Tag - NASDAQGS:BEXP

When it comes to finding crude oil, the saying that it's just as good to be lucky as good often proves true. The latest technology and most experienced exploration team will get close to the oil, but to put a drill directly into an oil elephant requires a lot of good fortune as well.

Lately, one company has been both lucky and good. And the stock is performing exceptionally well in these days of $100 a barrel oil.

Novavax Inc. (Nasdaq:NVAX), Brigham Exploration Co. (Nasdaq:BEXP) and America's Car-Mart Inc. (Nasdaq:CRMT) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Alpha Pro Tech Ltd. (Nasdaq:APT), Sinovac Biotech Ltd. (Nasdaq:SVA), NB&T Financial Group Inc. (Nasdaq:NBTF), Ardea Biosciences Inc. (Nasdaq:RDEA), American Physicians Capital Inc. (Nasdaq:ACAP) and BTU International Inc. (Nasdaq:BTUI).

Novavax Inc. (Nasdaq:NVAX), Sequenom Inc. (Nasdaq:SQNM) and Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Spectrum Pharmaceuticals Inc. (Nasdaq:SPPI), China Medical Technologies Inc. (Nasdaq:CMED), CardioNet Inc. (Nasdaq:BEAT), Immunomedics Inc. (Nasdaq:IMMU), Brigham Exploration Co. (Nasdaq:BEXP) and Savient Pharmaceuticals Inc. (Nasdaq:SVNT).

ADC Telecommunications Inc. (Nasdaq:ADCT), WuXi PharmaTech Cayman Inc. (Nasdaq:WX) and Lydall Inc. (Nasdaq:LDL) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Brigham Exploration Co. (Nasdaq:BEXP), Jazz Pharmaceuticals Inc. (Nasdaq:JAZZ), Internet Initiative Japan Depository Receipt (Nasdaq:IIJI), ArvinMeritor Inc (Nasdaq:ARM), China TransInfo Technology Corp. (Nasdaq:CTFO) and E House China Holdings Ltd. (Nasdaq:EJ).

EchoStar Corp. (Nasdaq:SATS), ShengdaTech Inc. (Nasdaq:SDTH) and Brigham Exploration Co. (Nasdaq:BEXP) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Deerfield Capital Corp. (Nasdaq:DFR), Schawk Inc (Nasdaq:SGK), Tongxin International Ltd. (Nasdaq:TXIC), Massmutual Participation Investors (Nasdaq:MPV), Williams Controls Inc. (Nasdaq:WMCO) and City Telecom Depository Receipt (Nasdaq:CTEL).

Stocks jumped today after consecutively back to back good reports from Goldman Sachs (NYSE:GS) and Intel (Nasdaq:INTC) as well as a surprise from Gannett (NYSE:GCI) that it beat profit estimates by 9 cents, driving shares up 28%.

 

Good news kept flowing as investors were treated to revisions from the Federal Reserve Open Market Committee that the economy will shrink from 1% to 1.5% in 2009 as opposed to its earlier prognostication of 1.3% to 2%. The committee raised its inflation projection for 2010 to a range of 1.2% to 1.8%.

 

The Dow was up sharply by 256 points to close at 8,616, the highest its been in a month. The Nasdaq closed up 63 points to 1,863 and the S&P 500 roared to 933, up 27 points from yesterday's close at 906.

 

Small-cap stocks fared well with the Russell 2000 closing at 509, up 15 points. 
 

Today's volume leaders in the small-cap space include yesterday's leader, CIT Group (NYSE:CIT) with over 74 million shares traded, although trading was halted before the close on impending news concerning discussion with the federal government. Other small-cap volume leaders include Huntington Bancshares (Nasdaq:HBAN), and Sirius XM Radio (Nasdaq:SIRI).

 

Small-cap gainers were lead by Targacept (Nasdaq:TRGT) up 137% after news broke that its depression treatment drug candidate, currently called TC-5214, was able to significantly outperform a placebo drug in testing on patients with major depression disorders. The company announced that it expects to start late-stage trials of the drug in Q2 2010 and is in talks with several potential partners to help complete the drug's development.

 

Other small-cap gainers include a one-time holding with SmallCapInvestor PRO, Brigham Exploration (Nasdaq:BEXP) up 23%; Ferro Corporation (NYSE:FOE) up 35%; and beleaguered newspaper giant Gannett (NYSE:GCI) up 30%.

