Stock Market Beat's Small-, Mid- and Large-Cap Watch Lists, 3Q07

by: William Trent, CFA

With the end of the first quarter approaching, it is time to adjust the names in my Watch Lists. I will price all the new lists as of the close on Friday, June 29.

Below I present my planned updates to the Small-Cap Watch List. There was a fairly high level of turnover to the list. 12 of the 24 names from the previous run made it to the current list, which was also 24 names. Performance-wise, the list created in March has returned an unweighted average return of 2.6% through June 28, with 80% of the stocks in positive territory. All of the money-losers from the previous list fell out of consideration.

So without further ado, the names on the chopping block from the previous list are: PW Eagle (OTC:PWEI), Insteel Industries (NASDAQ:IIIN), Allied Defense (ADG), Hartmarx (HMX), Parlux (NASDAQ:PARL), Hansen Natural (HANS), FirstFed Financial (FED), Young Innovations (NASDAQ:YDNT), ITT Educational (NYSE:ESI), Rent-a-Center (NASDAQ:RCII), Valassis (NYSE:VCI), and Travelzoo (NASDAQ:TZOO). The castaways include four of the five money losers from the previous portfolio (HMX, PARL, YDNT and TZOO) as well as the biggest gainer (ESI).

The new Small-Cap Watch List is:

trent smallcap

Next I present my planned updates to the Mid-Cap Watch List. There was a fairly high level of turnover to the list. 14 of the 24 names from the previous run made it to the current list, which is also 24 names. Performance-wise, the list created in March has returned an unweighted average return of about 2.0% (Stockpickr hasn’t figured out at the time of writing that SEIC’s 2-1 split did not result in a 50% loss) through June 24, with 63% of the stocks in positive territory. All of the money-losers from the previous list fell out of consideration.

So without further ado, the names on the chopping block from the previous list are: Pool Corp. (NASDAQ:POOL), First Federal (FED), Quebecor (NASDAQ:IQW), Shuffle Master (NASDAQ:SHFL), Valassis (VCI), NutriSystem (NASDAQ:NTRI), IMS Health (RX), Komag (KOMG), Travelzoo (TZOO), and New Jersey Resources (NYSE:NJR). This list includes the biggest losers (SHFL, KOMG, TZOO) as well as some middling performers and the best performer (NTRI).

The new Mid-Cap Watch List is:

midcap watchlist

Finally I present my planned updates to the Large-Cap Watch List. There was a fairly high level of turnover to the list. 14 of the 26 names from the previous run made it to the current list, which was only 25 names. Performance-wise, the list created in March has returned an unweighted average return of 3.8% through June 28, with 64% of the stocks in positive territory.

So without further ado, the names on the chopping block from the previous list are: Steel Dynamics (NASDAQ:STLD), NVR (NYSE:NVR), RWE AG (OTCPK:RWEOY), Sierra Health (SIE), Sallie Mae (NYSE:SLM), Moody’s (NYSE:MCO), TJX Companies (NYSE:TJX), Abercrombie & Fitch (NYSE:ANF), IMS Health (RX), Oracle (NASDAQ:ORCL), CH Robinson (NASDAQ:CHRW) and PG&E (NYSE:PCG). Sallie Mae was one of the portfolio’s bigger winners due to its pending buyout.

The new Large-Cap Watch List is:

large cap watch list

I will continue to track all my watch lists on StockPickr.