Tag - ABM

Stocks extended losses from Monday, unable to push higher after weak housing data was released and Fed Chairman Ben Bernanke made somber statements to Congress about the economic situation. Some of today’s small-cap gainers were ABM Industries (NYSE:ABM), Talbots (NYSE:TLB) and Thor Industries (NYSE:THO).

Other Market Watch highlights today included:

• The Russell 2000 (NYSE:IWM) closed down 6.79, or 1.85%, to 361.01. The Dow closed down 0.55% to 6,726.02 and the S&P 500 closed down 0.64% to 696.33.  The S&P 500 closed below 700 for the first time since 1996.
• For the year, the Russell is now down 27.72%, the Dow is down 23.36% and the S&P 500 is down 22.91%.
• Global stock markets fell further Tuesday, after news broke Monday that small-cap insurer AIG reported the biggest quarterly loss in corporate history, and HSBC Holdings slashed its dividend, revealed it needed to raise $18B from shareholders.
• Citigroup said today that in order to help the unemployed, it would start a new program to lower some mortgage payments to an average $500 for three months.
• Small-cap GM says February U.S. sales will be "exceptionally weak."
• Oil prices rose during Tuesday's trading, settling up $1.50 to end the day at $41.65. 
• This morning, Bernanke reiterated to Congress that any semblance of economic recovery hinges on the U.S. government’s ability to stabilize ailing financial markets.
• New data today revealed that the number of homebuyers purchasing existing homes fell 7.7% to a new low of 80.4 in January. Economists were predicting a January reading of 85.1.

Small Cap Gainers:

• ABM Industries announced first-quarter fiscal 2009 financial results; shares climbed 24%. See (NYSE:ABM).
• Talbots closed a $200M credit line, suspended its dividend and froze . . .

Pharmasset Inc. (Nasdaq:VRUS), ABM Industries Inc. (Nasdaq:ABM) and Einstein Noah Restaurant Group Inc. (Nasdaq:BAGL) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BNC Bancorp (Nasdaq:BNCN), iPCS Inc. (Nasdaq:IPCS), TNS Inc. (Nasdaq:TNS), PDL BioPharma Inc. (Nasdaq:PDLI), Associated Estates Realty Corp. (Nasdaq:AEC) and Superior Well Services Inc. (Nasdaq:SWSI).

After a smack-down on Thursday small-cap stocks continued their slide into Friday. The Russell 2000 remained submerged midday after the unemployment rate jumped more-than-forecasted, adding to the economic case against the economy.

At 1:32 p.m. ET, the Russell 2000 (NYSE:IWM) was down 6.11, or 0.85%, at 712.51, off its lows of the session.

The jobs data disseminated from the Labor Department this morning sent equities into a tailspin, as the nation’s unemployment unexpectedly jumped to the highest level since December 2003. Unemployment rose to 6.1% from 5.7%, while economists were forecasting the rate to clock in roughly flat. Adding to the gloomy jobs report, non-farm declined by 84,000, wider than the forecasted decline of 75,000 jobs. This marked the eighth consecutive monthly decline in payrolls, which hasn’t happened since the 2001 to 2002 time frame.

“So far this year, 605,000 jobs have been lost,” Steven Wood, chief economist with Insight Economics, said in an email. “The economy has clearly slipped into a jobs recession because the housing meltdown and credit market turmoil has spread to the broader economy. Over the past year, the number of unemployed people has increased by more than 2.24 million and the unemployment rate has increased by 1.4 percentage point. In the post World War II period, every time the unemployment rate has jumped by a full percentage point or more in the course of a year, the economy has been in a recession.”

With the spotlight on the jobs market, oil’s slide midday did little to change the market’s direction. Crude oil futures had slid about $2 a barrel to $105 and change midday, as oil traders sold off the commodity in the face of weakening demand worldwide. The greenback was mixed against the euro and the yen. The euro had climbed to $1.4257 midday.

The market also overlooked that home foreclosures grew at the most rapid pace in nearly 30 years during the second quarter, as tough credit conditions persisted.

ABM Industries Inc. (NYSE:ABM) tumbled by 20% this morning after the company issued a narrowed fiscal 2008 guidance and said that it had earned less in its fiscal third quarter than at least one analyst was projecting.
 
For the three months ended July 31, the New York-based facility services contractor earned $16.4 million, or $0.32 per share, up from $12 million, or $0.24 per share, in the year-ago quarter. One analyst polled by Thomson First Call was expecting the company to earn $0.39 per share for the three-month period.
 
In a statement issued after the market closed on Thursday, ABM also narrowed its fiscal 2008 guidance of net income from continuing operations to be between $1.10 to $1.15, compared with analysts' expectations of $1.25. The firm cited a general decline in discretionary spending in some customer sectors and regions for the decision.
 
By late morning, the stock is at $20.83, down $5.08 from Thursday's close. More than 538,000 shares have changed hands compared with a three-month average volume of 268,275 shares. The stock has traded as low as $18.13 and as high as $27.47 in the past year.
 
For detailed price information and news stories on ABM Industries, click ABM.

If you can’t find a place to park, don’t blame Standard Parking Corp. (Nasdaq: STAN). The company, which handles more than one million spaces in hundreds of U.S. cities, shirks risk and confidently returns 10% to 15% each year, putting to rest the dingy days of garages past.

Standard manages parking and ancillary services for major office buildings, residential and commercial properties, airports, shopping centers, event complexes, hotels and medical centers. The Chicago-based company handles parking throughout the United States, including Chicago’s O’Hare International Airport, Harvard’s Medical School in Boston and Los Angeles’ Westfield Shoppingtown. Standard views university parking management as an opportunity, particularly considering that campus populations can reach the size of small cities.

Standard’s business model works because it makes its clients money. A pleasant, if not delightful, parking experience can fatten profits. Tenants, visitors, prospective shoppers and everyone else leave a destination with a parking impression, either good or bad. Standard, which owns no facilities, wants clients to outsource parking services so that Standard can make more money for them. In turn, Standard retains clients and adds new clients.

Speaking at the William Blair and Co. Small Cap Growth Conference on Oct. 1, CEO James Wilhelm said the company historically makes clients 15% to 20% more than they previously made. Management also has been good to investors, returning an annualized 48% on investment for the past three years.

The company has earned a solid reputation since incorporating in the 1990s and going public in 2004; its parking roots go back to 1929. Standard’s client retention rate is 89% in the 12 months through June, consistent with 92% the previous year. Profit per location is rising, too, as Standard adds services. For the second quarter ended June 30, average gross profit increased 11%, to $10,600 from $9,500.