Stay informed with free updates Simply sign up to the Artificial intelligence myFT Digest — delivered directly to your inbox. Artificial intelligence companies that have spent billions of dollars building so-called large language models to power generative AI products are now banking on a new way to drive revenues: small language models. Apple, Microsoft, Meta…
Fotofantastika/iStock Editorial via Getty Images My last article about Bayer AG (OTCPK:BAYZF) (OTCPK:BAYRY) was published only about two and a half months ago, but as this seems to be a turbulent (and interesting) time for Bayer, I will provide another update. Not only did Bayer report first quarter results on Tuesday, but about three weeks…
Luis Alvarez I have a terrible confession to make, dear readers: I’m ageing. It’s as much of a shock to me as it is to thee. Anyway, among the behavioural changes such unpleasantness demands is a slight change to my investment philosophy. I’m now focusing on buying dividend paying stocks, and I’ll be limiting myself…
gbrundin/iStock via Getty Images The stage could be a set for a recovery in small- and mid-cap stocks. Why? If interest rates have peaked and a pattern of lower interest rates emerges over the next few years, it should bode well for small-cap stocks. Lower interest rates can lower financing costs and loosen up the…
MarekUsz/iStock via Getty Images By Albert Grosman & Brian Lund, CFA Picking the Right Odds, Not the Right Horse Market Overview Spotting a secular trend and identifying the winners, as many small cap investors are trying to do with AI- and bitcoin-related beneficiaries, is a time-honored investment strategy that has made investors a lot of…
syahrir maulana IWO strategy iShares Russell 2000 Growth ETF (NYSEARCA:IWO) started investing operations on 07/24/2000 and tracks the Russell 2000 Growth Index. It has 1065 holdings, a 30-day SEC yield of 0.50% and an expense ratio of 0.24%. It is a direct competitor to Vanguard Russell 2000 Growth ETF (VTWG), which tracks the same index….
Jordan Feeg By Garey J. Aitken, CFA, & Michael Richmond, CFA Upgrading Portfolio Quality into Strength – Market Overview After nearly two years of managing through steadily higher policy rates and regular prognostications of economic troubles, investors clearly expected 2024 to be a transition year. Rather than a change, the first quarter of 2024 looked…
MoMo Productions/DigitalVision via Getty Images Introduction This article covers the Schwab Fundamental U.S. Small Company Index ETF (NYSEARCA:FNDA) (the “Fund“), a passively managed exchange-traded fund (“ETF“) managed by Charles Schwab Investment Management, Inc. (the “Fund Sponsor“). Awarded three-stars from Morningstar, the Fund boasts a low expense ratio (0.25%) and above-average relative performance. Notably, the Fund…
Hiraman By Jeffrey Bailin, CFA & Aram Green Benchmark Concentration Even More Severe in Small Growth Market Overview Entering 2024, we were hopeful that, after a year of extreme relative underperformance versus large cap peers, conditions were aligning for a broadening market more favorable for small cap stocks. Thus far, it has been more of…
SusanneB By Mark Barnes, PhD & Indhu Raghavan, CFA The relative performances of large-cap equities to small-caps in developed and emerging regions have tracked one another for the better part of the last decade. However, around early-2021 they began to diverge. Since then, developed large-caps have outperformed their small-cap counterparts, while in the emerging region,…
da-kuk Glamor stocks thrived early in 2024. The Information Technology sector and just about anything AI-related soared through mid-February. A rotation then took place under the market’s surface. Value and cyclical industries took charge; Energy and Financials, along with Communication Services, posted the best Q1 sector returns. In all, the Nasdaq 100 underperformed the S&P…
syahrir maulana 2024 has been a year of return dispersion among various US small-cap ETFs. The Vanguard Small-Cap Index ETF (VB) has performed the best, up 5% in YTD total return through intraday price action on Friday, March 22. The Russell 2000 Small-Cap ETF (IWM) is higher by nearly 3%. Flat on the year, however,…