*****If you've ever wondered what it's like to be Warren Buffett and have more cash than you can spend or invest, just ask China. China just announced that it has over $2 trillion in foreign reserves.  

That is an unbelievable amount of cash to have accumulated. Bloomberg reports that China's reserves doubled in less than 3 years.  

This much money means two things: China can support it's GDP growth as long as it chooses to; and, China will continue to buy Treasuries. 
Sherman Chan, a Moody's economist in Australia said, "China has the strongest prospects out of all major economies, so it is not surprising that hot money is flowing back…China has certainly recovered from the downturn, and it is on a strong footing now." 

That's why we've been loading up on Chinese stocks in SmallCapInvestor Pro. It's not too late to profit from our top Chinese stocks. Click here for details.  

*****Yesterday morning it was Goldman Sachs (NYSE:GS). Then last night, it was Intel (Nasdaq:INTC). The world's biggest chip maker crushed earnings, but then did the unthinkable and offered a 3rd quarter revenue forecast that is as much as 14% higher than what analysts were expecting.  

Between Goldman and Intel, I'll take Intel. Intel is selling a product. And apparently, consumer demand for Intel's product is stronger than anyone imagined. Sure, much of the strength is coming from Asia (back to my China comment above), but, so what? Revenue is revenue. 

Other semiconductor companies were rallying in after hours, including Texas Instruments (NYSE:TXN) and Advanced Micro Devices (NYSE:AMD).   
As for Goldman, I didn't think that stock will stay over $150. Not that it matters. TradeMaster's Jason Cimpl has made money shorting Goldman. But as for me, Goldman is on the "Never Short" list along with Google (Nasdaq:GOOG) and Apple (Nasdaq:AAPL). They may have bad days, their stocks may get a beat-down once in a while, but these are solid companies with a penchant for finding profits no matter what the economy is doing. 

*****Government actions are currently filling in for an actual economy. That's how it is in our new "Managed America." Most expect the heavy hand of government to be temporary, and that Managed America can end sooner than later. We'll see… 

I expect the conditions of Managed America - high unemployment, sluggish growth, more regulations, higher taxes, and inflation to last years instead of months. And I've outlined my expectations for investing under these conditions in my new Special Issue of Top Stock Insights. The article is titled Managed America: The New Economic Reality. It's being released this morning. You can sign up for Top Stock Insights and get my blueprint for profiting in Managed America. Click here for your copy now.  

*****Now, as you know, it's Newsletter Advisors Wednesday. And by coincidence we're going to be speaking with Andy Obermueller about profiting from government-driven investing. It's essentially the flip side of the Managed America. Enjoy.

Best regards,

Ian Wyatt
Chief Investment Strategist
SmallCapInvestor.com

Newsletter Advisors Wednesday

This week's NewsletterAdvisors.com investment expert is Andy Obermueller, Chief Investment Strategist and editor for StreetAuthority's Government-Driven Opportunities.

Andy was a journalist before joining StreetAuthority. He worked for the business desks of the Philadelphia Inquirer and the Star-Ledger, New Jersey's largest paper, before going on to lead business coverage for a Texas daily. Andy briefly left the industry to get an inside look at corporate finance as a commercial lender for Wells Fargo's business banking group. He lives in Austin.

Andy, thanks for joining us today, now let's get started.   

Can you explain your investment process and criteria for investments?

I keep a very close watch on the executive branch of the government, including each cabinet department, as well as Congressional action. This gives me a pretty good sense of what Washington is up to. I study the legislation and regulatory proposals and track all the data I can -- there's a lot of it. I then look at which companies will be affected by government action and what that's likely to mean for them.

For instance, the FDA is part of the Department of Health and Human Services. I have a database of every drug in the approval process. For some giant drugmakers -- a Merck, say, or a Pfizer -- a new drug might not have much impact on the bottom line. But when the government approves a drug for a smaller drugmaker, the effect is huge. Those small drugmakers can be extremely lucrative investments -- all because of a government action.

What do you believe gives the government-driven investment style an edge over other investment styles?

Two words: Billion and trillion. These are the dollar terms of the government programs that the newsletter deals with. The U.S. federal government is gargantuan. It's the most powerful financial force on the planet. Every time a public dollar is spent, a private sector profit is realized. That has enormous implications, especially in light of the bailout, the stimulus bill and the administration's willingness to expand the role and reach of government.

