Tag - NASDAQGS:BCPC

ArcSight Inc (Nasdaq:ARST), Westwood Holdings Group Inc (Nasdaq:WHG) and PC-Tel Inc (Nasdaq:PCTI) are among the new 52-week highs in Friday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

After breaching bear market territory to start the second half of 2008, small caps recovered ground 30 minutes into the session on rosier-than-expected manufacturing data, but took a sharp turn down midday remaining entrenched in the red on inflation fears.

At 12:53 p.m. ET, the Russell 2000 skidded 11.13, or 1.61%, to 678.53, while the Dow slumped 139.63, or 1.23% to 11,210.38.

Riding in as the market’s knight in shining armor for the morning, the ISM Manufacturing Survey released at 10:00 a.m. clocked in at 50.2. The figure was above the forecasted 48.6, causing the market to pull back from sharper lows of the day. A read above 50 signifies economic expansion, while anything below represents economic contraction. The upside surprise on the ISM data sparked a sizable recovery bounce in equities, with the Russell 2000 shooting some eight handles off the morning lows.

But the better-than-expected catalyst couldn’t keep the bears from scouring the Street. The uptick in manufacturing activity was welcome news for Wall Street, but investors soon focused on the index of prices paid, which climbed to 91.5, marking the highest reading since 1979. That spike in prices coupled with continued lofty crude oil prices seen all session sparked inflation fears. 

Although it’s a new quarter today, the economic picture that has clouded small-cap equities’ performance year-to-date continues to loom. Climbing crude oil prices coupled with slumping financial stocks caused investors to pass up stocks for bonds this morning.

Just ahead of the opening, crude oil prices climbed back above $143 dollars a barrel, jumping some $3 dollars from Monday’s U.S. close. Oil spiked on heightened geopolitical tension in the Middle East, as rumors of a potential attack on Iran’s nuclear facilities by Israel remain on the front burner. Iran has threatened to take action on shipping through the Straight of Hormuz if attacked, and approximately 40% of the world’s fuel supply moves through that waterway. In addition, the International Energy Agency projected this morning that although demand for energy products would soften from the higher prices, the supply side would remain tight.

Sequenom Inc (Nasdaq:SQNM), Intersections Inc (Nasdaq:INTX) and Superior Well Services Inc (Nasdaq:SWSI) are among the new 52-week highs in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Houston American Energy Corp (Nasdaq:HUSA), Innophos Holdings Inc (Nasdaq:IPHS), Balchem Corp (Nasdaq:BCPC), Digimarc Corp (Nasdaq:DMRC), Tailwind Financial Inc (Nasdaq:TNF) and NCI Inc (Nasdaq:NCIT).

Here are the new 52-week highs among small caps:

This week, we follow up on our previous two Newsletter Watch columns, returning to favorite ideas among small-cap funds, as well as a look at two small-cap stocks that fit the "guru strategy" of Warren Buffett.

Two weeks ago, we featured favorite small-cap funds from Jim Lowell. Here, we add a new trio of advisors who see upside potential in small-cap funds and ETFs.

Carl Delfeld, of Chartwell ETF Advisors, is known for his expertise in exchange-traded funds, and his latest "pick of the week" is a bet on the iShares MSCI Japan Small Cap (NYSE:SCJ). The reasons behind DelFeld’s selection are as follows:

1) Small-cap Japanese stocks listed on Japan's second section are collectively trading at below book value.

2) Japanese market is exhibiting stronger momentum.

3) Japanese small-cap stocks are less affected by yen and U.S. dollar fluctuations.

4) Expectations for Japanese economic growth are very low with upside surprise likely.

An added catalyst, he suggest is that global equity managers are scrambling to gain market weighting for Japan after being underweight for some time.

Meanwhile, Thurman Smith, editor of Equity Fund Outlook, sees opportunity in Intrepid Small Cap (MUTF:ICMAX). "Over its first year and a half, the fund lagged its small-cap value competition, but it has held up well enough in the last seven months to deliver an annualized return of 8.2% over its 2.5-year life, a return almost [three times] that of the MSCI Small Cap Value Index," Smith says.

He says that the main focus of this "little-known fund" is on stocks with predictable revenue streams, and that are in industries with high barriers to entry.

Smith points out that Intrepid is a Florida boutique headed by Mark Travis. With a low risk rating, he says, "Intrepid Small Cap might interest conservative investors who want coverage in this area and are willing to accept modest up-market . . .

The Russell 2000 (NYSE: IWM) futures are a little higher and the small-cap index will likely open with a small rise.

There is no major economic news scheduled for today, but the Dallas Federal Reserve President’s speech at 1:30 p.m. ET is likely to make headlines.

Among small-cap companies, Ballard Power Systems Inc. (Nasdaq: BLDP), which makes fuel cells, said that it expects to ship twice as many units in 2008, bringing in total revenues of between $65 million and $75 million.

Small-cap stocks staged a dramatic bearish reversal Thursday, as the Russell 2000 rejected a promising morning rise to shed 13.74, or 1.94% to 696.28 by the close. The market continues to reflect indecision within the recent range – unwilling to sustain a dynamic move in either direction.

The market will be able to navigate through today's session unencumbered by outside economic news. It will be interesting to see if the Russell starts to falter below the 700 swing line after four sessions of see-saw action along that point so far this week. Look for support Friday at 694, 688 and 680; resistance comes in at 703.50, 712 and 717.

 

Investors who stumble across Balchem Corp. (Nasdaq: BCPC) might think it’s a specialty chemical maker. But Balchem, based in the Catskills region of New York state, is much, much more — and much, much less.

Depending on the whim of the service or analyst doing the grouping, one could find Balchem competing in the meat products sector, chemical manufacturing, industrial manufacturing, or specialty chemicals.

Confusing, isn’t it? They’d all be correct, to a certain degree, but also wrong, which could be why Balchem has only really started attracting some substantial interest from institutional investors during this decade, as sales have climbed steadily past $50 million, and topped $100 million during 2006.

Balchem is a 40-year-old New Hampton, N.Y.-based company with three business segments: specialty products, encapsulated/nutritional products and unencapsulated products operating as ARC Specialty Products, Balchem Encapsulates and BCP Ingredients, respectively. Through ARC, it’s the dominant supplier of ethylene oxide, a gas mostly used to make other substances, but also as a fumigant in making spices and cosmetics, and to sterilize medical devices including pacemakers.

The past few years, Balchem has made some strategic acquisitions that fit into its product mix. Balchem enhanced its global presence last year by buying the choline chloride and methylamines businesses from Akzo Nobel Chemicals S.p.A. in Italy. That boosted its production of choline, an amino acid that’s a building block of life. Choline chloride is used in poultry and swine production, but more choline is being consumed by humans as a nutritional supplement.

The proprietary microencapsulation technology developed by Balchem is used in many ways in the food, nutrition, pharmaceutical and specialty animal health markets. For example, in ruminant animals such as cows, vitamins and supplements that need protection from the four stages of the stomach to reach the digestive track can take advantage of microencapsulation to reduce the amount administered — and cutting costs. Aquaculture uses the Balchem encapsulates to get needed substances into fish without dilution by the water.