Small Cap Report
The highest scoring names in small cap from 1 year ago (5/9/2013) returned 804 bps more than the Russell 2000. The best performers have been GBX up 113%, CRZO up 111%, CIR up 69%, MRTN up 63%, and POL up 63%.
- The best scoring small cap sector is utilities.
- The top scoring small cap industry is trucking.
The average score across our small cap universe is 46.11, below the four week average score of 46.38. The average small cap is trading -26% below its 52 week high, -3.6% below its 200 dma, and has 7.24 days to cover held short. For comparison, the average small cap had 8.3 days to cover held short a year ago.
The best scoring small cap sector is utilities, followed by industrial goods, consumer goods, and basic materials. Services score in line. Technology, healthcare, and financials score below average -- stay stock and industry specific in those baskets.
| SM CAP | 5/8/2014 | 4 Week MA | |||
| Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
| BEST | |||||
| Dxp Enterprises Inc | DXPE | SERVICES | INDUSTRIAL EQUIPMENT WHOLESALE | 105 | 105 |
| Greatbatch Inc. | GB | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 98.75 |
| Smith & Wesson Hldg. | SWHC | CONSUMER GOODS | SPORTING GOODS | 100 | 98.75 |
| American Ecology | ECOL | INDUSTRIAL GOODS | WASTE MANAGEMENT | 95 | 93.75 |
| ExamWorks | EXAM | SERVICES | BUSINESS SERVICES | 95 | 98.75 |
| Huron Consulting | HURN | FINANCIALS | MANAGEMENT SERVICES | 95 | 72.5 |
| Inter Parfums | IPAR | CONSUMER GOODS | PERSONAL PRODUCTS | 95 | 75 |
| Alimera Sciences | ALIM | HEALTHCARE | DRUG MANUFACTURERS | 90 | 87.5 |
| Arthrocare Corp. | ARTC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 90 | 92.5 |
| Cavco Industries | CVCO | INDUSTRIAL GOODS | MANUFACTURED HOUSING | 90 | 88.75 |
| Twin Disc | TWIN | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 90 | 77.5 |
| Aceto Corp. | ACET | HEALTHCARE | DRUG MANUFACTURERS | 85 | 77.5 |
| Albany Molecular | AMRI | HEALTHCARE | BIOTECHNOLOGY | 85 | 82.5 |
| Anaren Inc. | ANEN | TECHNOLOGY | WIRELESS COMMUNICATIONS | 85 | 85 |
| BioSpecifics | BSTC | HEALTHCARE | BIOTECHNOLOGY | 85 | 75 |
| Diamond Foods, Inc. | DMND | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 85 | 82.5 |
| American Healthways | HWAY | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 85 | 87.5 |
| Medifast | MED | SERVICES | SPECIALTY RETAIL, OTHER | 85 | 87.5 |
| Monolithic Power Sys | MPWR | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 85 | 76.25 |
| Meritor | MTOR | CONSUMER GOODS | AUTO PARTS | 85 | 82.5 |
| Nautilus Group | NLS | CONSUMER GOODS | SPORTING GOODS | 85 | 63.75 |
| PharMerica | PMC | SERVICES | DRUG STORES | 85 | 83.75 |
| Aerovironment Inc. | AVAV | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 80 | 77.5 |
| Diodes Inc | DIOD | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 80 | 82.5 |
| EPL Oil & Gas | EPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 80 | 83.75 |
| Forrester Research Inc. | FORR | SERVICES | RESEARCH SERVICES | 80 | 70 |
| Greenbrier Companies Inc | GBX | SERVICES | RAILROADS | 80 | 80 |
| Goodrich Petroleum Co. | GDP | BASIC MATERIALS | INDEPENDENT OIL & GAS | 80 | 73.75 |
| Jakks Pacific Inc. | JAKK | CONSUMER GOODS | TOYS & GAMES | 80 | 78.75 |
| Kongzhong | KONG | SERVICES | BUSINESS SERVICES | 80 | 77.5 |
| Quicksilver Res Inc | KWK | BASIC MATERIALS | INDEPENDENT OIL & GAS | 80 | 77.5 |
| Luminex Corp | LMNX | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 80 | 70 |
| NUTRISYSTEM Inc | NTRI | SERVICES | CONSUMER SERVICES | 80 | 70 |
| Orbital Sciences | ORB | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 80 | 71.25 |
| S C S Transport | SAIA | SERVICES | TRUCKING | 80 | 82.5 |
| State Auto Financial Corp | STFC | FINANCIALS | PROPERTY & CASUALITY INSURANCE | 80 | 60 |
| WORST | |||||
| Mannatech | MTEX | HEALTHCARE | DRUG RELATED PRODUCTS | 10 | 11.25 |
| Sify Ltd | SIFY | TECHNOLOGY | INTERNET SERVICE PROVIDERS | 10 | 16.25 |
| Telik Inc. | TELK | HEALTHCARE | DRUG MANUFACTURERS | 10 | 18.75 |
| Almost Family | AFAM | HEALTHCARE | HOME HEALTH CARE | 15 | 15 |
| Alvarion LTD | ALVR | TECHNOLOGY | WIRELESS COMMUNICATIONS | 15 | 15 |
| Arrowhead Research | ARWR | HEALTHCARE | BIOTECHNOLOGY | 15 | 21.25 |
| Cross Country Healthcare | CCRN | SERVICES | STAFFING & OUTSOURCING SERVICES | 15 | 16.25 |
| CytRX | CYTR | HEALTHCARE | BIOTECHNOLOGY | 15 | 12.5 |
| Durect Corp | DRRX | HEALTHCARE | DRUG MANUFACTURERS | 15 | 12.5 |
| Syneron Medical Ltd. | ELOS | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 15 | 20 |
| Entravision Communications Corp | EVC | SERVICES | BROADCASTING | 15 | 11.25 |
| Gentiva Health Services Inc | GTIV | HEALTHCARE | HOME HEALTH CARE | 15 | 15 |
| Novavax | NVAX | HEALTHCARE | BIOTECHNOLOGY | 15 | 12.5 |
| New York & Company | NWY | SERVICES | APPAREL STORES | 15 | 16.25 |
| Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 15 | 12.5 |
| S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 15 | 17.5 |
| Tornier NV | TRNX | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 15 | 20 |
The following chart shows average weekly small cap scores by sector since 2010.
