Small Cap Report
- Utilities are the top scoring small cap sector.
- The best small cap industry is trucking.
Scores have shifted to reflect second quarter seasonality. Defensive baskets are the best seasonal sectors ahead of summer de-risking.
The average small cap score is 51 this week, below the four week moving average of 55. The average small cap is trading 21% below its 52 week high, 3.98% above its 200 dma, and has 7.04 days to cover held short.
Utiltiies, industrial goods, and consumer goods score best. Healthcare and services score in line. Basics, technology, and financials score below average.
| SMALL CAP | 4/3/2014 | 4 Week MA | |||
| Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
| BEST | |||||
| Greatbatch Inc. | GB | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 71.25 |
| Smith & Wesson Hldg. | SWHC | CONSUMER GOODS | SPORTING GOODS | 100 | 81.25 |
| Vascular Solutions | VASC | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 100 | 92.5 |
| Arthrocare Corp. | ARTC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 95 | 72.5 |
| Boulder Brands | BDBD | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 95 | 83.75 |
| American Ecology | ECOL | INDUSTRIAL GOODS | WASTE MANAGEMENT | 95 | 88.75 |
| Inter Parfums | IPAR | CONSUMER GOODS | PERSONAL PRODUCTS | 95 | 76.25 |
| Movado Group Inc | MOV | CONSUMER GOODS | RECREATIONAL GOODS, OTHER | 95 | 63.75 |
| ExamWorks | EXAM | SERVICES | BUSINESS SERVICES | 95 | 90 |
| Commtech Telecom | CMTL | TECHNOLOGY | COMMUNICATION EQUIPMENT | 90 | 72.5 |
| Cavco Industries | CVCO | INDUSTRIAL GOODS | MANUFACTURED HOUSING | 90 | 68.75 |
| Diodes Inc | DIOD | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 90 | 96.25 |
| American Healthways | HWAY | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 90 | 55 |
| Titan Int'l | TWI | CONSUMER GOODS | AUTO PARTS | 90 | 71.25 |
| Alimera Sciences | ALIM | HEALTHCARE | DRUG MANUFACTURERS | 90 | 82.5 |
| Cardiovascular Systems | CSII | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 90 | 75 |
| Amsurg | AMSG | HEALTHCARE | HOSPITALS | 85 | 53.75 |
| Anaren Inc. | ANEN | TECHNOLOGY | WIRELESS COMMUNICATIONS | 85 | 57.5 |
| Diamond Foods, Inc. | DMND | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 85 | 75 |
| EPL Oil & Gas | EPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 85 | 68.75 |
| Federal Signal | FSS | CONSUMER GOODS | TRUCKS & OTHER VEHICLES | 85 | 77.5 |
| Medifast | MED | SERVICES | SPECIALTY RETAIL, OTHER | 85 | 53.75 |
| Monolithic Power Sys | MPWR | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 85 | 82.5 |
| Meritor | MTOR | CONSUMER GOODS | AUTO PARTS | 85 | 68.75 |
| Nautilus Group | NLS | CONSUMER GOODS | SPORTING GOODS | 85 | 67.5 |
| Sun Hydraulics Inc | SNHY | INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 85 | 88.75 |
| Wright Medical Group | WMGI | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 85 | 58.75 |
| Merrimack Pharm | MACK | HEALTHCARE | BIOTECHNOLOGY | 85 | 58.75 |
| PharMerica | PMC | SERVICES | DRUG STORES | 85 | 78.75 |
| The Spectranetics Corp | SPNC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 85 | 68.75 |
| Microsoft | MSFT | TECHNOLOGY | APPLICATION SOFTWARE | 80 | 63.75 |
| Orbital Sciences | ORB | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 80 | 72.5 |
| Protein Design | PDLI | HEALTHCARE | BIOTECHNOLOGY | 80 | 65 |
| Penford Corp | PENX | BASIC MATERIALS | SPECIALTY CHEMICALS | 80 | 88.75 |
