Here is some info I found on Small Cap Investor News that may have contributed to this new buying opportunity for us...
Index performance for the week ending December 12:
Stocks were down sharply this week, led by the Nasdaq Composite and the MicroCap50, which were both off by more than 5%. The Dow Jones Industrial Average lost 310.83 points, offsetting most of last week's 326 point gain.
The MicroCap50 plunged another 44.89 points (5.51%) this week to close at 770.20, its lowest level since August. This is the seventh weekly decline in a row for The MicroCap50, which is down 20% in those seven weeks. The MicroCap50 is now up just 11.52% in 1997. As recently as October 24, The MicroCap50 was up 39.44% in 1997.
The Russell 2000, a smallcap stock index, fell 15.43 points (3.52%) this week to close at 422.63. The Russell 2000 is up 16.55% this year.
The Dow Jones Industrial Average sank 310.83 points this week (3.81%) to close at 7838.30. Last week, the Dow had its largest weekly point gain since the week ending June 13. This week, the Dow had its largest weekly point drop since the week ending August 15 when it fell 336.56 points. The DJIA is up 21.56% in 1997.
POSSIBLE REASONS FOR THE MAJOR WEAKNESS IN MICROCAP STOCKS RECENTLY:
- Tax related selling
- Investors who were buying MicroCaps when they were hot a few months ago may be bailing out of MicroCaps now that they are very cold.
- The bad publicity surrounding MicroCaps after the HealthTech and alleged Mob manipulation story broke recently.
- More worries about MicroCap stocks in general after the NASD decided that OTC Bulletin Board companies that don't file with the SEC should be removed from the OTC Bulletin Board. Basically, most of the publicity that MicroCap stocks have received recently has been bad, and MicroCap stocks as a group have probably suffered because of it. |
