Looking for Growth? Try the Companies Being Added to the Russell 3000

“It is the best of times. It is the worst of times.” With the equities markets acting crazily every day, an investor has a hard time picking winners. There is no foolproof way of doing so. There is no saying in today’s market that one should even be trying to pick “winners”. Picking losers may be more profitable. Still if one likes to be optimistic (and I do), it is nice to have a good place to start to look for winners.

The Russell 3000 Index is a good starting place, especially the newcomers to it. The index is being reconstituted currently. A new list will be published on Monday June 29, 2009. The list was finalized on June 26, 2009. Stocks that are being added to the Russell 3000 Index have market cap's that are growing (at least relatively). If other people have been buying them, there is likely a good reason. Revenue growth, earnings growth, new drugs, new technology, etc. are just some of the factors that are driving these stocks higher.

In addition, stocks that are being added to this list are likely to benefit from a near term wave of buying by mutual funds, ETF’s, hedge funds, etc. that routinely buy all of the Russell 3000 Index stocks (or all of one of its sub indices). This means that each of these “added” stocks is more likely that the average stock to go up in value over the near term. The table of “added” companies is below.

Change	Company	Symbol	Sector
Add	ABOVENET INC	ABVT	Technology
Add	ACACIA RESEARCH CORP	ACTG	Technology
Add	ACTIVIDENTITY CORP	ACTI	Technology
Add	AIR TRANSPORT SERVICES	ATSG	Producer Durables
Add	ALLIANCE FINANCIAL CORP	ALNC	Financial Services
Add	ALLIED HEALTHCARE INTL	AHCI	Health Care
Add	ALLION HEALTHCARE INC	ALLI	Health Care
Add	AMERICA SERVICE GROUP	ASGR	Health Care
Add	AMERICAN CARESOURCE HLDG	ANCI	Health Care
Add	AMERICAN DENTAL PARTNERS	ADPI	Health Care
Add	AMERICAN ITALIAN PASTA	AIPC	Consumer Staples
Add	AMERICAN NATL BANKSHARES	AMNB	Financial Services
Add	AMERICAN PHYSICIANS	AMPH	Financial Services
Add	AMERICAN REALTY INVESTOR	ARL	Financial Services
Add	AMICAS INC	AMCS	Technology
Add	APAC CUSTOMER SERVICES	APAC	Producer Durables
Add	ARGAN INC	AGX	Producer Durables
Add	ARTESIAN RESOURCES CORP	ARTNA	Utilities
Add	ARYX THERAPEUTICS INC	ARYX	Health Care
Add	ASPECT MEDICAL SYSTEMS	ASPM	Health Care
Add	ASTRONICS CORP	ATRO	Producer Durables
Add	ATS MEDICAL INC	ATSI	Health Care
Add	AUBURN NATL BANCORP	AUBN	Financial Services
Add	AVANIR PHARMACEUTICALS	AVNR	Health Care
Add	AVI BIOPHARMA INC	AVII	Health Care
Add	BANCORP INC	TBBK	Financial Services
Add	BANCORP RHODE ISLAND INC	BARI	Financial Services
Add	BANK KY FINL CORP	BKYF	Financial Services
Add	BANK OF MARIN BANCORP	BMRC	Financial Services
Add	BAR HBR BANKSHARES	BHB	Financial Services
Add	BARRETT BUSINESS SERVICE	BBSI	Producer Durables
Add	BENIHANA INC	BNHNA	Consumer Discretionary
Add	BIOCRYST PHARMACEUTICALS	BCRX	Health Care
Add	BIODELIVERY SCIENCES	BDSI	Health Care
Add	BIOSCRIP INC	BIOS	Health Care