Look, I'm passionate about this topic for one reason: it works. I've personally invested using a number of strategies over the years. Like you, I've tried various combinations of value, income and growth strategies. However, I'm not sure I've ever seen anything with as much potential as the government-driven stocks I'm finding.

What sectors do you think offer the most opportunities to profit from government action today?

I like energy and finance. Mr. Obama's move toward a green-collar economy, that is, merging the environmental movement with the gross domestic product, has far-reaching implications for every industry. And the banking system offers vast possibility: Though most large banks have entered a post-bailout phase, many small and midsize financial institutions are still struggling. They will come back -- they are as vital to the national economy as the large banks are too big to fail -- and their stock will follow suit. These two areas are outstanding for investors seeking large returns over the long term.

Ok, let's look at energy. Tell me about a government-driven stock you've dug up in this area.

Well, everyone knows that clean energy is a major part of the Obama agenda.  He hasn't even been in office a year yet and his green initiatives are already playing out.  On June 28th the House passed the "cap-and-trade" bill - which calls for a dramatic reduction in the amount of CO2 that industry can emit. This is historic.

The problem is, 35% of America's carbon emissions come from coal-fired power plants. Why? Because coal is both abundant and cheap in the U.S. -- we're sitting on enough of the stuff to power every home in America for the next 400 years. And at the same time, these coal plants are simply too expensive to replace. It would take $672 billion and several years.

But 'cap and trade' is a major thorn in the side of coal. The only solution I see is to find a way to burn coal without producing CO2. A handful of companies have actually figured out how to do this. Their method, called oxy-coal, is recognized as being perhaps the most promising environmentally-friendly technology on the planet. My favorite pick in this area is Praxair (NYSE:PX). It owns more than 200 patents related to oxy-coal.

What are your top three stock recommendations, and what attracts you to each?
I like Verenium Corporation (Nasdaq:VRNM). It's a small company that has engineered the leading biofuel process. It can make ethanol using cellulose, which is in all plant material found on earth. The government has put a ceiling on corn-based ethanol while at the same time mandating a +15,900% increase in the production of these "advanced biofuels" by 2022. What sets this company apart is that the government just gave it the nod to build the world's first commercial-scale cellulosic ethanol plant. There's no reason the explosive growth in this biofuel won't be mirrored by Verenium's stock.

Next I like Energy Recovery (Nasdaq:ERII). It makes a device that's critical to the efficiency of large desalinization plants, which are typically owned by governments. Without its equipment, desalinization is cost-prohibitive. ERII has 70% of the worldwide market, which is expected to double in the next ten years as water becomes ever scarcer. This issue is a lot closer to home than most people realize: Water supplies aren't just critical in the Middle East, they're increasingly important in places like California.

Finally, I like several players in the digital medical records space. The stimulus bill provides for $19 billion for these companies to upgrade the way the health-case system stores patient information. Storing these files digitally will improve physician access to information and not only improve the quality of care but reduce its cost, such as by eliminating unnecessary and potentially redundant medical tests. Among my recommendations here is Quadramed (NYSE:QDHC), which helped the Veterans Administration develop its VistA Program, the first and most successful large-scale electronic medical records system.  

Andy, thanks for the insights on how to profit from government spending and for the recommendations you're following. I'm sure readers will want to follow-up on those. This is certainly an exciting time to invest in companies making billions off the federal government.

Andy Obermueller is the Chief Investment Strategist for StreetAuthority's Government-Driven Investing newsletter. Andy invites you to follow his Government-Driven Investing blog, where he publishes his investing insights for free, at http://www.Government-DrivenInvesting.com

Today was options expiration and it made for dull trading. The S&P 500 finished up 2.74 at 921, the Dow Industrials finished down 16.85 at 8,538XXX. The Nasdaq was the strong index, it finished the day up 19.75 at 1,827 on a Goldman Sachs (NYSE:GS) upgrade of Microsoft (Nasdaq:MSFT). 

Oil prices fell below $70. But even better, gasoline futures dropped below $2 after inventory data showed a huge surplus. That suggests prices at the pump may start to head lower.

Large cap oil stocks like Exxon-Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were down in the 1% range, but several micro-cap oil & gas exploration stocks were up. Brigham Exploration (Nasdaq:BEXP) was up 4.36%, Kodiak Oil (AMEX:KOG) was up 7% and Cano Petroleum (AMEX:CFW) was up 3.5%.

