Tag - BWLD

Leo Fasciocco specializes in finding stocks breaking out of basing patterns; in his The Ticker Tape Digest he sees a potential breakout with Buffalo Wild Wings (NASDAQ: BWLD).

"The company has continued to expand its restaurants. It is projecting a 25% increase in revenues. It has benefited from an ability to raise menu prices without losing customers.

"BWLD's long-term chart shows the stock climbing from 10 in 2003 when it went public to a peak at 47 in 2007. It has shown choppy action since then weathering the bear market very well.

"The stock is pushing over its recent peak with expanding volume. That indicates good technical action. A key breakpoint would occur at $43.60.

"The stock's momentum indicator is strongly bullish. The accumulation - distribution line is in an up trend and has already broken out to the upside. That could well be a lead signal that the price of the stock will do the same.

"This year, analysts forecast a 22% increase in BWLD's earnings to $1.72 a share from $1.41 a year ago. Looking out to 2010, the Street sees earnings climbing 21% to $2.09 a share.

"Technically, BWLD is one of the best performing restaurant stocks. The stock is now in a five week flat base and most importantly an 18-week, cup-and-handle base. A breakout would send it closer to its all-time at $47.75.

"Institutional sponsorship is above average. The largest fund holder is 4-star rated Fidelity Growth Company Fund with a big 10.5% stake. It was a recent buyer of 10,000 shares.

"The largest buyer lately was Franklin Small-Mid Cap Growth Fund which picked up 500,000 shares. BWLD has 17 million shares outstanding.

"We are very bullish on BWLD. A big quarter could be the key to the stock doing well. We suggests accumulation of a partial position in BWLD.

"Further buying can be done on a breakout over $43.60. A protective stop can then be placed at 41. We are targeting BWLD for a move to 52 after a breakout."
 

SunPower (Nasdaq:SPWRA), DryShips Inc. (Nasdaq:DRYS) and UAL Corp. (Nasdaq:UAUA) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Buffalo Wild Wings Inc. (Nasdaq:BWLD), Geron Corp. (Nasdaq:GERN), Kendle International Inc. (Nasdaq:KNDL), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), True Religion Apparel Inc. (Nasdaq:TRLG) and Zoran Corp. (Nasdaq:ZRAN).

Two leading advisors -- both known for an expertise in technical analysts -- are bullish on the prospects for Buffalo Wild Wings (Nasdaq:BWLD), which operates and franchises casual food restaurants in 38 states.

Here's an overview of the stock from Joseph Hargett, an analyst with Schaeffer Investment Research, and Richard Schmidt, editor of The Stellar Stock Alert.

Richard Schmidt explains, "You’ve got to love the action of Buffalo Wild Wings. Last month, the stock jumped up nearly 25% in one day and continued to move up.

"The jump up left a big gap on the chart, a bullish sign of strength. And it moved the stock up over the 200-day moving average. BWLD is up over 100% from its November low.

"Most restaurant stocks aren’t doing very well. So it’s significant that BWLD is bucking the trend. It shows real strength and growing customer demand.

"The big jump came on stellar fourth-quarter earnings. The company posted better-than-expected results, with earnings growing 28% to $0.43 a share.

"In addition, total revenue was up 32.6%, same- restaurant sales also jumped. Company-owned stores saw their sales up 4.5%. And franchised stores were up 2.5%.

"Better yet, the company believes its growth prospects for the rest of the year are achievable. So we expect BWLD to continue this uptrend. BWLD is a buy."

Joseph Hargett says, "BWLD has plenty of momentum on its side. The stock has bested the SPX by more than 61% on a relative-strength basis during the past 60 trading days.

"On the charts, BWLD has enjoyed the support of its 10-day and 20-day . . .

The Russell 2000 (NYSE:IWM) closed up 2.47, or 0.55%, at 450.42. Small caps are now down 9.8% for the year, while the Dow is off 9.6% and the S&P 500 is down 7.5%. Some of today’s small-cap gainers were DuPont Fabros (NYSE:DFT), Buffalo Wild Wings (Nasdaq:BWLD) and P.F. Chang’s China Bistro (Nasdaq:PFCB).

