Tag - NASDAQGM:MEDQ

What a rally it's been.

Small-cap stocks had a strong run in September, posted decent gains in October, and have marched higher still since November 1st. With momentum on the small cap investor's side, let's take a look at what's been working, and consider what's ahead in the last two months of the year.

SIFCO Industries Inc. (Nasdaq:SIF), Lithia Motors Inc. (Nasdaq:LAD) and LodgeNet Interactive Corp. (Nasdaq:LNET) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: IncrediMail Ltd. (Nasdaq:MAIL), Air Methods Corp. (Nasdaq:AIRM), Radware Ltd. (Nasdaq:RDWR), World Heart Corp. (Nasdaq:WHRT), MedQuist Inc. (Nasdaq:MEDQ) and B&G Foods Inc. (Nasdaq:BGS).

Abaxis Inc. (Nasdaq:ABAX), Lithia Motors Inc. (Nasdaq:LAD) and Orthovita Inc. (Nasdaq:VITA) are among the new 52-week highs in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: MedQuist Inc. (Nasdaq:MEDQ), Destination Maternity Corp. (Nasdaq:DEST), China Automotive Systems Inc. (Nasdaq:CAAS), Isilon Systems Inc. (Nasdaq:ISLN), Nicholas Financial Inc. (Nasdaq:NICK) and Symmetricom Inc. (Nasdaq:SYMM).

Stocks slid during the morning session and began a more gradual recovery after noon eastern time. The Dow closed up 4.76 points to 8,183 in choppy trading all day and on news that initial jobless benefits claims came in at 565,000 down from the 605,000 that analysts had expected.  

Both the Nasdaq and the S&P 500 closed up today at 1,752 and 882, respectively. 
The top 2,000 small-cap stocks making up the Russell 2000 closed down 0.4 points to end the day's trading at 479. 

Small-cap gainers were lead by Superior Bancorp (Nasdaq:SUPR) up 22% on heavier than normal volume. The stock opened today at $2.19 and hung around that level until shortly after 1:00 p.m. eastern to spike to $2.75 within 15 minutes. The remainder of the trading session saw SUPR trying to push through resistance at $2.97 before settling at $2.69. 

Other small-cap gainers for today include Park Bancorp (Nasdaq:PFED) up 21% to close at $8.70 from a previous close of $7.19; MOD-PAC (Nasdaq:MPAC), a manufacturer of folding cartons in north America, up 20%; and Chicago Rivet & Machine (Amex:CVR) up 25%. 

Decliners in the small-cap space were lead by American International Group (NYSE:AIG), down 28% on news that the company is potentially looking to sell parts of its foreign life-insurance units to MetLife (NYSE:MET). This comes on the heels of AIG's announcement last week that shareholders had approved a 1-for-20 reverse stock split in an effort to maintain the firm's listing on the New York Stock Exchange. 

Other small-caps losing in today's session include United Community Bancorp (Nasdaq:UCBA) down 17%; Tuesday and Wednesday's high flyer, Novagen (Nasdaq:NVGN) was down 20% as profit-takers continued the sell-off that started Wednesday afternoon; and MedQuist (Nasdaq:MEDQ) down 13%.

*****Earnings season has begun. Alcoa (NYSE:AA) kicked things off with a report that was better than expected, even though the company lost $454 million in the second quarter. Yes, nearly half a billion dollars.  

Alcoa went on to say that aluminum demand will be down 7% this year. One analyst widened his loss estimates for the remainder of this year and 2010. And yet the stock is up 6% in the early going.  

How can that possibly be bullish, you ask?  

Well good question. And the answer may not come as that much of a surprise: China. Alcoa believes that Chinese stimulus spending may help it become "…free cash flow positive very soon…" Alcoa's CFO said.

*****I've discussed China's stimulus plans at length here in Daily Profit. And I've also been aggressively adding Chinese stocks to the SmallCapInvestor PRO portfolio. (Click here to find out which ones.) 

But it's still nice to hear from a major U.S. corporation that China's $585 billion stimulus spending plan is expected to have a positive effect on commodity pricing and demand.  
In fact, Alcoa's CEO added a little color to China's stimulus efforts. He reported that China is telling its people "…that it's good to not have too much savings and to buy new cars and get a new air-conditioner." 

It would be ironic if China usurped the U.S. and became the world's consumer of last resort. And a profitable irony at that. 

*****It's being reported that stocks are rallying after weekly new unemployment claims were down sharply last week. But continued unemployment benefit claims from workers already on the dole rose for the week.

The drop in new claims appears to be an anomaly due to a break in layoffs in the auto industry. There doesn't appear to be any significant change in the unemployment trend.  

*****I hope you've been paying attention to Jason Cimpl's video chart analysis and weekly forecasts. He's been hitting the market's next moves with uncanny accuracy. You'll recall from last week, he was looking for more weakness early this week, with a recovery mid-week. If yesterday's late rebound can continue today, he'll be spot on again. Be sure to read tomorrow's Daily Profit to view Jason's forecast for next week.
 