Add	BIOSPECIFICS TECHNO CORP	BSTC	Health Care
Add	BLUELINX HOLDINGS INC	BXC	Materials & Processing
Add	BOOKS-A-MILLION INC	BAMM	Consumer Discretionary
Add	BOOTS & COOTS INC	WEL	Energy
Add	BOVIE MEDICAL CORP	BVX	Health Care
Add	BRIDGE BANCORP INC	BDGE	Financial Services
Add	BRIDGEPOINT ED INC	BPI	Consumer Discretionary
Add	BROADWIND ENERGY INC	BWEN	Producer Durables
Add	CALIFORNIA FIRST NATL	CFNB	Financial Services
Add	CAPE BANCORP INC	CBNJ	Financial Services
Add	CARDIOVASCULAR SYS INC	CSII	Health Care
Add	CARDIUM THERAPEUTICS INC	CXM	Health Care
Add	CARIBOU COFFEE CO INC	CBOU	Consumer Discretionary
Add	CARMIKE CINEMAS INC	CKEC	Consumer Discretionary
Add	CARROLS RESTAURANT GRP	TAST	Consumer Discretionary
Add	CELL THERAPEUTICS INC	CTIC	Health Care
Add	CENTER BANCORP INC	CNBC	Financial Services
Add	CENTURY BANCORP INC	CNBKA	Financial Services
Add	CHASE CORP	CCF	Materials & Processing
Add	CHELSEA THERAPEUTICS INT	CHTP	Health Care
Add	CHEVIOT FINANCIAL CORP	CHEV	Financial Services
Add	CHICOPEE BANCORP INC	CBNK	Financial Services
Add	CHINA AUTOMOTIVE SYSTEMS	CAAS	Consumer Discretionary
Add	CHINA GREEN AGRICULTURE	CGA	Consumer Staples
Add	CHINA HOUSING & LAND DEV	CHLN	Financial Services
Add	CHINA TRANSINFO TECHNLGY	CTFO	Technology
Add	CHINA-BIOTICS INC	CHBT	Consumer Staples
Add	CHINACAST EDU CORP	CAST	Consumer Discretionary
Add	CITIZENS HLDG CO MISS	CIZN	Financial Services
Add	CLARIENT INC	CLRT	Health Care
Add	CNB FINL CORP PA	CCNE	Financial Services
Add	COMMUNICATIONS SYSTEMS	JCS	Technology
Add	COMPUTER TASK GROUP INC	CTGX	Technology
Add	CONTINUCARE CORP	CNU	Health Care
Add	CORNERSTONE THERAPEUTICS	CRTX	Health Care
Add	CPI CORP	CPY	Consumer Discretionary
Add	CREDO PETROLEUM CORP	CRED	Energy
Add	CUBIC ENERGY INC	QBC	Energy
Add	CURIS INC	CRIS	Health Care
Add	CUTERA INC	CUTR	Health Care
Add	D & E COMMUNICATIONS INC	DECC	Utilities
Add	DDI CORP	DDIC	Producer Durables
Add	DELCATH SYS INC	DCTH	Health Care
Add	DESTINATION MATERNITY	DEST	Consumer Discretionary
Add	DIAMOND MGMT & TECH INC	DTPI	Producer Durables
Add	DIEDRICH COFFEE INC	DDRX	Consumer Staples
Add	DIGITALGLOBE INC	DGI	Technology
Add	DYNAMICS RESEARCH CORP	DRCO	Technology
Add	DYNEX CAPITAL INC	DX	Financial Services
Add	EAGLE BANCORP INC	EGBN	Financial Services
Add	EASTERN CO	EML	Materials & Processing
Add	EASTERN INSURANCE HLDGS	EIHI	Financial Services
Add	ELECTRO-OPTICAL SCIENCES	MELA	Health Care
Add	ELOYALTY CORP	ELOY	Technology
Add	ENDOLOGIX INC	ELGX	Health Care
Add	ENTEROMEDICS INC	ETRM	Health Care
Add	ENTERPRISE BANCORP INC	EBTC	Financial Services
Add	EPLUS INC	PLUS	Technology
Add	ESB FINANCIAL CORP	ESBF	Financial Services
Add	FEMALE HEALTH CO	FHCO	Consumer Staples
Add	FIBERNET TELECOM GRP INC	FTGX	Utilities
Add	FIRST CALIFORNIA FINL GR	FCAL	Financial Services
Add	FIRST DEFIANCE FINANCIAL	FDEF	Financial Services
Add	FIRST FINL SVC CORP	FFKY	Financial Services
Add	FIRST LONG ISLAND CORP	FLIC	Financial Services
Add	FLORIDA PUBLIC UTILITIES	FPU	Utilities
Add	FRANKLIN COVEY CO	FC	Consumer Discretionary
Add	FRISCHS RESTAURANTS INC	FRS	Consumer Discretionary