Dimensions/E+ via Getty Images Agilysys, Inc. (NASDAQ:AGYS) is in the business of making experiences for many travelers around the world smoother and more efficient. AGYS is in the sweet spot between growth and profitability, with 21% revenue growth combined with a solid 13% EBITDA margin. In the current environment, the focus continues to be on…
MarsYu By Mike Larson, Editor-in-Chief, MoneyShow Mish Schneider, Chief Strategist at MarketGauge.com and Kenny Polcari, Chief Market Strategist at SlateStone Wealth share their take on stocks, sectors, commodities, and more. Transcript Mish Schneider’s Market View Larson – Hi there. I’m Mike Larson, Editor-in-Chief with MoneyShow. And I’m coming to you from the Las Vegas Money…
isak55/iStock via Getty Images Shares of small companies and value stocks have had a tough time keeping up with the broad market in recent years, and the headwind for these risk factors is still blowing so far in 2024. By contrast, the momentum factor (MTUM) has surged nearly 17% so far this year, dramatically outperforming…
tadamichi Commentary In 2023, the Polen Capital U.S. Small Company Growth Composite Portfolio (the Portfolio) returned 10.46% gross and 10.22% net of fees compared to a 12.75% return for the Russell 2000 Growth Index. In many ways, we believe it served as a testament to the resilience of our investment strategy amidst constant and severe…
Get ahead of the market by subscribing to Seeking Alpha’s Stocks to Watch, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports and conference presentations. Stocks to Watch subscribers can also tune in on…
Nancy Anderson The Basic Story: Vitesse Energy (NYSE:VTS) is a small cap, non operated Bakken player with a lightly levered balance sheet and a high base dividend yield. The dividend here is a priority. The company has already guided to low double digit growth in 2024 and we expect that to be reaffirmed with their…
nazar_ab/E+ via Getty Images “In the short run the market acts as a voting machine; in the long run it becomes a weighing machine.” – Ben Graham Innergex (TSX:INE:CA)(OTCPK:INGXF) is a company we have been following for several years now, and the last time we wrote about them was in May 2023, when we upgraded…
kevron2001/iStock via Getty Images The S&P 500 and Nasdaq 100 ended 2023 back in a bull market. Their price indices surpassed their previous 2021 peak levels and showed clear positive trends even with recent volatility. However, while large-cap performance has been solid, smaller companies have gone nowhere. The Russell 2000 ETF (NYSEARCA:IWM) is unchanged YoY…
shapecharge 4Q23 Market Overview Global financial markets rallied in 4Q, with small cap stocks leading the way. Dovish FOMC commentary driven by lessening inflation concerns drove the stock market higher. Interest rates declined and expectations for a soft landing increased as recession fears faded. The FOMC stayed the course with no changes to interest rates…
Aerial_Views/iStock via Getty Images Alexander’s, Inc. (NYSE:ALX), founded in 1928 and headquartered in Paramus, NJ, is a REIT that owns, (re)develops, leases, and manages 5 retail properties in New York City through its manager, Vornado Realty Trust (VNO). The REIT’s operating performance is concerning and there are many risks here, with a potential dividend cut…
gustavofrazao/iStock via Getty Images One little-known bank that we hold-rated in 2023 is Parke Bancorp, Inc. (NASDAQ:PKBK). The stock fell heavily with regional banks, but now has round-tripped over the last year. At this point, we think the bank is performing well. It is a small stable bank with a moderate yield. We continue to…
Paul Panayiotou/Corbis Documentary via Getty Images We are hardly the first ones to point this out, but UK stocks are looking very cheap, especially when compared to current valuations in the United States. Still, when we look under the hood, we don’t particularly like what we see. There are a lot of stagnant financial companies,…
jxfzsy By Doug Young Offshore Chinese stocks may not be getting off to the best start this year, but don’t blame it on the regulators. China will “steadfastly promote the opening of China’s capital market and work together with all parties to further improve the overseas listing mechanism,” Fang Xinghai, a vice chairman of the…
