The Best And Worst In Small Cap

The best scoring small caps from one year ago (1/24/2013) have outperformed the R2K by 912 bps over the past year, with no turnover.  The best performers have been RAD up 282%, MDSO up 167%, JAZZ up 161%, and AFFX up 134%. Methodology Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months.  The score is calculated by fusing together the key drivers of price movement including, earnings beats, earnings growth, at-the-market insider buys, institutional activity, short ratio analysis, price to earnings analysis and calendar quarter seasonality.  Those stocks appearing in our best list should be bought while those appearing in our worst list should be sold. NOTE:  Universe composition has been updated by market cap   The best small cap sector is industrial goods. The average small cap score is 61.61, above the 4 week moving average score of 60.96. The average small cap is trading -17.29% off its 52 week high, 8.8% above its 200 dma, has 7.05 days to cover short, and is expected to grow earnings 37% next  year.   The best scoring small cap sector is industrial goods.   Healthcare also scores above average.  Services and consumer goods score in line.  Financials, technology, utilities, and basics score below average.   SMALL CAP       1/23/2014 4 Week MA Company Name Symbol INDUSTRY SCORE SCORE   BEST           Hanger Orthopedic HGR HEALTHCARE SPECIALIZED HEALTH SERVICES 105 103.75 Agilysys Inc AGYS SERVICES ELECTRONICS WHOLESALE 100 101.25 Anacor Pharma ANAC HEALTHCARE BIOTECHNOLOGY 100 98.75 Infospace BCOR TECHNOLOGY INTERNET INFORMATION PROVIDER 100 96.25 Builders FirstSource BLDR SERVICES HOME IMPROVEMENT STORES 100 98.75 Century Aluminum CENX BASIC MATERIALS ALUMINUM 100 100 Cardinal Fin'l CFNL FINANCIALS REGIONAL BANKS 100 97.5 Chemed Inc CHE HEALTHCARE HOME HEALTH CARE 100 91.25 Cali. Water Svcs. CWT UTILITIES WATER UTILITIES 100 90 Greenbrier Companies Inc GBX SERVICES RAILROADS 100 100 MarineMax, Inc. HZO SERVICES SPECIALTY RETAIL, OTHER 100 96.25 PLX Technology Inc. PLXT TECHNOLOGY SEMICONDUCTOR- INTEGRATED CIRCUITS 100 96.25 Saba Software SABA TECHNOLOGY INTERNET SOFTWARE & SERVICES 100 100 Sun Hydraulics Inc SNHY INDUSTRIAL GOODS INDUSTRIAL EQUIPMENT & COMPONENTS 100 97.5 Encore Wire WIRE BASIC MATERIALS COPPER 100 98.75 Olympic Steel Inc ZEUS BASIC MATERIALS STEEL & IRON 100 91.25 Affymetrix Inc AFFX TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 95 97.5 Calgon Carbon Corp. CCC INDUSTRIAL GOODS POLLUTION & TREATMENT CONTROLS 95 95 Career Education Corp CECO SERVICES EDUCATION & TRAINING SERV 95 91.25 Dixie Group DXYN CONSUMER GOODS TEXTILES 95 95 I T T Educational ESI SERVICES EDUCATION & TRAINING SERV 95 93.75 Intevac Inc IVAC TECHNOLOGY DIVERSIFIED ELECTRONICS 95 92.5 Keryx Bio KERX HEALTHCARE BIOTECHNOLOGY 95 91.25 LCA Vision LCAV HEALTHCARE MEDICAL PRACTITIONERS 95 93.75 Matthews Intl Corp Cl A MATW INDUSTRIAL GOODS METAL FABRICATION 95 81.25 Perceptron Inc PRCP TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 95 95 Silicom LTD SILC TECHNOLOGY NETWORKING & COMMUNICATION DEVICES 95 95 State Auto Financial Corp STFC FINANCIALS PROPERTY & CASUALITY INSURANCE 95 87.5 Triquint Semi TQNT TECHNOLOGY SEMICONDUCTOR- INTEGRATED CIRCUITS 95 93.75 Universal Electronics Inc UEIC CONSUMER GOODS ELECTRONIC EQUIPMENT 95 85 Abaxis Inc. ABAX HEALTHCARE DIAGNOSTIC SUBSTANCES 90 72.5 Astec Industries Inc ASTE INDUSTRIAL GOODS FARM & CONSTRUCTION MACHINERY 90 73.75 Christopher Banks CBK SERVICES APPAREL STORES 90 87.5 C D I Corp CDI SERVICES STAFFING & OUTSOURCING SERVICES 90 92.5 Consolidated Graphics Inc CGX SERVICES BUSINESS SERVICES 90 88.75 Dxp Enterprises Inc DXPE SERVICES INDUSTRIAL EQUIPMENT WHOLESALE 90 87.5 American Ecology ECOL INDUSTRIAL GOODS WASTE MANAGEMENT 90 87.5 Finish Line Inc FINL SERVICES APPAREL STORES 90 92.5 Headwaters Inc HW INDUSTRIAL GOODS GENERAL BUILDING MATERIALS 90 86.25 Methode Elect MEI TECHNOLOGY DIVERSIFIED ELECTRONICS 90 88.75 Nanometrics Inc NANO TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 