Add	GANDER MOUNTAIN COMPANY	GMTN	Consumer Discretionary
Add	GERMAN AMERICAN BANCORP	GABC	Financial Services
Add	GLADSTONE COMMERCIAL	GOOD	Financial Services
Add	GP STRATEGIES CORP	GPX	Producer Durables
Add	GREAT SOUTHERN BANCORP	GSBC	Financial Services
Add	GREEN PLAINS RENEWABLE	GPRE	Energy
Add	GSE SYS INC	GVP	Technology
Add	GSI TECHNOLOGY	GSIT	Technology
Add	HAMPTON ROADS BANKSHARES	HMPR	Financial Services
Add	HARVARD BIOSCIENCE INC	HBIO	Health Care
Add	HAWK CORP	HWK	Materials & Processing
Add	HAWKINS INC	HWKN	Materials & Processing
Add	HEALTH GRADES INC	HGRD	Producer Durables
Add	HEARTWARE INTL INC	HTWR	Health Care
Add	HECKMANN CORP	HEK	Consumer Staples
Add	HEMISPHERX BIOPHARMA INC	HEB	Health Care
Add	HERITAGE CRYL CLEAN INC	HCCI	Producer Durables
Add	HERITAGE FINANCIAL CORP	HFWA	Financial Services
Add	HERITAGE FINANCIAL GROUP	HBOS	Financial Services
Add	HICKORY TECH CORP	HTCO	Utilities
Add	HI-TECH PHARMACAL CO INC	HITK	Health Care
Add	HOME BANCORP INC	HBCP	Financial Services
Add	HOME DIAGNOSTICS INC	HDIX	Health Care
Add	IMERGENT INC	IIG	Technology
Add	IMPAX LABORATORIES INC	IPXL	Health Care
Add	INCONTACT INC	SAAS	Utilities
Add	INFINITY PHARMACEUTICALS	INFI	Health Care
Add	INFORMATION SERVICES GRP	III	Financial Services
Add	INNODATA ISOGEN INC	INOD	Producer Durables
Add	INSMED INC	INSM	Health Care
Add	INTELLON CORP	ITLN	Technology
Add	IPASS INC	IPAS	Consumer Discretionary
Add	ISRAMCO INC	ISRL	Energy
Add	ISTA PHARMACEUTICALS INC	ISTA	Health Care
Add	JMP GROUP INC	JMP	Financial Services
Add	K FED BANCORP	KFED	Financial Services
Add	KENTUCKY FIRST FEDERAL	KFFB	Financial Services
Add	KIRKLANDS INC	KIRK	Consumer Discretionary
Add	KVH INDUSTRIES INC	KVHI	Technology
Add	LAKES ENTERTAINMENT INC	LACO	Consumer Discretionary
Add	LANNETT CO INC	LCI	Health Care
Add	LCA-VISION INC	LCAV	Health Care
Add	LEGACY BANCORP INC	LEGC	Financial Services
Add	LIONBRIDGE TECHNOLOGIES	LIOX	Technology
Add	LITHIA MOTORS INC	LAD	Consumer Discretionary
Add	LIVEPERSON INC	LPSN	Technology
Add	LODGENET INTERACTIVE	LNET	Consumer Discretionary
Add	LOGILITY INC	LGTY	Technology
Add	MAC-GRAY CORP	TUC	Producer Durables
Add	MAIN STREET CAPITAL CORP	MAIN	Financial Services
Add	MAKO SURGICAL CORP	MAKO	Health Care
Add	MATRIXX INITIATIVES INC	MTXX	Health Care
Add	MAXIM INTEGRATED PRODS	MXIM	Technology
Add	MCCORMICK & SCHMICKS	MSSR	Consumer Discretionary
Add	MEDIFAST INC	MED	Consumer Staples
Add	MEDQUIST INC	MEDQ	Health Care
Add	MEMSIC INC	MEMS	Technology
Add	MERCER INS GROUP INC	MIGP	Financial Services
Add	MERCHANTS BANCSHARES	MBVT	Financial Services
Add	MERGE HEALTHCARE INC	MRGE	Health Care
Add	METROPOLITAN HEALTH NETW	MDF	Health Care
Add	MICROMET INC	MITI	Health Care
Add	MIDSOUTH BANCORP INC	MSL	Financial Services
Add	MILLER INDUSTRIES INC	MLR	Producer Durables
Add	MONEYGRAM INTERNATIONAL	MGI	Financial Services
Add	MULTIMEDIA GAMES INC	MGAM	Consumer Discretionary
Add	MYR GROUP INC DEL	MYRG	Producer Durables
Add	NATIONAL BANKSHARES INC	NKSH	Financial Services
Add	NAVISTAR INTL CORP NEW	NAV	Producer Durables
Add	NETWORK EQUIPMENT TECH	NWK	Technology
