According to the Census Bureau ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES:

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for August, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $377.6 billion, an increase of 0.3 percent (±0.7%)* from the previous month and 3.7 percent (±0.8%) above August 2006. Total sales for the June through August 2007 period were up 3.8 percent (±0.5%) from the same period a year ago. The June to July 2007 percent change was revised from 0.3 percent (± 0.7%)* to 0.5 percent (± 0.2%).

The 3.7% year/year gain is an improvement from 3.2% in July. Still, looking at the longer-term trend it is too early to call an improvement. Furthermore, with CPI running 2.4% year/year the real retail growth is still pretty light.

I’m sticking to my previous characterization: Good but deteriorating.

EconomicData

With the end of the first quarter approaching, it is time to adjust the names in my Watch Lists. I will price all the new lists as of the close on Friday, June 29.

Today I present my planned updates to the Small Cap Watch List. There was a fairly high level of turnover to the list. 12 of the 24 names from the previous run made it to the current list, which was also 24 names. Performance-wise, the list created in March has returned an unweighted average return of 2.6% through June 28, with 80% of the stocks in positive territory. All of the money-losers from the previous list fell out of consideration.
So without further ado, the names on the chopping block from the previous list are: PW Eagle (PWEI), Insteel Industries (IIIN), Allied Defense (ADG - Annual Report), Hartmarx (HMX), Parlux (PARL), Hansen Natural (HANS), FirstFed Financial (FED), Young Innovations (YDNT), ITT Educational (ESI), Rent-a-Center (RCII), Valassis (VCI), and Travelzoo (TZOO). The castaways include four of the five money losers from the previous portfolio (HMX, PARL, YDNT and TZOO) as well as the biggest gainer (ESI).
The new list is:

I will continue to track both lists on StockPickr.