Singular Research Director’s Letter : December 2017

A solid year for large caps small caps continue to lag.

The Singular Research coverage list out performed up 1.64% in the month of December. Still, this was not enough to catch up to the strong outperformance again registered by large caps. With growth lead value by a stunning 13% in most asset classes.  The Singular list was up 7.3% trailing the Russell in S&P due to its micro-cap value Focus.

SINGULAR MONTHLY PERFORMANCE STATISTICS

 

Last Month

YTD

Trailing 12 Mo’s

SINGULAR LIST

1.64%

7.30%

7.30%

S&P 500

0.98%

20.79%

20.79%

RUSSELL 2000

-0.56%

13.17%

13.17%

 

The silver lining for micro and small caps may have been the Trump Administration and Congress’s passage of the tax cut package which should benefit small caps on the margin more than big caps providing a basis for outperformance in 2018.

The Singular Research list was led by Clear One (CLRO) up 26.9% in December. After falling to book value from a very oversold condition CLRO benefited in anticipation of patent awards for its video and audio technology. Gray Television   (GTN) bounced 16.3% up from its large secondary stock offering that was used to pay down debt. Stamps.com (STMP) rose 11.6% in anticipation of a strong Christmas selling season.

 
Symbol Rating Target Month Return
CLRO BUY  $  13.00

26.9%

GTN BUY  $  18.00

16.3%

STMP BUY  $250.00

11.6%

 

Laggards were led by Biolase (BIOL), down 14%, which may be due to heavy tax loss selling as the stock has underperformed in 2017. Control 4(CTRL). was down 10.5%, likely some profit-taking consolidating a more than 200% move up from early February this year. 

 

WORST PERFORMERS FOR THE MONTH
 
Target Month Return
 $ 2.00

-14.0%

 $ 28.00

-10.5%

 

WORST PERFORMERS FOR THE MONTH
       
Symbol Rating Target Month Return
BIOL BUY  $    2.00

-14.0%

CTRL SELL  $  28.00

-10.5%

 

Thank you for your continued confidence and support as we will continue to seek to uncover the forgotten, the forlorn and the misunderstood in 2018. Hail to Alpha.

 

Singular Research