Tag - NYSE:ABT

Early morning weakness in the markets was made up during the afternoon trading hours. The Dow closed just slightly down at 8,497 for a loss of 0.09%. The Nasdaq was up 0.66% for a close of 1,808 and the S&P 500 lost 0.14% to close today at 910.

Small-cap stock investors were rewarded with a 0.65% gain on the Russell 2000 index, a composition of the 2,000 largest small-cap stocks, that closed at 507 today.

Pharma continued it's leadership position in small-caps with Molecular Insight Pharmaceuticals (Nasdaq:MIPI) up 41.3% today as money continues to move into healthcare stocks. Blue Chip pharma stocks followed their upward trajectory, though not nearly as much as small-caps put in, with Abbot Laboratories (NYSE:ABT) up 2.7%, Merck (NYSE:MRK) moved up 1.5%, and Johnson and Johnson (NYSE:JNJ) posted a 1.2% gain.

The other small-cap leader in pharma was Savient (Nasdaq:SVNT) up 35.5% after receiving the recommendation from a panel of arthritis experts who suggested the Food and Drug Administration approved Savient's new gout drug. By a vote of 14 to 1 the panel recommended that the firm's drug, KRYSTEXXA, be granted marketing approval by the FDA. The action date for the FDA's decision is currently set for August 1, 2009.

Other small-cap gainers for today include Alvarion (Nasdaq:ALVR) up 18.3% on news of its $100 million contract with Open Range Communications; Cayman Islands based United America Indemnity (Nasdaq:INDM), a provider of property and casualty insurance products, up 16.4%; and Connecticut based MTM Technologies (Nasdaq:MTM), up 42.8%.

Decliners were lead by Star Scientific (Nasdaq:STSI) which shed 73% off it's opening price to close today at $1.13. Star lost its patent suit against No. 2 cigarette maker RJ Reynolds Tobacco, a unit of Reynolds American (NYSE:RAI). It alleged that RJ Reynolds had infringed in its patents related to the way of growing and treating tobacco plants to prevent nitrosamines from forming. It's believed that in reducing nitrosamines that the cancer-causing agents in tobacco can be significantly reduced. The jury ruled not only that the patents were invalid, but that they should not have been issues. Star said it would seek a new trial or appeal to the U.S. Court of Appeals.

Other small-cap decliners were lead by financials including National Penn Bancshares (Nasdaq:NPBC) down 23.2%; First Financial Service Corp. (Nasdaq:FFKY) down 18.5%; and Provident Community Bancshares (Nasdaq:PCBS) down 16.4%. Larger capitalization bank shares were not immune to the sell-off in financials with Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) all declining today.

*****On Monday, an influential bank analyst raised his price target for Bank of America (NYSE:BAC) to $19. That implies a 40% jump for BAC. Curiously, this particular analyst didn't cite any improvements to the business or strength in the bank's balance sheet. Rather, he based his analysis on improving investor sentiment.

I don't know about you, but I'm not running out and buying a stock - especially a bank stock - just because investors feel better. No, I'm going to need to see actual evidence that conditions for banks are improving before I wade into those murky waters.

So far, the improvements we've seen in bank fundamentals have been based on accounting changes and government stimulus for the housing market. These measures don't fix the problem; they simply make the symptoms look better.

*****To underscore this point, S&P just cut its ratings on 22 banks because of the potential for further weakening in the sector. The S&P analyst had this to say:

"We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions…Financial institutions are now shedding balance sheet risk and altering funding profiles and strategies for the marketplace's new reality. Such a transition period justifies lower ratings as industry players implement changes."

Bank of America was not among the banks whose outlook was cut by S&P. And I don't care. So long as the sector is weak and the economy is struggling I'm not going anywhere near banks stocks, improved investor sentiment or not.

*****I know Cold War politics are long over, and that Russia and the U.S. are no longer vying for supremacy, but I still can't help thinking "In your face, Russia" when I read that dollar denominated bonds sold by Russia, China and Brazil performed far better than bonds denominated in those countries own currency.

Russian and Brazilian bonds lost money. China's yuan denominated bonds posted small gains. In every case, dollar denominated bonds made money.

