This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Small-Caps at Risk From Shaky Earnings

Stocks in this article: VVTVDAKTLZBSIGMKKDRGS

MINNEAPOLIS ( Stockpickr) -- The market had a relatively orderly retreat last week and that should have investors nervous. Sure volatility exploded as stocks fell, but I did not get the sense of real panic selling by investors. That perceived complacency puts us at risk for further losses.

What we are seeing Monday is an adjustment to stock market value given the expectation of smaller cash flows. I've been most worried about the sensationalist nature of a market correction becoming a self-fulfilling prophecy, and yet that is what I think we are getting when it comes to the future of the economy.

With policy responses limited by a debt strapped national government and zero interest rates of the Federal Reserve what is out there to save us? I'm honestly not sure. As such selling in the market of late actually makes some sense.

One group of stocks getting hit particularly hard is the small-cap space. A small company that disappoints the market can be pummeled. One of the stocks I follow, ValueVision (VVTV) lost some 30% of its value last week after reporting profit results that fell short of expectations. Particularly troubling is the fact that the losses came on the heels of a stock that was already down hard.

Related: 5 Rocket Stocks to Buy for Another Volatile Week

In this market environment there are plenty of other small-cap stocks that could be vulnerable to a collapse in share value. Here are 5 small-cap stocks that could lose a ton should the numbers fail to impress.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs