Over what has been a fairly up and down summer that has left the Bowser Microcap Stock Index fairly flat, the past two weeks have broken the cycle. On June 28, the Index closed at 516.28. One week later (July 05), it closed at 555.50, representing a weekly gain of 39.22 points, or 7.6%. Most recently, the Index posted a closing value of 579.62 (on July 12), a weekly gain of 4.3%. Over those two weeks, the Microcap Index jumped 12.3%, far out-gaining major indexes.
Leading the way for the Bowser Index were companies like Alliance Fiber Optic Products Inc. (AFOP). Alliance Fiber Optic represents 3.7% of the Index's total capitalization--ranking as the eighth largest company in the Index. Over the past two weeks, AFOP has appreciated 53.5%--from $20.01 to $30.71. This appreciation contributed heavily to the Microcap Stock Index's total gain.
Compared to other Indexes, the Microcap Stock Index far exceeded the major indexes. The following table shows the major indexes' gains over the past two weeks.
| Dow Jones | S&P 500 | NASDAQ Com | Russell 2000 | Bowser Index | |
| 06/28-07/05 | 1.5% | 1.6% | 2.2% | 2.9% | 7.6% |
| 07/05-07/12 | 2.2% | 3.0% | 3.5% | 3.1% | 4.3% |
| 06/28-07/12 | 3.7% | 4.6% | 5.8% | 6.0% | 12.3% |
As shown in the table, the Bowser Index not only out-gained each other index week to week, but it also more than doubled each index's total gain over the entire two week period. With the Russell 2000 in second, smaller stocks appear to have had a stronger two weeks.
So far, the Bowser Microcap Stock Index's July has been one for the books, illustrating small stocks' recent run. Whether or not this momentum will continue relies on a number of factors. As Bowser stocks continue to make individual strides, investors develop confidence, driving up stock prices and thus the Microcap Index's value.
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The Bowser Report is a monthly financial newsletter that specializes in small stocks trading for $3/share or less. Our goal is to provide the individual investor with relevant information on microcap stocks. Each month, we recommend a new company, provide information on past recommendations and report news surrounding the microcap marketplace.
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Information in this blog post contains references to past Bowser recommendations. This blog post contains no recommendations, and instead relies on data gathered on past recommendations from sources thought to be reliable.
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