It should be obvious that the BRIC countries (Brazil, Russia, India and China) demand that the world's reserve currency should be manipulated to weaken the influence of the dollar is pure politickin'. Or in the words of a currency strategist quoted by Bloomberg, "It's not up to politicians to determine which currency will be the world reserve currency…In the end the market decides it."

In this case, it should be apparent that the market has spoken.

*****So I won't buy their debt, but I will buy Chinese stocks. Yesterday,   SmallCapInvestor PRO added another Chinese stock to the portfolio. China's one of the few countries in the world that's posting any growth. And investors should absolutely own some Chinese stocks right now. If you want to find out what we're holding in SmallCapInvestor PRO just click HERE.

Small-cap stocks edged lower in a fairly weak start to this week’s trading, pulled down by worries about corporate profits as we enter the unofficial start of earnings season this afternoon. Energy and commodity stocks were a source of worry early today as crude oil futures extended the recent slide. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 5.31, or 1.10%, at 475.99.

Crude oil prices tumbled more than $2 a barrel into the U.S. stock market opening, which could pull down energy stocks. The dollar was firm against the euro this morning, which could also weigh on other commodity markets and stocks with close ties to physical markets.

Tying together the commodity and profit themes, Alcoa Inc. (NYSE:AA) kicks off the earnings season after the close today. The firm already announced plans to slash 13,500 jobs and reduce output and will release quarterly results after the close today.

Overseas markets were lower coming into today’s session, which likely weighed on the market as well. In European and Asian trading, bank stocks and chipmakers were taking a hit. Here in the U.S., investors will watch progress on a deal between Citigroup Inc. (NYSE:C) and Morgan Stanley (NYSE:MS), in which Citigroup plans to sell its Smith Barney brokerage unit to raise cash.

The market did take a hit on Friday and the news so far today was soft, but not overly surprising, which could make it difficult to attract fresh selling, especially ahead of a raft of economic numbers later this week. There was an acquisition deal involving a small-cap firm this morning, and when deals get done, it often stokes bullish enthusiasm, especially in the small-cap arena.

Advanced Medical Optics Inc. (NYSE:EYE) will be purchased by Abbot Laboratories Inc. (NYSE:ABT) for $1.4 billion, which sparked a big rise in EYE shares on the opening. EYE was up 144% on the news.

Other small caps on the move this morning included Satyam Computer Sevices Ltd. (NYSE:SAY), which was down 90% as the NYSE finally opened up trading on the embattled Indian outsourcer and the U.S. markets caught up with the . . .

Small-cap stocks are expected to open slightly higher as positive news from large-cap banks and pharma companies are expected to sweep into the small-cap arena and help offset ongoing concerns about the macro-economic environment after troubling inflation data this morning. The Russell 2000 (NYSE:IWM) was up about 0.1% heading toward the open, which would suggest an open near 663.

This morning’s Consumer Price Index report came in at plus 1.1%, the largest advance in 26 years and the year-over-year increase was at 5%, the largest since 1991. Analysts had forecast a CPI headline figure at 0.7%, so the inflation report was clearly a bad number for the market, but it’s not like higher prices right now are a surprise, and the market was able to push Tuesday’s PPI number into the background relatively quickly, so it will be interesting to see if traders will decide to focus elsewhere as the day progresses.

The market will now await testimony from Federal Reserve Chairman Ben Bernanke at 10:00 a.m. ET. During Tuesday’s testimony, the Fed leader painted a somber picture on the inflation and growth fronts, which deepened a morning slide in equities that was eventually recovered amid a steep decline in energy markets.

Speaking of energy, crude oil futures were on the slide again overnight, sinking about $1.50 dollars a barrel toward $137.50 as the market starts to fret about how the soft economy in the U.S. could crimp demand.

Large caps in the news this morning include Wells Fargo & Co. (NYSE:WFC). When the bank posted quarterly results and announced a 10% increase in dividends, S&P 500 futures were down about six handles; after the WFC news, SPX futures jumped into positive territory. Also, Abbott Labs (NYSE:ABT) was up about 1.8% . . .

Small-cap stocks opened lower after the opening bell, experienced a slight bump after the Consumer Confidence report was released at 10 a.m., but are continuing to slide in midday Tuesday trading. At 12:37 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.19, or 1.13%, to 717.18.

The Conference Board reported that April’s Consumer Confidence Index slumped to 62.3, the lowest level in five years, from a revised 65.9 in March. Economists expected the index, which has declined fourth months in a row, to decline to 61.