Add	NEUROGESX INC	NGSX	Health Care
Add	NIVS INTELLIMEDIA TECH	NIV	Consumer Discretionary
Add	NOBEL LEARNING CMNTYS	NLCI	Consumer Discretionary
Add	NORTH AMERN GALVANZNG	NGA	Materials & Processing
Add	NORTHEAST CMNTY BANCORP	NECB	Financial Services
Add	NORTHRIM BANCORP INC	NRIM	Financial Services
Add	NORWOOD FINANCIAL CORP	NWFL	Financial Services
Add	NOVAMED INC	NOVA	Health Care
Add	NUTRACEUTICAL INTL CORP	NUTR	Consumer Staples
Add	OHIO VY BANC CORP	OVBC	Financial Services
Add	OIL DRI CORP OF AMERICA	ODC	Materials & Processing
Add	OLD POINT FINL CORP	OPOF	Financial Services
Add	OMNOVA SOLUTIONS INC	OMN	Materials & Processing
Add	ONCOGENEX PHARMAS INC	OGXI	Health Care
Add	OPENTABLE INC	OPEN	Technology
Add	OPENWAVE SYSTEMS INC	OPWV	Technology
Add	ORCHIDS PAPER PRODS COMP	TIS	Consumer Staples
Add	ORRSTOWN FINL SVCS INC	ORRF	Financial Services
Add	OVERHILL FARMS INC	OFI	Consumer Staples
Add	OXIGENE INC	OXGN	Health Care
Add	PAR TECHNOLOGY CORP	PTC	Technology
Add	PARAMOUNT GOLD & SILVER	PZG	Materials & Processing
Add	PENNICHUCK CORP	PNNW	Utilities
Add	PENNS WOODS BANCORP INC	PWOD	Financial Services
Add	PEOPLES FINL CORP MISS	PFBX	Financial Services
Add	PERMA-FIX ENVIRONMENTAL	PESI	Producer Durables
Add	PERVASIVE SOFTWARE INC	PVSW	Technology
Add	PONIARD PHARMA INC	PARD	Health Care
Add	PORTEC RAIL PRODUCTS INC	PRPX	Producer Durables
Add	PORTER BANCORP INC	PBIB	Financial Services
Add	PRIMORIS SVCS CORP	PRIM	Producer Durables
Add	PRUDENTIAL BANCORP INC	PBIP	Financial Services
Add	QC HOLDINGS INC	QCCO	Financial Services
Add	RAE SYSTEMS INC	RAE	Producer Durables
Add	READING INTERNATIONAL	RDI	Consumer Discretionary
Add	RED LION HOTELS CORP	RLH	Consumer Discretionary
Add	RENTRAK CORP	RENT	Consumer Discretionary
Add	REPROS THERAPEUTICS INC	RPRX	Health Care
Add	REPUBLIC FIRST BANCORP	FRBK	Financial Services
Add	REVLON INC	REV	Consumer Discretionary
Add	REWARDS NETWORK INC	DINE	Financial Services
Add	ROCHESTER MEDICAL CORP	ROCM	Health Care
Add	ROCKWELL MEDICAL TECH	RMTI	Health Care
Add	ROSETTA STONE INC	RST	Consumer Discretionary
Add	SABA SOFTWARE INC	SABA	Technology
Add	SANTARUS INC	SNTS	Health Care
Add	SATCON TECHNOLOGY CORP	SATC	Producer Durables
Add	SCICLONE PHARMACEUTICALS	SCLN	Health Care
Add	SENECA FOODS CORP	SENEA	Consumer Staples
Add	SIGA TECHNOLOGIES INC	SIGA	Health Care
Add	SMARTHEAT INC	HEAT	Producer Durables
Add	SOLARWINDS INC	SWI	Technology
Add	SPECTRUM CONTROL INC	SPEC	Technology
Add	SPECTRUM PHARMACEUTICALS	SPPI	Health Care
Add	SPORT SUPPLY GROUP INC	RBI	Consumer Discretionary
Add	SRS LABS INC	SRSL	Technology
Add	STANDARD MOTOR PRODUCTS	SMP	Consumer Discretionary
Add	STANLEY FURNITURE CO INC	STLY	Consumer Discretionary
Add	STARTEK INC	SRT	Producer Durables
Add	STEMCELLS INC	STEM	Health Care
Add	STURM RUGER & CO INC	RGR	Consumer Discretionary
Add	SUMTOTAL SYSTEMS INC	SUMT	Technology
Add	SUPERGEN INC	SUPG	Health Care
Add	SUREWEST COMMUNICATIONS	SURW	Utilities
Add	SYNTROLEUM CORP	SYNM	Energy
Add	TGC INDUSTRIES INC	TGE	Energy
Add	TICC CAPITAL CORP	TICC	Financial Services
