The SmallCapInvestor.com Top 25 Composite is a computer-generated ranking of the leading stocks in the small cap universe. Rankings are based on a stocks fundamentals, projected growth rates, institutional sponsorship, and technical trend lines. This composite is comprised of stocks that are showing an increasing relative strength to the Russell 2000. As a result, this index should outperform the Russell over long periods of time. A company's inclusion in the ranking should not be viewed as a recommendation.

Decliners led advancers 18:7.

Stocks showing leadership:

- DROOY
- IMA
- IAG

The SmallCapInvestor.com Top 25 Composite lost about 2% over the past week. Despite the losses last week, the composite beat the Russell 2000 which lost over 4.5% last week. Our index continues to be overweight gold miners. Gold alone is showing strength in the market. Decliners led advancers 18 to 7 in the SmallCapInvestor.com Top 25 last week suggesting a bearish trend in the markets. We did manage to capture a few nice gainers despite the volatility in the stock market. Leading the list last week was DRD Gold (Nasdaq:DROOY), IAMGold (NYSE:IAG), and Inverness Medical Innovation (NYSE:IMA), up 9%, 6% and 5% for the week.

This week we maintain our overweight in gold and healthcare. We are avoiding materials and financial related stocks. We expect massive volatility this week with a chance of testing the November lows of 2008.

Here are the top 25 stocks for the week of February 17, 2009...

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