| While some Wall Street herds may be stumbling over | | | | $0.01 and $5.00. The company's objective |
| themselves to gobble up the record setting Dow | | | | methodology ensures benchmarks that reflect a true |
| index, the numbers show that bigger is not always | | | | representation of actual market activity. |
| better. | | | | And, like their small-cap and micro-cap peers, Davren's |
| The Russell 2000 Growth Index, which consists of | | | | Penny Stock Index covers various economic sectors |
| fast-growing small cap companies, gained 6.5% in | | | | and industries and is constructed to provide a |
| October. | | | | comprehensive and unbiased barometer to penny |
| "As the record setting Dow grabbed most of the | | | | stock performance. |
| headlines in October, investors turned once again | | | | So, how have true penny stocks been performing as |
| toward small caps and micro caps," said one senior | | | | of late? Quite well. |
| research analyst at Russell Investment Group. | | | | The index had been drifting lower since hitting a |
| He noted that all of Russell's benchmarks that | | | | 52-week high on September 1; but that trend seems |
| measure small-cap and micro-cap segments of the | | | | to be reversing itself. Since the beginning of |
| market including growth and value, outperformed | | | | November, The Penny Stock Index is up a solid 4%. |
| every Russell large-cap and mid-cap index last month. | | | | And recent economic factors indicate that the penny |
| The worst performing index, the Russell Top 200 | | | | stock market could continue its bullish trend. A |
| Value Index, which consists of mega-cap value | | | | number of mergers and acquisitions coupled with |
| stocks, gained 3.0%. The Russell 2000 index, a widely | | | | strong economic data eased inflation worries and |
| used benchmark for small-cap stocks, had a return of | | | | raised optimism about consumer spending. |
| 5.8% last month. | | | | More specifically, Wal-Mart Stores Inc., the world's |
| Keep in mind; the average market cap for the Russell | | | | largest retailer, pleased Wall Street with |
| small-cap stocks is a brawny $1.16 billion. For many | | | | higher-than-expected third-quarter earnings despite |
| investors, those kinds of stocks are way out of | | | | weakening U.S. sales growth. Why are Wal-Mart's |
| reach. | | | | earnings so important? |
| To get a better look at how true micro-cap and | | | | Wal-Mart tends to be a reliable gauge as to the |
| penny stocks have been performing, one can refer | | | | spending patterns of the average American. And the |
| to the Penny Stock Index, found at Davren Penny | | | | average American is the economic engine driving the |
| Stocks. | | | | country. Or at least, more of a litmus test than those |
| Davren has created the world's only penny stock | | | | lilting down the aisles with pooch in tow at Chanel or |
| index. The index follows the activity of a large | | | | Bergdorf Goodman. |
| number of diverse stocks that are trading between | | | | |