And his prescient forecasts are making money for subscribers to TradeMaster Daily Stock Alerts, too. They just took 15% on the Ultrashort Financial ETF (NYSE:SKF) in 8 days. And it looks as though he's getting his readers ready for some upside trades.  
Of course, you'll get his video forecast in tomorrow's Daily Profit, but if you want to start getting his profitable trades, too, then you'll want to sign up for TradeMaster Daily Stock Alerts. There's a 30-day trial available. Click here to find out how you can enjoy steady profits in this uncertain market.

*****The PPIP is doomed. PIMCO's Bill Gross is dropping out of the government's program to remove toxic assets from banks' balance sheets. Gross and Co. are apparently concerned that the government has gotten too unpredictable, changing its mind, and even the terms, of other bailout measures retroactively.   

Plus, there's also the likelihood that banks won't sell toxic assets at anything resembling attractive prices. And that will kill the program.  

I still believe Geithner blew his opportunity to use the stress-tests to force banks to sell their toxic assets and improve their balance sheets. But as we know, Geithner simply does not play hardball. And that's too bad, because our economy could use some leadership from the Treasury.  

P.S. I just finished reading through a new book by senior trader Larry Connors. It's called "High Probability ETF Trading". It's on profitable trading strategies using ETFs and he's hitting a 93% win rate. I don't know about you, but I'll take 93% any day. He gave me a link to more information about the book to share with Daily Profit readers (I asked him for it as readers send me a ton of questions on ETFs). Click here to find out more about his book and discover how to get up a 93% win rate on your ETF trades.

MedQuist Inc. (Nasdaq:MEDQ), Seneca Foods Corp. (Nasdaq:SENEA) and Verigy Ltd. (Nasdaq:VRGY) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Starlims Technologies Ltd. (Nasdaq:LIMS), Corporate Executive Board Co (Nasdaq:EXBD), Neenah Paper Inc. (Nasdaq:NP), Rubicon Technology Inc. (Nasdaq:RBCN), Gainsco Inc (Nasdaq:GAN) and Emulex Corp. (Nasdaq:ELX).

Littelfuse Inc (Nasdaq:LFUS), Par Technology Corp (Nasdaq:PTC) and MedQuist Inc (Nasdaq:MEDQ) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Cadiz Inc (Nasdaq:CDZI), John Bean Technologies Corp (Nasdaq:JBT), CAI International Inc (Nasdaq:CAP), Methode Electronics Inc (Nasdaq:MEI), Female Health Co (Nasdaq:FHCO) and Lannett Co Inc (Nasdaq:LCI).

Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Spectrum Pharmaceuticals Inc. (Nasdaq:SPPI) and Canadian Solar Inc. (Nasdaq:CSIQ) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: MedQuist Inc. (Nasdaq:MEDQ), Century Aluminum Co (Nasdaq:CENX), Ener1 Inc. (Nasdaq:HEV), ArcSight Inc. (Nasdaq:ARST), Broadpoint Gleacher Securities Group Inc. (Nasdaq:BPSG) and Fuqi International Inc. (Nasdaq:FUQI).

Small caps are up nearly 3% this afternoon after the government reported this morning that fewer jobs were lost in April than expected.

At 2:06 pm ET, the Russell 2000 (NYSE:IWM) is up 2.81% at 506.81, while the Dow is up 1.56% and the S&P 500 is up 1.85%.

Employers cut 539,000 jobs last month. That is a big improvement from a revised 699,000 job losses in March and less than the loss of 610,000 jobs analysts had been expecting. Also, the federal government reported that 10 of the 19 largest U.S. banks must raise about $75 billion in new capital, which is less than some had feared.

Small caps on the rise today include MedQuist Inc. (Nasdaq:MEDQ), up 64% after announcing first-quarter 2009 results, and Huntington Bancshares Inc. (Nasdaq:HBAN), 36% higher after completing a $120 million stock issue. Fuel Systems Solutions (Nasdaq:FSYS) is also up 40% today after posting a Q1 net profit, while VNUS Medical Technologies (Nasdaq:VNUS) has popped 35% after news broke that Covidien Ltd. will be acquiring the small cap.

*****The headline reads “Bank Stress Tests Lifts Clouds of Uncertainty.” And bank stocks are rallying. Regional bank Fifth Third Bancorp (Nasdaq:FITB) is up 40% in the early going on the news that it needs to raise $1.1 billion.

In total, the government’s stress tests recommended that banks raise $75 billion to withstand further potential losses. I’m not sure how to reconcile the stress tests results with the IMF report on bank losses that was released in April.

In that report, the IMF said that total losses for banks and financial institutions would hit $4 trillion. The U.S. share of that is $1.6 trillion, of which $510 billion has already been written off. That leaves another $550 billion in write-offs . . .

Small-cap stocks were modestly higher in choppy morning trade, as investors juggle several cross-currents, including a sudden jump in crude oil prices and a fresh batch of economic data that seemed slightly better than feared. At 10:06 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.49, or 0.48% at 724.03.

