURERS | 42.00 |
| HEALTHCARE | HOME HEALTH CARE | 35.00 |
| INDUSTRIAL GOODS | HEAVY CONSTRUCTION | 57.50 |
| INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 52.00 |
| INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 47.50 |
| INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 40.00 |
| SERVICES | TRUCKING | 73.33 |
| SERVICES | BUSINESS SERVICES | 65.00 |
| SERVICES | MARKETING SERVICES | 60.00 |
| SERVICES | RAILROADS | 53.33 |
| SERVICES | MANAGEMENT SERVICES | 52.50 |
| SERVICES | RESTAURANTS | 52.00 |
| SERVICES | EDUCATION & TRAINING SERV | 50.83 |
| SERVICES | SPECIALTY RETAIL, OTHER | 49.17 |
| SERVICES | CATALOG & MAIL ORDER HOUSES | 48.33 |
| SERVICES | RESORTS AND CASINOS | 45.00 |
| SERVICES | STAFFING & OUTSOURCING SERVICES | 43.00 |
| SERVICES | APPAREL STORES | 34.23 |
| SERVICES | BROADCASTING | 28.00 |
| TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 58.57 |
| TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 56.25 |
| TECHNOLOGY | DIVERSIFIED ELECTRONICS | 54.00 |
| TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 53.33 |
| TECHNOLOGY | APPLICATION SOFTWARE | 44.00 |
| TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 43.75 |
| TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 43.50 |
| TECHNOLOGY | COMMUNICATION EQUIPMENT | 42.50 |
| TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 42.50 |
| TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 41.67 |
| TECHNOLOGY | PRINTED CIRCUIT BOARDS | 41.25 |
| TECHNOLOGY | WIRELESS COMMUNICATIONS | 38.75 |
| TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 37.22 |
| TECHNOLOGY | COMPUTER PERIPHERALS | 30.00 |
| TECHNOLOGY | INTERNET INFORMATION PROVIDER | 28.75 |
| TECHNOLOGY | INTERNET SERVICE PROVIDERS | 28.33 |
None.
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