The Russell 2000 finished much like its large-cap brethren, with a minimal 3.16 point gain.

Top small cap winners for the day included TerreStar (Nasdaq:TSTR) up 30%, Sealy (NYSE:ZZ) up 20.5% and Smith and Wesson (Nasdaq:SWHC) up 21.9%.

Small cap decliners of note include A-Power Energy (Nasdaq:APWR) down 12%, E*Trade (Nasdaq:ETFC) down 11% and Cost Plus (Nasdaq:CPWM) down 13%.

So now the government is actually going to subsidize car sales with up to $4,500 in incentives for car buyers who get rid of cars that get 18 mpg or less.  

I understand that the auto industry is hurting. And I also get that more efficient cars help reduce our dependence on foreign oil. But is it appropriate to use tax payer dollars to fund auto purchases?  

Perhaps if we were talking about something that is a necessity, like farming, subsidies make some sense. After all, we need farmers. I think we have to consider cars a luxury, or at least a discretionary purchase.  

Not only that, but a car subsidy can only create temporary demand. And given the precipitous drop in car sales (10 million vehicles will be sold this year as opposed to 16 million in 2007), it's highly unlikely any momentum can be created. Not with unemployment on the rise. And not with home values still falling.  

*****Increasing demand based on stimulus spending is a temporary fix. The government is just buying time hoping that the economy will recover. But many of the signs of recovery are based in stimulus spending.  

*****Analysts are now acknowledging that oil has been rallying on a falling dollar and on expectations of price inflation. Of course, the potential for price inflation is, once again, directly related to government stimulus spending.  

The massive amounts of Treasury bonds that have been and will be sold are boosting interest rates and driving the value of the U.S. dollar down. So any asset priced in dollars is rising in price. Like oil. Mind you, that doesn't mean its value is rising, just its price.
 
At some point, higher oil prices will affect the prices of other goods. But as I've noted before, it's likely to be a while before producers are able to raise prices in the current economic environment. Remember, it wasn't until 2007 that inflation really started to become an issue.  

*****Another catalyst for commodity prices in general is supply. Global demand is down, credit has been difficult to get, and miners and producers have not been investing in increasing supply.  

That sets the stage for supply/demand imbalances when economic growth returns.  
We'll be discussing these topics and our bullish outlook for commodity stocks in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6 pm. It's free to attend, you can sign up HERE.  

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, has his latest video chart analysis ready for you. Last Friday, Jason absolutely nailed this week's trading. I hope you find this week's analysis just as useful. Here's the LINK.  

Investors saw lots of red in today’s trading session as regional manufacturing data suggested that economy is not picking up as much as had been hoped. Most economists had expected gains in the New York Fed’s manufacturing index but were instead treated to numbers indicating that the factory sector shrank at a more severe rate than expected.

A stronger U.S. dollar pulled oil below $70 away from its eight month high.

As of press time, 3:30 P.M. Eastern, the Dow was down -194.75 to 8,604.50; the Nasdaq was down -46.29 to 1,812.51, and the S&P 500 was down -23.25 at 922.96.

The Russell 2000 Index, comprised of the top 2,000 small-cap stocks, was down 16.77 at 510.06.

Bucking the downward trend today was pharma and financials. Two of the top percentage gainers were JazzPharma (Nasdaq:JAZZ) up 69.7% on positive news about it fibromyalgia drug and MAP Pharma (Nasdaq:MAPP) up 11.89%. MAPP has been on a tear since late May when it shot up to $11.39 from $3.15.

Other small-caps showing leadership today include QEP (Nasdaq:QEPC) up 39.07%, Tongxin Intl (Nasdaq:TXICU) up 24.75%, and two financials, American Capital (Nasdaq:ACAS) up 14.67% and New Century Bancorp (Nasdaq:NCBC) up 14.83%.

Small-cap decliners were lead by Oil-Dri Corp. of America (NYSE:ODC) down 23.24% following Friday’s news that it will lose its largest customer in the cat litter retail segment. Other leading decliners include Virgin Mobile USA (NYSE:VM) down 16.98%, book retailer Borders Group (NYSE:BGP) down 13.16%, and Integrated Electrical Services (Nasdaq:IESC) down 17.64%.