During a morning press conference, President Bush said Congress should allow more domestic energy production. Higher production would lower record-high gas prices, he said. Bush said gas prices have risen $1.40 per gallon since the Democrats won a majority in Congress, and pointed to stalled efforts to open drilling in Alaska’s Arctic National Wildlife Refuge, which would “likely mean lower gas prices.” The president will consider proposals by Sen. John McCain and Sen. Hillary Clinton to suspend the federal gas tax, but did not provide backing for the proposal. The President also noted that the economic stimulus package is in on the way.

Large-cap movers this morning included drug company Merck & Co. (NYSE:MRK), which was down 8% on news that the FDA rejected a new cholesterol drug. From an overall stock market picture, the news had a somewhat muted impact, because it lifted Merck competitor Abbott Labs (NYSE:ABT) by 3%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, and the financial firm is up 1% in midday trading after dipping in earlier action.

Within the small-cap spectrum, LCA Vision Inc. (Nasdaq:LCAV) is down 17%, gapping lower on weak earnings. Intevac Inc. (Nasdaq:IVAC) was down 23% as well, also on earnings news, and TheStreet.com Inc. (Nasdaq:TSCM) was off 13% on soft earnings. Digi International Inc. (Nasdaq:DGII) shares are slumping more than 19% after the Minnetonka, Minn.-based company reported early Tuesday that its second-quarter revenue totaled $43.1 million, which fell short of Wall Street’s expectation of $51.1 million.

Small-cap stocks opened lower, slightly trimmed losses after the Consumer Confidence report came out at 10:00 a.m. ET, but then retreated right back to pre-release levels. The report showed an upward revision to the March report, which provided a brief bid to the market, but it was not enough to catch hold (at least immediately). At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.84, or 0.25%, at 723.53.

The Consumer Confidence report was pegged at 62.3 in April, which was in line with the forecast of 62, but the March number was revised upward to 65.9 versus 64.5. Still, the April figure was the lowest in five years.

Next on line … President Bush is slated to hold a press conference at 10:30 a.m. ET, where he is expected to talk about the economy.

The opening action was soft in line with overnight declines on a dip in European shares as Deutsche Bank posted its first quarterly loss in five years, and French tire company Michelin tumbled 9% on sloppy earnings.

Large-cap companies influencing trade this morning included drug company Merck & Co. (NYSE:MRK), which was down 7% on news that the FDA rejected a new cholesterol drug. From an overall stock market picture, the news had a somewhat muted impact, because it lifted Merck competitor Abbott Labs (NYSE:ABT) by 4%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, but the financial firm was down 3% in early action.

The S&P 500 stalled approaching the 1,400 level on the latest push upward, and that key figure resistance will be closely watched through the rest of the week’s major economic events. In the Russell 2000, the market yesterday climbed . . .

Medical device maker Kensey Nash Corporation (Nasdaq:KNSY) had a rough go of it last year, what with a product recall, disgruntled investors and a business exit. What a difference a year makes: Kensey is now posting double-digit sales and earnings gains, perhaps at least somewhat consoling its ornery shareholders.

Kensey operates two businesses. Its core unit of biomaterial products — used in orthopedics (particularly sports medicine and spine), cardiology, drug delivery, oral care, general surgery and wound care — keeps investors satisfied. Biomaterials treat, augment or replace tissue and organs; they are used in a variety of resorbable or permanent implants.

Angio-Seal, a vascular closure device now manufactured and sold by St. Jude Medical Inc. (NYSE:STJ) was the Exton, Penn.-based company’s first biomaterial success. Since 2001, the market share of Angio-Seal has more than doubled, to 65% from 31%, with nearest competitor Abbot Laboratories (NYSE:ABT) now at 30%, down from 43% in 2001. 

Few have complaints with Kensey’s biomaterial business. After all, net sales of biomaterials increased 15% to $11.5 million in the second quarter through December, led by a 67% gain in orthopedic product sales to $7.2 million. Sales of spine products increased 140%.

