I have recently received a correspondence from one, Mr. Will,
who can not post here, and, therefore, asked me to forward the
following information to this thread. Since the content of his
letter may be of some interest to Brinker's followers, I have
taken the liberty of reprinting his letter in toto. My action
does not constitute either an endorsement or repudiation of
the ideas set forth here and is motivated purely as a courtesy
to Mr. Will, who took the time and trouble to write. To wit,
Begin letter:
These are excellent articles for your Brinker thread. You should
post them there. I cant because I am not a paying member of SI.
Very interesting two part series on the possible small cap
stock revival...
Why small-caps are still suffering
The answer, in many cases, is liquidity - but analysts
say the situation will change soon
Part one of a two-part special report
By Michael Brush
moneydaily.com
Small-cap stocks rallied Thursday as the Russell 2000
Index tacked on better than a half a percent to close at
451.74. But by any measure, these small fry are still in the
dumps.
Indeed, investors have been hammering small-cap stocks
so badly in the past month that they're at levels not seen
since the bleak days of last two major market corrections
in 1990 and 1987, if you measure by trailing price-earnings
ratios.
The rest of the article is here:
pathfinder.com.
==========================================
And Part Two:
Analysts say small-caps are poised for
recovery
Here are the catalysts that could bring it about
Second in a two-part special report (see part one)
By Michael Brush
moneydaily.com
In a market where a lot of fund managers don't want to
mess with any stocks they can't exit quickly in case there
is a market crisis, small-cap stocks are suffering. In fact,
because of their relative illiquidity, small-caps are at their
lowest valuation levels since 1990.
Does that mean they are a bargain right now? "I think it is
worth noting that these valuation levels have always been
followed by a strong rally for the group," says L. Keith
Mullins, a small-cap stock analyst with Salomon Smith
Barney.
pathfinder.com
End of letter |
