Russell 2000 continues slide
April 11 (SmallCapInvestor.com) –Stocks are firmly down in midday trading today following news of a greater-than-expected drop in U.S. gasoline stocks. Among small caps, shares of Methode Electronics Inc. (Nasdaq: METH) fell due to an analyst’s downgrade, while Genaera Corporation (Nasdaq: GENR) lost ground on news it will lay off 30% of its staff.
At 1:30 PM the Russell 2000 had lost 4.07 points, or 0.50 percent, to 810.44. The Dow Jones Industrial Average had shed 53.64 points, or 0.43 percent, to 12,520.21.
Shares of Methode Electronics are falling following news the component devices manufacturer has been downgraded by analyst Robert W. Baird & Co. The Harwood Heights, Ill.-based company’s stock has been downgraded to “underperform” from “neutral,” Robert W. Baird said before the start of trading. The brokerage cited risks with Methode’s changing business model. Shares are down $2.38, or 14.98%, to $13.51.
Isonics Corporation (Nasdaq: ISON) moved up after the chemicals and advanced materials company said it has entered into a new agreement with lender Cornell Capital Partners, L.P. to restructure its debt. Cornell has agreed to reclassify a component of Isonics’ debt as equity, invest an additional $2 million, and forego the right to convert its debentures into common stock until after Feb. 28, 2008, Golden, Colo.-based Isonics said after the opening bell. The company said it should now be able to gain compliance with Nasdaq Listing Requirements. On March 26 Isonics received a delisting notification from the Nasdaq Capital Market. Shares are up $0.29, or 27.20%, to $1.36.
Shares of Genaera Corporation are down $0.06, or 11.24%, to $0.50 on news the company will reduce its workforce by 30 percent over the next three months. The Plymouth Meeting, Pa.-based company is focusing its corporate resources on the development of treatments for obesity and asthma and needs to downsize by 30 percent in order to best pursue this strategy, Genaera said after Tuesday’s close. It foresees restructuring charges of approximately $0.5 million in the second and third quarters of 2007.
Commercial inventories of gasoline stocks fell 5.5 million barrels last week, the ninth consecutive weekly decline, the U.S. Energy Information Administration reported after the start of trading. The drop is more than the anticipated decline of 1.4 million barrels.
The price of oil moved up close to $63 a barrel range from just below $62 a barrel earlier in the day.
By Alex Alexandrov
At 1:30 PM the Russell 2000 had lost 4.07 points, or 0.50 percent, to 810.44. The Dow Jones Industrial Average had shed 53.64 points, or 0.43 percent, to 12,520.21.
Shares of Methode Electronics are falling following news the component devices manufacturer has been downgraded by analyst Robert W. Baird & Co. The Harwood Heights, Ill.-based company’s stock has been downgraded to “underperform” from “neutral,” Robert W. Baird said before the start of trading. The brokerage cited risks with Methode’s changing business model. Shares are down $2.38, or 14.98%, to $13.51.
Isonics Corporation (Nasdaq: ISON) moved up after the chemicals and advanced materials company said it has entered into a new agreement with lender Cornell Capital Partners, L.P. to restructure its debt. Cornell has agreed to reclassify a component of Isonics’ debt as equity, invest an additional $2 million, and forego the right to convert its debentures into common stock until after Feb. 28, 2008, Golden, Colo.-based Isonics said after the opening bell. The company said it should now be able to gain compliance with Nasdaq Listing Requirements. On March 26 Isonics received a delisting notification from the Nasdaq Capital Market. Shares are up $0.29, or 27.20%, to $1.36.
Shares of Genaera Corporation are down $0.06, or 11.24%, to $0.50 on news the company will reduce its workforce by 30 percent over the next three months. The Plymouth Meeting, Pa.-based company is focusing its corporate resources on the development of treatments for obesity and asthma and needs to downsize by 30 percent in order to best pursue this strategy, Genaera said after Tuesday’s close. It foresees restructuring charges of approximately $0.5 million in the second and third quarters of 2007.
Commercial inventories of gasoline stocks fell 5.5 million barrels last week, the ninth consecutive weekly decline, the U.S. Energy Information Administration reported after the start of trading. The drop is more than the anticipated decline of 1.4 million barrels.
The price of oil moved up close to $63 a barrel range from just below $62 a barrel earlier in the day.
By Alex Alexandrov
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