Oleksandr Shatyrov In what has seemingly become a rite of passage in the evolution of the industry over the last year, Bit Digital, Inc. (NASDAQ:BTBT) recently became yet another Bitcoin USD (BTC-USD) mining company to start investing in building data centers for “artificial intelligence.” Bit Digital is one of the public companies in the crypto…
Matteo Colombo Introduction I have to say, chances are I’m not the world’s biggest fan of Crown Castle (NYSE:CCI) stock. The telecommunication real estate giant with a market cap of roughly $50 billion is not growing very fast. Full-year 2023 adjusted funds from operations (“AFFO”) are expected to grow by 2%, followed by an 8%…
Nastco By Albert Grosman and Brian Lund, CFA Keeping Disciplined Amid Low-Quality Rally Market Overview Once upon a time, financial market prices were somewhat tethered to fundamental value. Sure, there were occasional bubbles or manias here or there, in tulips or regional shipping companies or internet stocks, but those were generally isolated to individual asset…
RomoloTavani SDVY strategy First Trust SMID Cap Rising Dividend Achievers ETF (NASDAQ:SDVY) has a portfolio of 100 stocks, a 12-month distribution yield of 2.26%, and a total expense ratio of 0.60%. Distributions are paid quarterly. It started investing operations on 11/1/2017 and tracks the Nasdaq US Small Mid Cap Rising Dividend Achievers™ Index. As described…
syahrir maulana Investment Thesis Vanguard’s Small-Cap Growth Index Fund ETF Shares (NYSEARCA:VBK) warrants a buy rating due to the macroeconomic environment for small-cap growth heading into next year, the fund’s specific qualities compared to peers, and multiple promising holdings contained within the fund. While VBK is not the highest-performing small-cap ETF historically, the fund is…
da-kuk Dear readers/followers, Years ago, I actually held significant positions in Atea (OTCPK:ATAZF) across my portfolios. The company offers an appealing, non-trivial yield and an upside for the IT markets in the home nation where I live, the area of Scandinavia. The company’s annual sales exceed 45B NOK, with a current EBIT margin of between…
pick-uppath/E+ via Getty Images The S&P SmallCap 600 Index [Small Cap index] tracks the performance of 600 of the U.S. companies that have a market capitalization [cap] between $850 million and $5.2 billion. Typically, a market value between $250 million and $2 billion falls under the small cap umbrella, while a mid cap’s market value…
YinYang An Alternate Option It’s no secret a large majority of the market includes large cap, tech, and growth stocks. I personally believe these companies are overvalued and am in search of better deals. One of my favorite plays for 2024 is factor-based investing in small cap value stocks and ETFs. A great play for…
Chunumunu One small Asian issuer went public in the US this past week, ahead of the Christmas holiday. Japanese e-commerce firm Linkage Global (LGCB) priced at the low end to raise $6 million at an $86 million market cap. Operating through entities in Japan, Hong Kong, and mainland China, Linkage offers a system comprised of…
tang90246/iStock via Getty Images Summary I have long perceived the small-cap world as an asset class with far greater potential returns and volatility or Beta since companies in this area are more susceptible to macro drivers and disruptions. I have frequently focused my investment attention on the Russell 2000 as a broad index to gain…
deepblue4you The NFIB unveiled its latest look at small business sentiment early Tuesday morning. The headline number remains in the bottom decile of its historical range, falling 0.1 points to 90.6 in November. That is compared to expectations which called for the number to be unchanged last month. Across the categories factoring into the index,…
2d illustrations and photos Just one small IPO priced this past week, joined by one SPAC that began trading. Three IPOs joined the pipeline, including one that plans to raise $100 million, as well as four SPACs. The sole pricing this week was steel framing manufacturer INNO HOLDINGS (INHD), which priced at the low end…