Add	TIER TECHNOLOGIES INC	TIER	Technology
Add	TODD SHIPYARDS CORP	TOD	Producer Durables
Add	TOWER BANCORP INC	TOBC	Financial Services
Add	TRANSCEND SERVICES INC	TRCR	Health Care
Add	TRANSCONTINENTAL REALTY	TCI	Financial Services
Add	TRAVELZOO INC	TZOO	Producer Durables
Add	TRIANGLE CAPITAL CORP	TCAP	Financial Services
Add	UMH PROPERTIES INC	UMH	Financial Services
Add	UNITED SECURITY BANC INC	USBI	Financial Services
Add	UNITIL CORP	UTL	Utilities
Add	UNIVERSAL INSURANCE	UVE	Financial Services
Add	UNIVERSAL TRAVEL GROUP	UTA	Consumer Discretionary
Add	URANERZ ENERGY CORP	URZ	Materials & Processing
Add	URANIUM ENERGY CORP	UEC	Materials & Processing
Add	US AUTO PARTS NETWRK INC	PRTS	Consumer Discretionary
Add	US GOLD CORP	UXG	Materials & Processing
Add	USA TRUCK INC	USAK	Producer Durables
Add	UTAH MED PRODS INC	UTMD	Health Care
Add	VANDA PHARMACEUTICALS	VNDA	Health Care
Add	VANTAGE DRILLING COMPANY	VTG	Energy
Add	VASCULAR SOLUTIONS INC	VASC	Health Care
Add	VICAL INC	VICL	Health Care
Add	VIRAGE LOGIC CORP	VIRL	Technology
Add	WASHINGTON BANKING CO	WBCO	Financial Services
Add	WEST MARINE INC	WMAR	Consumer Discretionary
Add	WHITE ELECTRONIC DESIGNS	WEDC	Technology
Add	WILBER CORP	GIW	Financial Services
Add	WILLIS LEASE FINANCE	WLFC	Producer Durables
Add	X-RITE INC	XRIT	Producer Durables
Add	YORK WATER COMPANY	YORW	Utilities
Add	YOUBET COM INC	UBET	Consumer Discretionary
Add	YOUNG INNOVATIONS INC	YDNT	Health Care
Add	ZAPATA CORP	ZAP	Materials & Processing
Add	ZION OIL & GAS INC	ZN	Energy
Add	ZIX CORP	ZIXI	Technology

Since I don’t want people to be confused about exactly what the Russell 3000 Index is, I have included the Wikipedia description of the construction methodology:

“The Russell Indexes are objectively constructed based on transparent rules. The broadest U.S. Russell Index is the Russell 3000E Index which contains the 4,000 largest (by market capitalization) companies incorporated in the U.S., plus (beginning with the 2007 reconstitution) companies incorporated in an offshore financial center that have their headquarters in the U.S. - a so-called "benefits-driven incorporation". Each Russell Index is a subset of the Russell 3000E Index and broken down by market capitalization and style. The members of the Russell 3000E Index and its subsets are determined each year during annual reconstitution and enhanced quarterly with the addition of Initial Public Offerings (IPOs). The Russell 3000E Index represents approximately 99 percent of the U.S. equity market. Russell excludes stocks trading below US$1; stocks that trade on the pink sheets and OTC Bulletin Board; closed-end mutual funds, limited partnerships, and royalty trusts; and non-U.S. incorporated stocks (other than the benefits driven incorporations described above), foreign stocks, and American Depositary Receipts (ADRs). Also, Berkshire Hathaway is excluded despite its large market capitalization because its high price per share limits its liquidity.”

I hope you find this list helpful.

Disclosure: I am currently long HEB, and BDSI.