| S C S Transport | SAIA | SERVICES | TRUCKING | 80 | 76.25 |
| Silicon Motion Tech ADS | SIMO | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 80 | 66.25 |
| State Auto Financial Corp | STFC | FINANCIALS | PROPERTY & CASUALITY INSURANCE | 80 | 85 |
| Albany Molecular | AMRI | HEALTHCARE | BIOTECHNOLOGY | 80 | 75 |
| BioSpecifics | BSTC | HEALTHCARE | BIOTECHNOLOGY | 80 | 78.75 |
| WORST | |||||
| CCA Industries | CAW | CONSUMER GOODS | PERSONAL PRODUCTS | 10 | 27.5 |
| Progenics Pharmaceuticals Inc | PGNX | HEALTHCARE | BIOTECHNOLOGY | 10 | 25 |
| CytRX | CYTR | HEALTHCARE | BIOTECHNOLOGY | 10 | 47.5 |
| Durect Corp | DRRX | HEALTHCARE | DRUG MANUFACTURERS | 10 | 27.5 |
| Alvarion LTD | ALVR | TECHNOLOGY | WIRELESS COMMUNICATIONS | 15 | 25 |
| Aviat Networks | AVNW | TECHNOLOGY | COMMUNICATION EQUIPMENT | 15 | 25 |
| Blout International | BLT | CONSUMER GOODS | HOUSEWARES & ACCESSORIES | 15 | 33.75 |
| Coeur D Alene | CDE | BASIC MATERIALS | SILVER | 15 | 18.75 |
| Mother's Work | DEST | SERVICES | APPAREL STORES | 15 | 48.75 |
| Gentiva Health Services Inc | GTIV | HEALTHCARE | HOME HEALTH CARE | 15 | 42.5 |
| Mannatech | MTEX | HEALTHCARE | DRUG RELATED PRODUCTS | 15 | 37.5 |
| Nanoviricides | NNVC | HEALTHCARE | BIOTECHNOLOGY | 15 | 37.5 |
| New York & Company | NWY | SERVICES | APPAREL STORES | 15 | 42.5 |
| Office Depot | ODP | SERVICES | SPECIALTY RETAIL, OTHER | 15 | 28.75 |
| Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 15 | 16.25 |
| Sigma Designs | SIGM | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 15 | 21.25 |
| Sarepta Thera | SRPT | HEALTHCARE | BIOTECHNOLOGY | 15 | 25 |
| S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 15 | 20 |
| Tredegar Corp | TG | BASIC MATERIALS | ALUMINUM | 15 | 32.5 |
| Alphatec Holdings | ATEC | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 15 | 32.5 |
| Five Star Quality | FVE | HEALTHCARE | LONG-TERM CARE FACILITIES | 15 | 37.5 |
| Verastem Inc | VSTM | HEALTHCARE | BIOTECHNOLOGY | 15 | 30 |
Market seasonality is neutral for the second quarter. The Russell 2000 (IWM) has gained in 6 of the past 10 years, producing a median 0.85% return in the period.
The best scoring small cap industry is trucking (SAIA, MRTN). Processed & packaged goods (BDBD, DMND) score highly. Business services (EXAM, KONG) offer upside. Auto production in North America and rebounding auto markets in Europe support auto parts plays (TWI, MTOR).
In small cap basics, buy independent oil & gas (CRK, PVA, PQ). In consumer goods, focus on processed & packaged goods, auto parts, and textiles (DXYN, BEBE). The best financials baskets are P&C insurers (STFC, HMN), which score highly ahead of hurricane season, and investment brokers. In healthcare, buy medical appliances (GB, ARTC, CSII, SPNC, WMGI), and medical instruments (VASC, LMNX, STAA). The best industrial goods groups are heavy construction (AEGN, MTRX), aerospace/defense (ORB), and general building materials (ACO, USLM). Trucking, business services, and management services (NCI, HSII) score highest in services. The top technology industries are networking & communication (SILC), semi ICs (DIOD, RFMD), and diversified electronics (SIMO). The SEMI book-to-bill historically peaks in the second quarter, so plan accordingly.
| SMALL CAP INDUSTRY SCORE | 4/3/2014 | |
| Sector | INDUSTRY | Score |
None.
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