skegbydave With a slowing economy that might be on the verge of a recession, quality stocks are shining. Quality stocks have strong balance sheets and hence low default risk. When the economy slows down this is a valuable feature. In such an economic backdrop the Fed normally stops hiking rates and in such a rate…
NickyLloyd/E+ via Getty Images Kyowa Kirin Co. (OTCPK:KYKOY) is buying Orchard Therapeutics (NASDAQ:ORTX) at $16 per share and a CVR of up to $1. The stock is trading at a small premium to the cash takeout. These are financial instruments that are used in mergers and acquisitions. They represent a right to possible future payments…
porcorex Despite expectations of some major post-Thanksgiving launches, just two small Asian issuers listed in the US this past week. Hong Kong-based financial services firm Garden Stage (GSIW) offered more shares and priced at the low end to raise $10 million at a $64 million market cap. Through its subsidiaries, the company provides placement and…
syahrir maulana US small caps are experiencing an autumn stock market rally, but they continue to be heavily impacted by interest rate sentiment. Year to date, the Russell 2000 index has increased by 2.07%. Over the past week, however, the index has grown by 5.41% and over the past month by 7.92%. Despite this impressive…
syahrir maulana On 14 November, the Russell 2000 (IWM) had what I refer to as a “Power Day” – returning more than 5% in a single day. In this case, the index returned a whopping 5.48%, compared to the S&P 500’s 1.91%. Since 2000, there have only been 29 days where the smallcap index has…
wombatzaa/iStock via Getty Images No doubt, after the iShares Core S&P 500 ETF’s (IVV) 2.21% decline in October, which was preceded by an even more painful September when it was down by 4.7%, equity investors finally breathed a sigh of relief as the S&P 500 index has just delivered the best week of 2023 to…
syahrir maulana This article series aims at evaluating ETFs (exchange-traded funds) regarding the relative past performance of their strategies and metrics of their current portfolios. Reviews with updated data are posted when necessary. SLYV strategy and portfolio SPDR S&P 600 Small Cap Value ETF (NYSEARCA:SLYV) started investing operations on 9/25/2000 and tracks the S&P SmallCap…
imaginima The last time I wrote about Limbach Holdings (NASDAQ:LMB) was June 28, 2023, and since then my bullish call has held up well as far as I can see: Seeking Alpha, my previous call on LMB In the meantime, the company has reported its Q2 results and will also submit its Q3 report in…
MicroStockHub I have been growing increasingly skittish on owning smaller companies in my personal portfolio, and have written fewer articles on such stocks as 2023 has progressed. I made a Sell call on the iShares Russell 2000 ETF (NYSEARCA:IWM) in March here. The problem is smaller names traditionally are quite weak relative to blue chips…
wildpixel The Oakmark International Small Cap Fund (OAKIX, “the Fund”) returned 37.05% for the fiscal year ending September 30, compared to its benchmark, the MSCI World ex U.S. Small Cap Index (net), which returned 17.32% for the same period. The Fund returned -3.10% for the quarter, compared to the MSCI World ex U.S. Small Cap…
Shutthiphong Chandaeng Investment Thesis PubMatic (NASDAQ:PUBM) is a company that went public in 2020, capitalizing on the strong appetite for risk in the market at the time. However, since its IPO, the share price has declined by 50%, primarily due to the overvaluation at which it was initially listed, compounded by its poor performance in…
Ultima_Gaina Bar Harbor Bankshares (NYSE:BHB) is a small cap regional bank based in the touristy town of Bar Harbor, Maine, and operates over 50 branches across Maine, New Hampshire, and Vermont. Bar Harbor’s adjacency to Acadia National Park makes it a frequent stop for cruise ships in the summertime, and the town bristles with tourists…
spawns/iStock via Getty Images WisdomTree U.S. Value Fund ETF (NYSEARCA:WTV), a shareholder yield-centered actively managed fund, has been mostly a disappointment since my previous coverage back in February 2023 as it has not lived up to bullish expectations and underperformed the S&P 500 index amid the growth rotation. Today, I would like to provide an…