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Sunday, June 14, 2009

Small-Cap 'SuperList' - three stocks exploding to the upside

Time for another custom "SuperList" stock screen from the TradeRadar database.

Today's stock screen starts by looking at stocks that have shown EPS growth. They have sequential quarter-over-quarter growth as well as year-over-year growth. There are currently 617 stocks that meet that criterion.

The list below, however, took that sample of 617 and whittled it down by looking only for those stocks that are currently on both the Trend Leaders list and Bollinger Band Breakout list for this weekend. These stocks are exploding upward.

SymbolNameLast PriceMarket Cap
MFWM & F WORLDWIDE CORP.$25.74$497,600,000
ATNIAtlantic Tele-Network, Inc.$38.46$585,700,000

What's driving the gains in these stocks?

For ATNI, it is acquisition news. The company, a cellular system operator, is buying certain wireless properties from Verizon, including wireless spectrum licenses and network assets, serving over 800,000 subscribers primarily in rural areas across Georgia, North Carolina, South Carolina, Illinois, Ohio, and Idaho. Verizon is being driven to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The stock market apparently loves this deal. ATNI increases their size and scale, increases revenue diversification and subscriber base. The deal increases ATNI's U.S. footprint significantly and was apparently done at a reasonable price.

It is more difficult to determine why MFW is breaking out. Back on May 8, the company reported blowout earnings with net income for the first quarter of $51.3 million or $2.64 per share, compared to $12.5 million or $0.58 per share in the year-ago quarter. Since then the stock has moved marginally upward but this week saw huge moves on Thursday and Friday as the stock surged above its 200-day moving average. It isn't like the company is in some currently sexy business. They print checks for bank customers, supply software for financial institutions and, oddly, licorice products for tobacco and food or pharmaceutical processors. Maybe this is a delayed reaction to great earnings.

Finally there is Sotheby's (BID). The company is well known as an auctioneer of fine art, antiques and decorative art, and jewelry and collectibles primarily in the United States, the United Kingdom, the People's Republic of China, and France. With this stock, there isn't one big event that is driving the stock price. It appears to be an accumulation of news that is reassuring investors. For example, there have been several auctions that went well recently. Investors may also be focused on early signs of an overall economic recovery which should translate into improved sales for luxury goods vendors such as Sotheby's.

So here is our list of stocks with surging stock prices but with fundamentals that may actually justify the price gains. It could be worth keeping an eye on these guys.

Disclosure: no positions

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