The best scoring small cap industry is trucking (SAIA, MRTN). European commercial and passenger car registrations have turned positive and support auto parts (MTOR, SMP) sales. Business services (EXAM, KONG) are strong. Independent oil & gas (KWK, GDP, PVA) offers upside opportunity; however, historically managers have been rewarded for trimming into strength during May.
In small cap basic materials, concentrate on independent oil & gas, drillers (WTI), and industrial metals & minerals (ACI). In consumer goods, buy auto parts, processed & packaged goods (DMND), and textiles (DXYN, PERY). In financials, P&C insurers (STFC) and investment brokers (CLMS) score best. P&C stocks typically provide upside through the summer storm season. Across healthcare, only specialized health services (HWAY) scores above average -- stay stock specific, or trade up in market cap instead. The top industrial goods groups include heavy construction (AEGN, MTRX, GVA), aerospace/defense (ORB, AVAV), and general building materials (ACO). Summer air show order season offers support for aerospace contractors. Construction spending growth tied to improving vacancy rates in key markets supports building materials. In services, buy truckers, business services, and rails (GBX). The top technology industries are semi ICs (DIOD), semi equipment (ATMI), and business software (TSYS). However, managers should remember that SEMI's book-to-bill historically peaks in the second quarter.
| SMALL CAP INDUSTRY SCORE | 5/8/2014 | |
| Sector | INDUSTRY | Score |
| BASIC MATERIALS | INDEPENDENT OIL & GAS | 62.00 |
| BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 50.00 |
| BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 48.00 |
| BASIC MATERIALS | GOLD | 45.00 |
| BASIC MATERIALS | STEEL & IRON | 42.14 |
| CONSUMER GOODS | AUTO PARTS | 64.00 |
| CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 52.50 |
| CONSUMER GOODS | TEXTILES | 47.50 |
| CONSUMER GOODS | HOME FURNISHING & FIXTURES | 30.00 |
| FINANCIALS | PROPERTY & CASUALITY INSURANCE | 56.00 |
| FINANCIALS | INVESTMENT BROKERAGE | 47.50 |
| FINANCIALS | REGIONAL BANKS | 43.57 |
| FINANCIALS | CREDIT SERVICES | 35.00 |
| FINANCIALS | SAVINGS & LOANS | 33.89 |
| HEALTHCARE | SPECIALIZED HEALTH SERVICES | 47.86 |
| HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 46.83 |
| HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 45.71 |
| HEALTHCARE | BIOTECHNOLOGY | 43.10 |
| HEALTHCARE | DRUG MANUFACTURERS | 39.00 |
| HEALTHCARE | HOME HEALTH CARE | 36.43 |
| HEALTHCARE | DRUG RELATED PRODUCTS | 30.00 |
| INDUSTRIAL GOODS | HEAVY CONSTRUCTION | 56.25 |
| INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 53.00 |
| INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 48.75 |
| INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 40.00 |
| SERVICES | TRUCKING | 73.33 |
| SERVICES | BUSINESS SERVICES | 63.00 |
| SERVICES | RAILROADS | 53.33 |
| SERVICES | RESTAURANTS | 52.00 |
| SERVICES | CATALOG & MAIL ORDER HOUSES | 51.67 |
| SERVICES | EDUCATION & TRAINING SERV | 50.00 |
| SERVICES | MARKETING SERVICES | 48.33 |
| SERVICES | SPECIALTY RETAIL, OTHER | 48.33 |
| SERVICES | MANAGEMENT SERVICES | 43.75 |
| SERVICES | STAFFING & OUTSOURCING SERVICES | 43.00 |
| SERVICES | RESORTS AND CASINOS | 40.00 |
| SERVICES | BROADCASTING | 37.00 |
| SERVICES | APPAREL STORES | 35.83 |
| TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 57.14 |
| TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 53.75 |
| TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 49.38 |
| TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 48.75 |
| TECHNOLOGY | PRINTED CIRCUIT BOARDS | 47.50 |
| TECHNOLOGY | WIRELESS COMMUNICATIONS | 46.25 |
| TECHNOLOGY | DIVERSIFIED ELECTRONICS | 45.00 |
| TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 45.00 |
| TECHNOLOGY | COMMUNICATION EQUIPMENT | 40.00 |
| TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 38.33 |
| TECHNOLOGY | APPLICATION SOFTWARE | 38.00 |
| TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 37.78 |
| TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 37.00 |
| TECHNOLOGY | INTERNET INFORMATION PROVIDER | 32.50 |
| TECHNOLOGY | COMPUTER PERIPHERALS | 28.33 |
| TECHNOLOGY | INTERNET SERVICE PROVIDERS | 28.33 |
None.
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