Last month I decided to tweak the criteria for the Small Cap Earnings Surprise Portfolio I track on the right hand side of the blog using Google Docs. Last month's results can be seen here. The 10 stocks on last month's list returned an average of 15.4%, a healthy one month return by any standard. In comparison SPY, the S&P 500 ETF, returned 6.9% and VBR, a small cap value ETF, returned 11.1%. Return figures exclude dividends, commission, and slippage.
My screen looks for a low PEG, recent earnings surprises, a minimum volume requirement, and small market capitalization. I exclude OTC stocks and I further narrow the list based on additional fundamental factors to 10 stocks. The list, as always, is not a specific portfolio but a recommendation for further research. The stocks on this list can be especially volatile given their low market capitalization, so please do proper due diligence. The current list of stocks is below and returns can be tracked real-time on the right hand side of Scott's Investments:
| Ticker | Name | Free Trend Analysis | Last | MktCap |
| AEA | Advance America, Cash Advance | Here | 6.47 | 398.64 |
| CNU | Continucare Corporation | Here | 4.27 | 256.02 |
| FUQI | Fuqi International, Inc. | Here | 19.41 | 536.27 |
| JST | Jinpan International Limited | Here | 24.51 | 402.44 |
| NSIT | Insight Enterprises, Inc. | Here | 14.33 | 658.8 |
| VLCM | Volcom, Inc. | Here | 18.33 | 446.78 |
| BIOS | BioScrip Inc. | Here | 8.1 | 322.34 |
| JOEZ | Joe's Jeans Inc. | Here | 2.7 | 166.35 |
| DM | Dolan Media Company | Here | 10.14 | 307.51 |
| VRAD | Virtual Radiologic Corporation | Here | 9.94 | 158.59 |
Disclosure: No positions
