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Jan 15 2020

Small Cap Quality Check

  • Jan 15, 2020

December’s Of Special Interest provided a recap of our Asset Allocation team’s view of small cap equities, suggesting that small caps had underperformed and reached a valuation discount that made them an interesting contrarian value proposition. Several clients responded with follow-up questions, wondering if the discount valuation of small caps was offset by their typically weaker business models.

Apr 05 2019

Small Cap Biotech Getting Pricey Again

  • Apr 5, 2019

In May 2015, we warned about rich valuations for small cap Biotech stocks and looked at various ways to evaluate those companies, as the majority have no approved drugs on the market, thus no revenue; therefore, valuing these companies using the conventional methodology is problematic.

Feb 07 2014

Earnings Momentum

  • Feb 7, 2014

Up/Down Earnings: Q4 Results Just Below Historical Average. Median Q4 YOY Revenue Comparisons: Strength In Large Caps. Q4 Median Company Earnings Growth: Initial Results Are Impressive

Jan 08 2014

Earnings Momentum

  • Jan 8, 2014

Up/Down Earnings: Q3 Ends Below Average. Median Q3 YOY Revenue Comparisons: Small And Mid Caps Continue Leading. Q3 Median Company Earnings Growth: Mid Caps Continue Leading

Dec 06 2013

Earning Momentum

  • Dec 6, 2013

While the current ratio of 1.37 is relatively weak historically, it is still an improvement from the second months’ readings of Q2 (1.27) and Q1 (1.16).

Oct 08 2013

Earnings Momentum - Q2 Reports Below Average But Ahead Of Q1

  • Oct 8, 2013

With all three months of Q2 earnings reports in, the 1.28 ratio is much stronger than Q1, but remains below the 1.51 historical average ratio.

Sep 10 2013

Q2 Median Company Earnings Growth Rates Vary Drastically Across Cap Size

  • Sep 10, 2013

EPS growth for Large and Mid Cap companies continues exceeding their top-line growth, but Small and Micro Cap companies saw their EPS growth rates coming in below their top-line growth rates.

Sep 10 2013

Q2 Median Revenue Comparisons: Higher Growth Across All Segments

  • Sep 10, 2013

Large Cap result this month is the same as last month, but remains stronger than Q1. Smaller firms reversed course, as Mid, Small, and Micro Caps all rebounded with large sales momentum increases.

Aug 07 2013

Key Observations On Q2 S&P 1500 Earnings

  • Aug 7, 2013

Year-over-year EPS growth rate for companies with Q2 reports (with about 65% in) currently stands at +4.2%, while revenue growth has come in at a better than expected +2.6%.

Aug 07 2013

Q2 Median Company Earnings: Growth Rates Volatile But Positive In General

  • Aug 7, 2013

EPS growth rates are coming in higher than expected. While sales growth remains muted, the ability of companies to do more with less and maintain high operating margins is impressive. Margins are determined at the discretion of management and are thus sticky and unlikely to drop off significantly unless wage pressures resume and slack capacity around the globe is absorbed.

Aug 07 2013

Q2 Median Revenue Comparisons: Higher Growth In Large And Mid Caps

  • Aug 7, 2013

Q2 relative to Q1 growth rates have improved for larger cap companies but deteriorated for the smaller firms.

Nov 04 2011

Demise Of Corporate Tax Revenues? A Look At Trends Of Corporate Tax Vs. Individual

  • Nov 4, 2011

This month’s “Of Special Interest” examines Federal tax revenues from corporations versus individuals. Despite strong revenue and earnings growth, corporations paid fewer taxes this year; all of the government’s revenue increase came from individuals.


Jan 05 2011

Two Quant Themes With Significant Implications For 2011

  • Jan 5, 2011

Two Quant Themes With Significant Implications For 2011. We revisit studies from the past year that focused on Revenue Growth vs. Earnings Growth, as well as Momentum vs. Value.


Feb 02 2010

A Global Perspective: Investor Preference For Earnings And Revenue Risks

  • Feb 2, 2010

A look at earnings and revenue risk to see how the market reveals its preference.


Jan 04 2010

A Global Perspective On Investor Preference For Top-Line Growth Or Bottom-Line Growth

  • Jan 4, 2010

A look at how the market reveals its preference for the top-line growth (revenue growth) vs. the bottom-line growth (EPS growth).

Aug 05 2009

Revenue Revival: The Key To Sustained Earnings Recovery

  • Aug 5, 2009

Jim Floyd examines the revenue growth of the ten broad sectors in this month’s “Of Special Interest”.

Jul 03 2009

The Top Line Story: Which Groups Are Improving, Which Are Deteriorating

  • Jul 3, 2009

Believe it or not, 21 of our equity groups have not yet seen a quarterly decline in revenues. Several early cycle type groups have already experienced four quarters of declining revenues, but the good news is three groups have posted rebounds in revenues as of Q1 2009.