Beware These Small-Cap Stocks in October

RMBS and RTEC are two semiconductor stocks at risk, if past is prologue

Sep 29, 2017 at 2:38 PM
facebook X logo linkedin


In a month that's typically cruel to stocks, small-caps have been on fire, with the Russell 2000 Index (RUT) hitting a record high again today. And while we recently looked at the best small-cap stocks to buy in the month of October and in the fourth quarter, today we decided to take a look at some that bulls may want to avoid in the short term. Below is a list of the 25 worst small-cap stocks for the next month, if past is prologue, including two semiconductor names: Rambus Inc. (NASDAQ:RMBS) and Rudolph Technologies Inc (NYSE:RTEC).

To populate our list, Schaeffer's Senior Quantitative Analyst Rocky White used the following criteria: RUT stocks as of October 2016; optionable stocks; and stocks with at least eight years of data. The data goes back 10 years.

worst RUT stocks october


Since falling to an annual low of $11.30 on July 6, RMBS stock has managed to win back nearly 18% in the past three months. However, the shares have struggled to overtake the $13.40-$13.60 area -- where Rambus stock was trading before a late-January bear gap.

RMBS has ended the month of October in the black just 20% of the time over the past decade, averaging a loss of 5.51%. From the equity's current perch of $13.43, another 5.51% drop would place Rambus shares around $12.69 -- below support from its 40-day moving average.

RMBS stock chart



Rudolph Technologies stock has rallied nearly 18% in September, last seen trading at $26.10 -- on pace for its highest close since its mid-June 13-year highs. However, if past is prologue, RTEC shares could be due for a breather in October. The equity has ended the month higher just 30% of the time over the past 10 years, averaging a loss of 9.56%. A similar pullback over the next few weeks would have RTEC stock at $23.60

RTEC stock chart

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI