I'm not a professional investor by any means, but I do a fair bit of homework. Over the past year or so, a few conservative investment companies I do business with have pointed out the imbalance between the performance of higher-capitalization companies and the smaller guys. Granted, they're not looking as small as the microcaps. But I see study after study showing that the top 25 (in market-cap) S&P 500 companies account for an outsized gain in performance, with a huge relative under-performance by the smaller-cap companies. These relatively conservative folks also suggest that this imbalance will not exist forever. I also read recently (maybe in Bus Week) that the world-wide money flows coming from overseas and are going into the known names: Coke & Gillette & so on, the same way the managers of the big inflows of $ into 401Ks have already gone into the big liquid stocks. To make a long story short, my gut feel is that for anyone with a longer-term perspective (ie patient to let these imbalances even out) we will see a more fair valuation of solid companies like HTEK, CMED, XGNT and so on, and the more speculative but potentially explosive ones like PCTR, SCMS, VETX. It sometimes gets discouraging to hold a co like HTEK earning $1/share, or VETX forecasting .20 for the next 6 months, but if ever "staying the course" is required now may be the time. Again, all IMHO.
Max |