*****Summer doesn’t officially start for a few more days. Tell that to the parents who are now getting their kids off to camp or getting ready for vacation. For the standard two-income household, living easy in summertime is just a memory.

Including today, we have just 12 more trading days until the end of June and the end of the second quarter. I suspect we will have seen the highs for stock prices by then. That is, if we haven’t seen them already.

Oil backed off recent highs on Friday. And that’s likely to continue. Oil was too cheap at $33 a barrel. But $73 is too high, at least for now while much of the developed world is still mired in an economic downturn. We know demand is still weak. And we know there are looming supply issues when demand picks back up. However, the issue right now is the economy.

*****Oil has been rallying as the news cycle has been relentlessly optimistic about an imminent economic recovery. In fact, many leading economists expect U.S. GDP to actually grow in the third quarter.

Oil stocks that we’ve been following have been on a tear the market bottom, including Graham Corp. (AMEX:GHM) up 81%; Brigham Exploration (Nasdaq:BEXP) up 239%; Gulfport Energy Corp. (Nasdaq:GPOR) up 326%. Even the majors like ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), and ConocoPhillips (NYSE:COP) are bringing investors some decent returns, though not as great as small-cap stocks in the same sector.

Investors have bought the rumor of economic recovery. We’ll see how they respond to the news. I’ll be watching oil as the leading indicator for economic expectations.

Right now, it seems like stock prices have priced in a modest recovery. And if investors perceive that there’s not much upside left for stock prices, it would makes sense to trim exposure, take profits, or however you want to put it.

*****We’ve seen anecdotal evidence that investors are moving funds out of the stocks that have led the market higher. Technology has been having trouble making headway. And we’ve seen strength in healthcare and consumer staple stocks. Plus, the Volatility Index (VIX), which measures the cost of put options (which rise in value as stocks or indices fall, thereby giving investors downside protection) has been on the rise.

This suggests that investors are preparing for a downside move for stock prices, or, at the very least, protecting gains they have made.

*****On Mondays, I’m going to start offering a look at the economic data coming out during the week ahead. This week is a bit unusual as all the economic data is out on Tuesday. Tomorrow we get Housing Starts, Building Permits and the Producer Price Index (PPI).

Of course, consumers will focus on the housing numbers. But I’d expect any numbers will be interpreted with optimism. Investors seem to understand that the bottoming process for the housing market will be volatile and that wild swings in the data should be expected.

In my opinion, the PPI is the one to watch. The U.S. dollar rallied a bit last week, but there’s no doubt that massive Treasury bond sales have investors worried about a weaker dollar the potential for inflation to pick up. Add to that improving retail sales numbers, helped by higher gasoline prices, and you have the potential for a higher-than-expected PPI reading. Needless to say, that would not be good for stocks.

I’ll talk to you tomorrow.

Ian Wyatt

P.S. You’ll recall from Friday’s issue we start sharing charting analysis from TradeMaster’s technical analyst, Jason Cimpl. If you didn’t have a chance to catch, here’s the link. You’ll get his take on this week’s market direction. Since this is a new feature for Daily Profit I’d greatly appreciate receiving any feedback from you on it.

SurModics, Inc. (Nasdaq:SRDX), Evergreen Solar Inc. (Nasdaq:ESLR) and Palm Inc. (Nasdaq:PALM) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF), Bankrate Inc (Nasdaq:RATE), Ceragon Networks Ltd. (Nasdaq:CRNT), Brigham Exploration Co. (Nasdaq:BEXP), Dress Barn Inc. (Nasdaq:DBRN) and Clean Energy Fuels Corp. (Nasdaq:CLNE).

Here are the most actively traded companies among small caps:

Saia Inc (Nasdaq:SAIA), Brigham Exploration Co (Nasdaq:BEXP) and Hanmi Financial (Nasdaq:HAFC) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Alvarion Ltd (Nasdaq:ALVR), Kohlberg Capital Corp (Nasdaq:KCAP), ATA Inc (Nasdaq:ATAI), BioSante Pharmaceuticals Inc (Nasdaq:BPAX), Aladdin Knowledge Systems Ltd (Nasdaq:ALDN) and Dendreon Corp (Nasdaq:DNDN).