90 87.5 Newport Corp NEWP TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 90 87.5 Penn Virginia Corp PVA BASIC MATERIALS INDEPENDENT OIL & GAS 90 85 Spartan Motors SPAR CONSUMER GOODS TRUCKS & OTHER VEHICLES 90 81.25             WORST           Affymax AFFY HEALTHCARE BIOTECHNOLOGY 20 18.75 Alvarion LTD ALVR TECHNOLOGY WIRELESS COMMUNICATIONS 20 23.75 Coeur D Alene CDE BASIC MATERIALS SILVER 20 21.25 Gigamedia LTD GIGM TECHNOLOGY INTERNET SOFTWARE & SERVICES 20 22.5 Harmony Gold Mining HMY BASIC MATERIALS GOLD 20 23.75 S T R Holdings STRI TECHNOLOGY SEMICONDUCTOR- SPECIALIZED 20 20 UT Starcom UTSI TECHNOLOGY WIRELESS COMMUNICATIONS 20 21.25 Yellow Roadway Corporation YRCWD SERVICES TRUCKING 20 21.25     The best small cap industry is railroads.  Rising carload prices offer opportunity for suppliers (GBX).  Specialized health services (HGR) is strong scoring.  Demand for staffing (CDI, KFRC) peaks through the holidays, retrenches early in the year and re-exerts by spring.  Diversified electronics (IVAC, MEI) are strong and benefit from seasonal demand.  Management services (NCI) rounds out the best industries list this week.   In small cap basics, only steel & iron (ZEUS, NWPX) scores above average.  In consumer, buy textiles (DXYN).  Across financials, focus on regional banks (CFNL, MBWM), P&C insurers (STFC), and S&Ls (WIBC, NWBI).  The top healthcare groups are specialized health, biotech (ANAC, KERX, PDLI, NNVC), and medical instruments (MGCD, CMN).  In industrials, concentrate on aerospace/defense (ORB).  The best services baskets include rails, staffing, and management services.  In technology, buy diversified electronics, scientific & technical instruments (PRCP, AFFX, NEWP, NANO), and Internet information providers (BCOR).   SMALL CAP INDUSTRY SCORE   1/23/2014 Sector INDUSTRY Score       BASIC MATERIALS STEEL & IRON 70.71 BASIC MATERIALS INDUSTRIAL METALS & MINERALS 62.00 BASIC MATERIALS INDEPENDENT OIL & GAS 50.50 BASIC MATERIALS GOLD 46.00 BASIC MATERIALS OIL & GAS DRILLING & EXPLORATION 38.33 CONSUMER GOODS TEXTILES 68.00 CONSUMER GOODS PROCESSED & PACKAGED GOODS 61.25 CONSUMER GOODS AUTO PARTS 54.00 CONSUMER GOODS HOME FURNISHING & FIXTURES 53.33 FINANCIALS REGIONAL BANKS 68.57 FINANCIALS PROPERTY & CASUALITY INSURANCE 64.00 FINANCIALS SAVINGS & LOANS 62.78 FINANCIALS INVESTMENT BROKERAGE 61.25 FINANCIALS CREDIT SERVICES 40.00 HEALTHCARE SPECIALIZED HEALTH SERVICES 80.00 HEALTHCARE BIOTECHNOLOGY 67.71 HEALTHCARE MEDICAL INSTRUMENTS & SUPPLIES 67.50 HEALTHCARE MEDICAL APPLIANCES & EQUIPMENT 67.14 HEALTHCARE HOME HEALTH CARE 60.00 HEALTHCARE DRUG MANUFACTURERS 54.00 HEALTHCARE DRUG RELATED PRODUCTS 53.33 INDUSTRIAL GOODS AEROSPACE/DEFENSE  PRODUCTS & SERVICES 64.00 INDUSTRIAL GOODS GENERAL BUILDING MATERIALS 62.50 INDUSTRIAL GOODS HEAVY CONSTRUCTION 61.25 INDUSTRIAL GOODS INDUSTRIAL ELECTRICAL EQUIPMENT 51.67 SERVICES RAILROADS 81.67 SERVICES STAFFING & OUTSOURCING SERVICES 80.00 SERVICES MANAGEMENT SERVICES 75.00 SERVICES RESTAURANTS 69.17 SERVICES EDUCATION & TRAINING SERV 65.00 SERVICES BUSINESS SERVICES 63.75 SERVICES MARKETING SERVICES 61.25 SERVICES APPAREL STORES 59.62 SERVICES SPECIALTY RETAIL, OTHER 59.29 SERVICES BROADCASTING 56.00 SERVICES CATALOG & MAIL ORDER HOUSES 51.67 SERVICES TRUCKING 51.67 SERVICES RESORTS AND CASINOS 51.25 TECHNOLOGY DIVERSIFIED ELECTRONICS 75.00 TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 73.75 TECHNOLOGY INTERNET INFORMATION PROVIDER 70.00 TECHNOLOGY BUSINESS SOFTWARE & SERVICES 68.13 TECHNOLOGY INFORMATION TECHNOLOGY SERVICES 66.67 TECHNOLOGY NETWORKING & COMMUNICATION DEVICES 63.33 TECHNOLOGY COMPUTER PERIPHERALS 61.67 TECHNOLOGY SEMICONDUCTOR- INTEGRATED CIRCUITS 61.43 TECHNOLOGY SEMICONDUCTOR-SPECIALIZED 60.00 TECHNOLOGY APPLICATION SOFTWARE 58.33 TECHNOLOGY COMMUNICATION EQUIPMENT 55.83 TECHNOLOGY PRINTED CIRCUIT BOARDS 53.75 TECHNOLOGY INTERNET SOFTWARE & SERVICES 50.63 TECHNOLOGY SEMICONDUCTOR EQUIPMENT & MATERIALS 50.00 TECHNOLOGY WIRELESS COMMUNICATIONS 33.75 TECHNOLOGY INTERNET SERVICE PROVIDERS 33.33