Other Market Watch highlights today included:

• Equity markets in Europe and Asia were lower overnight, with financial and consumer product stocks on the slide, which plays into the soft initial tone.
• The retail sales report headline figure came in at plus 1%, which was well ahead of the projection for a slide of 0.7%.
• The weekly unemployment claims report showed that 623,000 workers filed for benefits last week, which was above the projection of 610,000.
• The number of people forced to file for continuing claims marked a record high; the 4-week moving average for claims was at a 26-year peak.
• Retail shares also were struggling today, despite the bullish print on headline monthly retail sales data. The S&P Retail Index was down 1.8%.
• Small-cap stocks edged higher Thursday, a nice reversal from this morning when the market appeared to be in freefall mode.
• Energy markets had a little bit of a divergence today between equities and cash, with crude oil prices closing down 5.4%, losing $1.96 a barrel to $33.98.
• Copper prices tanked in the morning, but also found some buying interest as the stock market righted the ship.

Small Cap Gainers:

• DuPont Fabros popped 37% after reporting Q4 and full-year 2008 results, and enteting into a loan agreement. See (NYSE:DFT).
• Buffalo Wild Wings Inc. gapped higher and shot up some 34% as the . . .

DuPont Fabros Technology Inc. (NYSE:DFT), Buffalo Wild Wings Inc. (Nasdaq:BWLD) and Maui Land & Pineapple Co Inc. (NYSE:MLP) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $2 billion.

Small-cap stocks plunged early Thursday, dismissing an upbeat retail sales report to focus on dreary corporate profit reports and another somber reading on the employment picture. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was off 9.39, or 2.10% at 438.55, while the Dow was down 2.70% and the big-cap barometer was now at the lowest point since November.

The retail sales report came in at plus 1.0%, which was quite a bit better than the forecast for a slide of 0.7%. Although the upside surprise did help lift stock index futures off the pre-market lows and might have had a brief supportive tone into the regular stock market opening, the general perception of the retail sales report was that it was a “head-scratcher.”

“This increase broke a record six-month string of declines during which spending fell at a 21.1% annualized rate,” Steven Wood, chief economist with Insight Economics, said via email. “However, both November's and December's earlier estimated declines were revised to be modestly deeper. Despite this month's gain, retail sales have fallen at a 16.3% annualized rate over the past three months. Over the past year, retail spending has decreased by a near record 9.7%. Spending at motor vehicle dealers jumped by 1.6% despite a 7.1% decline in unit sales, which is puzzling,” Wood said.

The rise in retail sales also didn’t seem to fit with anecdotal reports on store traffic and consumer retrenchment amid a deepening recession and rising unemployment. Speaking of unemployment, the weekly claims report showed that 623,000 Americans were forced to file for unemployment benefits last week, which was a mild dip from last week’s 26-year peak, but still a larger number than forecast. The number of workers forced to remain on unemployment rolls rose to a new record high and the four-week moving average on claims was at a 26-year high. Simply put, . . .

Buffalo Wild Wings Inc. (Nasdaq:BWLD), DuPont Fabros Technology Inc. (Nasdaq:DFT) and First California Financial (Nasdaq:FCAL) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $2 billion.

Also included among the results: Maui Land & . . .

Small-cap stocks opened lower, tugged down by a sobering picture of the jobs situation in the United States after the monthly employment report showed a staggering number of jobs have been lost in November. At 9:59 a.m. ET, the Russell 2000 (NYSE:IWM) was down 9.58, or 2.18%, at 429.95.

The Labor Department report showed that unemployment climbed to 6.7%, the highest rate since 1993. Meanwhile, the jarring loss of 533,000 jobs in November was the worst decline since December 1974. What’s more, job losses for September and October were revised upward, meaning that the United States shed 1.25 million jobs in the last three months alone and nearly 2 million so far this year. Our neighbors to the north are also feeling the pain, as data this morning revealed that job losses in Canada climbed to the highest point in 26 years.

It will be interesting to see if investors are still willing to bet that all these terrible economic reports are already priced into the stock market and try to jump-start a rally as the day progresses. There has consistently been talk that these dreadful economic reports are simply not surprises anymore; however, one cloud hanging over the market is the fate of U.S. automakers. Some speculate that if General Motors Corp. (NYSE:GM) is forced . . .