Here are the most actively traded companies among small caps:

Energy XXI (Nasdaq:EXXI), Canadian Solar Inc (Nasdaq:CSIQ) and Crocs Inc (Nasdaq:CROX) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Brigham Exploration Co (Nasdaq:BEXP), FCStone Group, Inc. (Nasdaq:FCSX), Gulfport Energy Corp (Nasdaq:GPOR), Solarfun Power Holdings Co Ltd (Nasdaq:SOLF), OmniVision Technologies Inc (Nasdaq:OVTI) and Crucell NV ADR (Nasdaq:CRXL).

Here are the most actively traded companies among small caps:

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

Small-cap stocks pressed lower on the opening as a fresh batch of earnings failed to impress investors in the aftermath of Monday’s rout on financial stocks and as crude oil drifted up to $135 dollars a barrel. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was off 5.56, or 0.76%, at 731.01.

Regional banks were hammered Monday, with Marshall & Iisley Corp. (NYSE:MI) sinking 5% to 52-week lows on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set 52-week lows, losing about 10%. Unfortunately, the news remains gloomy for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) shedding 16% shortly after today’s opening. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) tumbled 22% as the firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and pay down debt.

The “headline” financial stock coming into today’s action was Morgan Stanley (NYSE:MS), which reported quarterly results that were slightly above the forecast. However, the firm was still pulled into the red, down about 6% in early trading.

Outside of the financial world, FedEx (NYSE:FDX) earnings came in below the forecast, and their outlook for 2009 was dreadfully in line with surging energy costs that are hurting results for the package courier. When the FedEx news came out before the opening, it sparked about a three handle additional decline in large-cap S&P 500 futures.

Speaking of surging energy, crude oil prices climbed back to the $135 dollar a barrel level ahead of the stock market opening on concerns about a potential strike in Nigeria that could crimp output. Crude oil pulled back toward $134 dollars, but should gather direction for the day from the latest stocks data, which will come out . . .

Macrovision Solutions Corp (Nasdaq:MVSN), Mitcham Industries Inc (Nasdaq:MIND) and Layne Christensen Co (Nasdaq:LAYN) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Caraco Pharmaceutical Laboratories Ltd (Nasdaq:CPD), Brigham Exploration Co (Nasdaq:BEXP) and Approach Resources Inc (Nasdaq:AREX) are also among the biggest percentage losers.

Here are the biggest percentage losers among small caps:

Royale Energy Inc (Nasdaq:ROYL), Avant Immunotherapeutics Inc (Nasdaq:AVAN) and Brigham Exploration Co (Nasdaq:BEXP) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

GMX Resources Inc (Nasdaq:GMXR), Abiomed Inc (Nasdaq:ABMD) and CardioNet Inc (Nasdaq:BEAT) are also among the new 52-week highs.

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

Royale Energy Inc (Nasdaq:ROYL), Acorda Therapeutics Inc (Nasdaq:ACOR) and Avant Immunotherapeutics Inc (Nasdaq:AVAN) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

American Electric Technologies Inc (Nasdaq:AETI), Mexco Energy Corp (Nasdaq:MXC) and Brigham Exploration Co (Nasdaq:BEXP) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

Mexco Energy Corp (Nasdaq:MXC), FieldPoint Petroleum Corp (Nasdaq:FPP) and Pyramid Oil Co (Nasdaq:PDO) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $750 million.

Brigham Exploration Co (Nasdaq:BEXP), Olympic Steel Inc (Nasdaq:ZEUS) and Fibernet Telecom Group Inc (Nasdaq:FTGX) are also among the new 52-week highs.

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

Iomai Corp (Nasdaq:IOMI), Brigham Exploration Co (Nasdaq:BEXP) and Fuel Systems Solutions Inc (Nasdaq:FSYS) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $750 million.

Maine & Maritimes Corp (Nasdaq:MAM), VAALCO Energy Inc (Nasdaq:EGY) and VanceInfo Technologies Inc (Nasdaq:VIT) are also among the new 52-week highs.

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

Brigham Exploration Co. (Nasdaq:BEXP), Rex Energy Corp. (Nasdaq:REXX) and Exponent, Inc. (Nasdaq:EXPO) were among the new 52-week highs established during Tuesday's trading among companies with market capitalizations or values under $750 million.

T-3 Energy Services, Inc. (Nasdaq:TTES), United States Oil Fund LP (AMEX:USO) and CP HOLDRS (NYSE:HCH) were also among the 52-week small-cap highs.

