A Small Cap Value Earnings Portfolio

by: Scott's Investments
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
OTCPK: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

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