Top 5 Small Cap Companies For 2016

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Following the market opening Wednesday, the Dow traded up 0.07 percent to 18,571.06 while the NASDAQ climbed 0.45 percent to 5,058.95. The S&P also rose, gaining 0.12 percent to 2,166.41.

Leading and Lagging Sectors

On Wednesday, technology shares climbed by 0.94 percent. Top gainers in the sector included Marvell Technology Group Ltd. (NASDAQ: MRVL) and Medidata Solutions Inc (NASDAQ: MDSO).

Top 5 Small Cap Companies For 2016: Agenus Inc.(AGEN)

Agenus Inc., a biotechnology company, engages in developing and commercializing technologies to treat cancers and infectious diseases. It offers Oncophage vaccine for the treatment of adjuvant renal cell carcinoma. The company?s products under development include Prophage series of cancer vaccines, which has been tested in Phase III clinical trials for the treatment of renal cell carcinoma (RCC) and metastatic melanoma, as well as has been tested in Phase I and Phase II clinical trials in various indications; and under Phase II clinical trials in glioma, a type of brain cancer, and adjuvant renal cell carcinoma. The Prophage series of cancer vaccines include R-series candidates in RCC, M-series candidates in melanoma, and G-series candidates in glioma. Its product candidate portfolio includes QS-21 Stimulon adjuvant, which is in Phase III clinical trials for the treatment of non-small cell lung cancer, melanoma, malaria, and shingles, as well as in for the treatment of va rious infectious diseases and Alzheimer?s disease; and HerpV that completed Phase 1 clinical trial for the treatment of genital herpes. The company was formerly known as Antigenics Inc. and changed its name Agenus Inc. in January 2011 to reflect its existing product pipeline. Agenus Inc. was founded in 1994 and is headquartered in Lexington, Massachusetts.

Advisors’ Opinion:

  • [By Lisa Levin]

    Agenus (NASDAQ: AGEN) rose 22.99% to $3.37 after the company reported positive follow-on Phase 2 results for brain cancer vaccine.

    Aeropostale (NYSE: ARO) shares jumped 18.23% to $10.18 after private equity firm Sycamore Partners bought a 7.96% stake in the company.

Top 5 Small Cap Companies For 2016: Tanger Factory Outlet Centers Inc.(SKT)

Tanger Factory Outlet Centers, Inc. operates as a real estate investment trust (REIT). The company, through its subsidiary, Tanger Properties Limited Partnership, engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers. As of September 30, 2005, Tanger owned and operated 33 factory outlet centers in 22 states totaling 8.7 million square feet of gross leasable area. It also provides development, leasing, and management services for its outlet centers. The company has elected to be taxed as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to Federal income taxes provided it distributes at least 90% of its taxable income to its shareholders. Tanger Factory Outlet Centers was founded by Stanley K. Tanger in 1981. The company is headquartered in Greensboro, North Carolina.

Advisors’ Opinion:

  • [By Shauna O’Brien]

    Jefferies announced on Wednesday that it has cut its rating on Tanger Factory Outlet Centers Inc. (SKT).

    The firm has downgraded SKT from “Buy” to “Hold,” and has lowered the company’s price target from $40 to $35. This price target suggests an 8% upside from the stock’s current price of $32.22.

    Analyst Omotayo Okusanya commented: “We expect near-term headwinds for the mall and outlet mall segment as tenant sales growth appears to be slowing.”

    “At SKT, development yields on two projects have also been reduced. Further, rising interest rates negatively impact our DDM-derived PT. Our lowered PT of $35 represents a 10% total return over the next-twelve-months (NTM); we are downgrading to Hold,” added the analyst.

    Tanger Factory Outlet shares were mostly flat during pre-market trading Wednesday. The stock is up more than 5% YTD.

Hot Japanese Companies To Watch For 2016: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Transocean (RIG) has gained 2.8% to $11.35 after getting upgraded to Hold from Sell at Evercore ISI.

    Esperion Therapeutics (ESPR) has tumbled 32% to $11 after the biotech company said it might not be able to win FDA approval for its anti-cholesterol drug based on its cholesterol-cutting ability alone.

Top 5 Small Cap Companies For 2016: Fogo de Chao, Inc.(FOGO)

Fogo de Chao, Inc., incorporated on May 24, 2012, is a holding company. The Company operates Brazilian churrascaria steakhouses under the brand of Fogo de Chao. The Company operates through two segments: the United States and Brazil. The Company is specialized in fire-roasting meats utilizing the Southern Brazilian cooking technique of churrasco. It delivers Brazilian dining experience through the combination of its Brazilian cuisine and its service model known as espeto corrido (Portuguese for continuous service) delivered by its gaucho chefs. The Company offers its guests with entree service table-side, which is available at each guest’s seat, green side up from its gaucho chefs. Each gaucho chef rotates throughout the dining room, and is responsible for a specific cut of meat, which they prepare, cook and serve to its guests throughout their meal. The Company operates over 30 restaurants in the United States and over 10 restaurants in Brazil, and a joint venture restaur ant in Mexico.