Kensey’s endovascular business is what annoys investors, namely Ramius Capital Group, the company’s largest shareholder. The institutional investment fund started amassing shares of Kensey last summer, after Kensey reported a disappointing quarter, a recall of an embolic protection platform and a more general miscalculation of market demand for its protectors against traveling embolisms. Kensey decided in July to halt its embolic activities and refocus on biomaterials and endovascular devices, which are used in a variety of medical procedures.   

A maddening series of events, to be sure. So Ramius went activist and, by Dec. 31, owned just over 20% of shares. Ramius wants Kensey to refocus on its biomaterials business, and reduce spending and management effort on endovascular … or just get rid of it, among other ideas. Last fall, Ramius placed two of its own on . . .

Many investors in Quidel Corporation (Nasdaq: QDEL) appear to have caught the short-sighted flu following Thursday’s release of disappointing fourth-quarter results and tossed the stock aside like a used Kleenex.

Shares of the San Diego-based health-care-testing maker plummeted 12% in after-hours trading to $16 on heavy volume Thursday. The stock didn’t fare much better Friday, opening at $16.24 and ending the day at $16.55.

The headline numbers culled from the Quidel press release made many investors ill: net income for the quarter ended Dec. 31, 2007 dropped to $8.1 million, or $0.25 per share, from $18.3 million, or $0.54 per share, the year before. Quarterly revenue also declined slightly, to just under $38 million from $38.8 million in the final quarter of 2006.

The diagnosis: a delay in the flu season cut into sales of Quidel’s test kits.

The consensus estimate of analysts polled by Thomson Financial had expected Quidel to post earnings of $0.27 a share, and revenue of $44.8 million.

While not a miss of epidemic proportions, it does leave Quidel investors wondering if this signals serious problems. Ahead of the release, Thomson Financial showed that two analysts rated Quidel a “buy,” one had it a “strong buy” and another had it at “hold.”

Still, it’s unlikely that analysts are going to significantly alter their view of Quidel going forward because of its failure to accurately calculate when the flu was going to strike hardest. Flu-test sales missing from last quarter are likely to show up in the current one, after the Centers for Disease Control reported Friday that the flu is “widespread” in 49 states.

Quidel’s specialty is rapid-diagnostic products at the point of care for infectious diseases and reproductive health. The company has developed a line of testing kits for the professional and consumer markets, including pregnancy, influenza, strep and Chlamydia, with many sold under its QuickVue brand. The Quidel products also are used in oncology and in testing for inflammatory diseases and bone health.

Javelin Pharmaceuticals (AMEX: JAV) is all about controlling pain. The company now has three products it is planning to introduce in upcoming quarters, and approvals would not only ease patient suffering but give investors relief as well.
 
Based in Cambridge, Mass., Javelin is an emerging specialty pharmaceutical company that searches out unmet and underserved needs in pain management. Incorporated in 2005, Javelin’s three product candidates are designed to better relieve pain with fewer adverse side effects and faster results than other treatments. The company has successfully retained intellectual property rights on these products, extending the term of commercial exclusivity.

Rylomine, or intranasal morphine, is one product in Javelin’s pipeline. It is in Phase III development in the United States for acute moderate-to-severe pain and in Phase II studies in Europe. Rylomine works faster than oral morphine and does not require professional medical assistance, as injected morphine usually does. A second product is PM-150, or intranasal ketamine. A formulation of ketamine, a non-opiate, the product is in Phase III trials in both the United States and Europe.

It’s the third offering—Dyloject—that’s of the moment. Dyloject is a formula for injectable diclofenac and is in a Phase III trial in the United States and awaiting approval in the U.K. Diclofenac, an NSAID, is widely prescribed for post-operative pain. Dyloject is in development in the United States for post-surgical pain; in the U.K., it additionally targets acute pain.

The wait for regulatory approval of the U.K. plant for Dyloject has put investors on edge. Originally hoped for by the end of summer, it is still expected soon: in late September at the UBS Global Life Sciences Conference, Fred Mermelstein, founder and president, said the company expects approval in the near term and plans for a U.K. commercial launch in the fourth quarter. Javelin has been hiring sales people for the rollout, which is expected to extend into the EU in 2008.

Just this month, Patricia Bank, analyst at Pacific Growth Equities, said in a research note that she fully expects the Dyloject manufacturing plant to be approved. “However, after speaking with industry consultants, we are resigned to the possibility that the agency may request additional minor corrective actions,” she said, adding that this would be routine practice.