New Home Sales were pegged at an annual rate of 515,000 units, which was below the 530,000 forecast. The single-family home sales rate for June was the lowest since September 1991. Meanwhile, Consumer Confidence came in well above the forecast, with the headline figure at 56.9, compared with the projection of 53. The U.S. dollar edged slightly higher after the confidence report, but did not take out the overnight high against the euro.

The Case-Shiller Home Price Index was slightly better than the forecast, coming in at minus 15.9%, compared with the projection of minus 16.2%. In addition, the velocity of declines is slowing and there were some pockets that edged higher, which will foster some hope of a bottom for the beleaguered housing sector. Still, the report shows that home prices in metropolitan areas continue to fall at a record annual pace.

The U.S. dollar climbed to new move highs in overnight trading, pulling to the highest point since February against the euro. After this morning’s run of economic data, the dollar remained firm, which helped pull money into U.S. equities. In addition, the yield on ten-year notes and bonds was higher, suggesting money flow into stocks versus fixed income products.

Crude oil bounced about 30 minutes ahead of the U.S. stock market opening, boosted by concerns that Hurricane Gustav could trek toward key production areas in the Gulf of Mexico. The Gulf harbors about 25% of U.S. crude production and some 15% of natural gas production. Crude oil prices climbed back above $117 a barrel, . . .

Crocs Inc. (Nasdaq:CROX), Cascade Financial Corp. (Nasdaq:CASB) and Hawthorn Bancshares Inc. (Nasdaq:HWBK) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.    

Also included among the results: MedQuist Inc. (Nasdaq:MEDQ), Protherics  (Nasdaq:PTIL), Cheniere Energy Partners (Nasdaq:CQP), Micromet Inc. (Nasdaq:MITI), Harris & Harris Group Inc. (Nasdaq:TINY) and Primus Guaranty (Nasdaq:PRS).           

Here are the biggest percentage gainers among small caps:    

MedQuist Inc (Nasdaq:MEDQ), Global Industries Ltd (Nasdaq:GLBL) and Rackable Systems Inc (Nasdaq:RACK) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Otter Tail Ord Shs (Nasdaq:OTTR), Sun Hydraulics Corp (Nasdaq:SNHY), Fortress Investment Group LLC (Nasdaq:FIG), A Power Energy Generation Systems Ltd (Nasdaq:APWR), Colfax Corp (Nasdaq:CFX) and I-Flow Corp (Nasdaq:IFLO).

Here are the biggest percentage losers among small caps:

Small-cap stocks pressed lower in early trading, pulled down by losses in overseas equities trading, a swollen inflation picture from morning economic data and ongoing jitters over financial shares. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.60, or 1.20% at 707.55. The Russell is testing short-term support along the 707.50 line; a breach of that point would put the next key support point near 701.00.

This morning’s personal income report provided a mixed picture within the data series, with personal income better than expected, and consumer spending above forecast. However, the market focused on the inflation portion of the report, which showed the year-over-year PCE price index at 4.1%, the highest rate in 17 years. And even though headline personal income was better than expected at 0.1% vs. the projection for a dip of 0.2%, it was still the smallest rise since April 2007. The factory orders report at 10:00 a.m. ET came in at 1.7%, which was well above the forecast for a rise of 0.7%.

In stock market trading around the world, equities were out of favor overnight. Japan’s Nikkei was off 1.2%, Hong Kong’s Hang Seng down 1.5%, and China’s stock market down 2.3%. Elsewhere, Taiwan was down 0.3%, as was Australia. Meanwhile, Singapore was down 1.0%, South Korea off 1.9% and India down 0.5%.

European shares were also down heading into the U.S. stock market open, with financial shares acting as a drag after HSBC reported a 28% decline in first half profits and reported a hefty $14 billion debt write down tied to bad U.S. home loans and other asset losses. Major U.S. banks Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wachovia (NYSE:WB) were down 2.7%, 2.1% and 4.0%, respectively, shortly after the open. Earlier this morning, Oppenheimer analyst Meredith Whitney predicted on CNBC that housing prices were on tap for further losses and she painted a dreary picture for banks, investment banks and brokers.

Some large-caps to keep an eye on today that could spill trends over into the small-cap arena include Chicago Bridge& Iron Co. (NYSE:CBI), which could get a boost after a bullish article in Barron’s over the weekend. Other stocks finding favor in Barron’s include railroad firms Union Pacific (NYSE:UNP) and Canadian National Railway Co. (NYSE:CNI).

Some relief for stocks could come from a pullback in crude oil prices this morning, with futures down more than $1 a barrel, slipping below $124. Bears were pointing to rising output from OPEC on the supply side, and pinched demand from major customers tied to high prices and soft economic growth. However, a new storm was brewing in the Gulf of Mexico, which could keep the bears in check. Elsewhere on the commodity inflation front, platinum prices tumbled 5% overnight as concerns about a global slump in the automotive industry take hold. Copper prices – which are a key indicator of global demand – slumped to 4-month lows. There was some thought that demand from China would basically be at a standstill for a few weeks for the Olympics, which kick off later this week. Also, orange juice and coffee futures were taking a hit this morning, so physical goods price pressures were not a big concern early today for equities.