The Company’s menu consists of steak, including picanha, filet mignon, beef ancho, alcatra, fraldinha and costela; chicken, lamb and pork, including cordeiro, costela de porco, frango, lombo and linguica; seafood, including smoked salmon, jumbo shrimp cocktail and grilled spiced shrimp skewers; side dishes, including spring pea and asparagus soup, garlic mashed potatoes, caramelized bananas, pao de queijo, farofa, polenta, fogo feijoada and sauces; market table, including edamame roasted corn salad (seasonal), forbidden black rice salad (seasonal), hearts of palm, black pepper candied bacon, chicken salad and cold smoked salmon; desserts, including papaya cream, strawberry cream, caramelized pineapple and chocolate mousse cake, and bar fogo, including picanha sirloin slider, charcuterie board, grilled spiced shrimp skewers, mango refresco and superfruit lemonade. The Company’s menu also includes wines, such as Lapostolle, Merlot; Belle Glos, Pinot Noir; Lapostolle, Merlot, Rapel Valley, and Silver Oak, Cab! ernet Sauvignon.

Advisors’ Opinion:

  • [By Monica Gerson]

    Fogo De Chao Inc (NASDAQ: FOGO) is expected to post its quarterly earnings at $0.28 per share on revenue of $76.80 million.

    Constellium NV (NYSE: CSTM) is estimated to report its quarterly earnings at $0.06 per share on revenue of $1.18 billion.

Top 5 Small Cap Companies For 2016: Nu Skin Enterprises Inc.(NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.

Advisors’ Opinion:

  • [By Scott Rubin]

    Stock gainers included Mercadolibre Inc (NASDAQ: MELI), up almost 14 percent, and Nu Skin Enterprises, Inc. (NYSE: NUS), which added 12 percent. The positive gains in both stocks were due to strong earnings reports. Shares of Liberty Interactive Group (NASDAQ: QVCA) plunged almost 22 percent on Friday due to disappointing sales growth in its fiscal second quarter. Pharmaceutical giant Bristol-Myers Squibb Co (NYSE: BMY) lost 16 percent after a disappointing study involving its Opdivo drug.

  • [By Ben Levisohn]

    Citigroup’s Beth Kite calls Nu Skin Enterprises’ (NUS) earnings and guidance “awfully disappointing.” She explains why:

    “Frustrating” Describes 4Q15 & 2016 Guidance:Nu Skin (i) reported 4Q15 EPS of $0.62, 11 cents below consensus and us, and (ii) lowered 2016 EPS guidance, from $3.25-$3.40 to $2.40-$2.60.Nu Skin had three LTO’s in 4Q152 succeeded and 1 failed. The failure had far less to do with the product than with the sales strategy…

    Is Guidance Too Conservative or Is It Really This Bad? We get that Me failed to sell well in South Korea with the 12-month cartridge commitment. But given the strength in reps globally, the strength of Youth from its two LTOs in 2H15, and good results from Me when sold in Japan without the 12-month commitment, we wonder if guidance is aggressive to the downside. Indeed, the word “conservative” was said a lot by mgmt on the brief earnings call when describing guidance revisions.

    Maintaining Buy: While we now have less confidence in mgmt, from an external perspective, to forecast its results accurately, and from an internal perspective, to course correct quicklyi.e., why didn’t they drop the 12-month plan for Me in South Korea when it so obviously wasn’t workingwe are still confident in Youth & Me. The rep growth in South Asia/Pacific from Youth in 3Q led to better 4Q sales than we’d expected, Youth’s Americas LTO in 4Q drove lc sales up 26% YoY, and Me not only sold through in Japan in 4Q but also drove reps higher. We imagine that investors may have little patience or confidence in Nu Skin for a while, understandably. But the bar seems set fairly low now, so we are cautiously optimistic that Nu Skin can dig itself out of this hole as we go through 2016 and Me & Youth roll out more fully.

    Shares of Nu Skin have tumbled 13% to $27.31 at 2:11 p.m. today.

  • [By Roberto Pedone]

    Nu Skin Enterprises (NUS) is a direct selling company, which develops and distributes personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex brands. This stock closed up 5.4% at $92.96 in Monday’s trading session.

    Monday’s Volume: 2 million

    Three-Month Average Volume: 900,802

    Volume % Change: 85%

    From a technical perspective, NUS ripped higher here right above some near-term support at $85 with heavy upside volume. This move pushed shares of NUS into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance levels at $88.20 to $89.69. This move also pushed shares of NUS above the upper-end of its recent range that saw the stock trend between $82 to just above $89.

    Traders should now look for long-biased trades in NUS as long as it’s trending above support at $85 and then once it sustains a move or close above Monday’s high of $93.33 with volume that this near or above 900,802 shares. If we get that move soon, then NUS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $100 to $105.