Here are Tuesday's 52-week small-cap highs:

Gencor Industries, Inc. (Nasdaq:GENC), Natural Gas Services Group, Inc. (AMEX:NGS) and Brigham Exploration Co. (Nasdaq:BEXP) were among the new 52-week highs established during Monday's trading among companies with market capitalizations or values under $750 million.

Clayton Williams Energy, Inc. (Nasdaq:CWEI), UFP Technologies, Inc. (Nasdaq:UFPT) and United States Gasoline Fund (AMEX:UGA) were also among the 52-week small-cap highs.

Here are Monday's 52-week small-cap highs:

The Russell 2000 (NYSE:IWM) closed lower on news that Wachovia Corp. (NYSE:WB) suffered a first-quarter loss. The small-cap index fell 2.09 points, or 0.30%, to 686.07. The Dow Jones Industrial Average declined 23.36 points, or 0.19%, to 12,302.06.

On a year-to-date basis, the Russell 2000 has shed 10.44%, while the Dow is off 7.26% and the S&P 500 is down 9.54%.

The bears and the bulls tangled but the bears were eventually victorious as investors reacted to news before the opening that Wachovia Corp. (NYSE:WB) swung to a first-quarter loss and will sell common and preferred stock to raise capital.

The Charlotte, N.C.-based bank has been relatively less exposed to the subprime mortgage mess than the other major financial institutions, leading to speculation that more players will report losses.

Banks were among the worst hit industry groups today. Among those . . .

Brigham Exploration Co. (Nasdaq: BEXP), an oil and gas exploration and production company, said it discovered three new wells in Mountrail County, N.D. Bakken and reported a high working interest Red River discovery in Sheridan County, Mont.

The Austin, Texas-based company also reported a new 50% working interest in a Southern Louisiana joint venture to operate the drilling of six wells.

The small cap said its discoveries increased acreage growth to 219,000 net acres, with approximately 67,500 net acres in Mountrail County and extensional areas.

Shares of Brigham Exploration (BEXP) gained $0.49, or 6.76%, to $7.74 in pre-market. Shares of Brigham Exploration have been trading in the range of $4.17 to $8.08 for the past 52 weeks.

The Russell 2000 (NYSE: IWM) futures are higher but the small-cap index could be weighed down by news of poor housing starts.

The slump in the housing sector has apparently deepened, according to a report by the U.S. Census Bureau that shows a decline in December housing starts.

Housing starts fell 14% to a seasonally adjusted annual rate of 1.006 million units, below November’s downwardly revised total of 1.173 million. Economists were expecting to see a smaller drop to 1.15 million.

What’s worse, the housing sector does not appear to be headed for recovery.

That’s because building permits, a sign of future construction, fell 8.1% to an annual rate of 1.068 million units. Economists were expecting a smaller decline.

In other economic news, investors will be paying attention to U.S. Federal Reserve chairman Ben Bernanke’s congressional testimony. Concerns about the overall state of the economy have increased calls for some sort of response to prevent a recession.

Observers and economists widely expect the Fed to lower its target interest rate when it next meets on Jan. 29 and 30.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Comtech Group, Inc. (COGO), up 10% on news it has reaffirmed its 2007 guidance due to strong business.
• Smith & Wesson Holding Corp. (SWHC), up 8%.
• Brigham Exploration Co. (BEXP), up 7% on news it has discovered three wells.

Biggest percentage losers:

• Jones Soda Co. (JSDA), down 4% on news of an analyst downgrade.
• Provident Bankshares Corp. (PBKS), down 4% on news of a fourth-quarter loss.
• ANADIGICS, Inc. (ANAD), down 3%.

The Russell 2000 and the Dow Jones Industrial Average are trading on both sides of the flat line this afternoon. At 2:21 p.m. ET the Russell 2000 had shed 1.71 points, or 0.21%, to 825.75. The Dow Jones Industrial Average was down 8.86 points, or 0.07%, to 13,343.19.

Shares of Brigham Exploration Co. (Nasdaq: BEXP) are in positive territory on news the Austin, Texas-based drilling company has boosted its second quarter production guidance. Production is expected to be between 44 millions of cubic feet equivalent and 46 MMcfe per day, up from the 42 MMcfe to 45 MMcfe per day of production announced in early May, Brigham Exploration reported before the opening bell. The increase is primarily due to strong output from wells in Southern Louisiana. Shares are up $0.01, or 0.17%, to $5.79.