Something for IDX to ponder be it NASDAQ or AMEX,
Small-cap techs get rocked
Niche technology companies trading on the Nasdaq find troubled times
"A niche player is going to have to demonstrate sound fundamentals to attract money," said Anthony Vendetti, vice president and senior healthcare service analyst for Gruntal & Co. "If their track record is a problem, they're going to have difficulty attracting investors. Investors are becoming much more selective when it comes to small caps, and justifiably so. If you don't do your homework, you could be in for a big surprise."
Not only are investors being more selective, one analyst said, but they're changing the rules of the game, effectively leaving many niche technology companies hung out to dry. "When a small cap names some kind of disappointment, there tends to be a loss of sponsorship, especially for a company under $200 million," said Thomas Carley, a research analyst at Jensen Securities. "Institutional investors don't care. Their definition of a small cap is probably a $500 million market cap right now."
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