DryShips Inc. (Nasdaq:DRYS), Hercules Offshore Inc. (Nasdaq:HERO) and Tessera Technologies (Nasdaq:TSRA) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Silver Standard Resources Inc. (Nasdaq:SSRI), Canadian Solar Inc. (Nasdaq:CSIQ), Pan American Silver Corp. (Nasdaq:PAAS), ViroPharma Inc. (Nasdaq:VPHM), AeroVironment Inc. (Nasdaq:AVAV) and Buffalo Wild Wings Inc. (Nasdaq:BWLD).

Here are the most actively traded companies among small caps:

Small-cap stocks were in rally mode Tuesday morning, taking flight in response to signs of a thaw in the credit market freeze, oversold conditions that brought out bargain hunters and a sizable jump in overseas equities markets. From an economic data perspective, today’s consumer confidence report and Case-Shiller Home Price Index releases were somber at best.  Today’s small-cap gainers are Apria Healthcare Group Inc. (NYSE:AHG), Syms Corp. (Nasdaq:SYMS) and Smith Micro Software (Nasdaq:SMSI).

Other Market Watch highlights today included:

• Crude oil prices were up about $1 a barrel this morning, helped along by a mild dip in the U.S. dollar against the euro.  
• European energy stocks also were in rally mode today, which should provide a lift to U.S. energy stocks as well.  
• After a global rout in equities Monday, investors came in today with relief that stocks in Asia and Europe were in rally mode instead of deepening the slide. 
• The dip in Libor rates also corresponds with the FOMC meeting, which began today and which should result in a rate cut Wednesday afternoon. 
• Small-cap stocks were in rally mode Tuesday morning, currently up 2% and taking flight in response to signs of a thaw in the credit market freeze.

Small Cap Gainers:

• Apria Healthcare Group Inc. is rallying 45%. Its stock will cease to trade publicly when a merger with The Blackstone Group is completed; shares will be converted into $21 cash. See (NYSE:AHG).  
• Syms Corp. is up 18%, trying to reverse Monday’s decline to fresh closing lows. See (Nasdaq:SYMS).
• Dell Selects Smith Micro Software to Deliver Universal Connection Management Software, up 5%. See (Nasdaq:SMSI).  
• Schnitzer Steel cautioned markets in early F09 have significantly weakened and it is uncertain when improvements may be seen. (Nasdaq:SCHN).  

Small Cap Losers:

• Ceradyne reports Q3 net income tumbles 40%, guides 2008 below the Street. See (Nasdaq:CRDN).  
• The nation’s largest rent-to-own operator Rent-A-Center reduces Q4 outlook on severity of financial crisis, down 33%. See (Nasdaq:RCII).  
• Martha Stewart misses analysts estimate by penny, issues Q4 and 08 revenue below Street. See (NYSE:MSO).
• Buffalo Wild Wings’ EPS fall short of Street view, expects sales and EPS growth in 25% range for full year, just shy of the Street.  (Nasdaq:BWLD).  

DryShips Inc. (Nasdaq:DRYS), Rigel Pharmaceuticals Inc. (Nasdaq:RIGL) and Atheros Communications Inc. (Nasdaq:ATHR) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Buffalo Wild Wings Inc. (Nasdaq:BWLD), Pan American Silver Corp. (Nasdaq:PAAS), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Genoptix Inc. (Nasdaq:GXDX), Hercules Offshore Inc. (Nasdaq:HERO) and BE Aerospace Inc. (Nasdaq:BEAV).

Here are the most actively traded companies among small caps:

According to culinary lore, it was 1964 when Teressa Bellissimo, first lady of Buffalo’s Anchor Bar on Main Street, took delivery of what was supposed to be the chicken backs and necks for her signature spaghetti sauce. By mistake, she got the least useful part of the chicken: wings. Instead of tossing them, she split them in two, dropped them in the deep fryer, and gave them away at the bar with celery and blue-cheese dressing left over from her antipasto.

Had Teressa simply discarded those unwanted wings, there would never have been a Buffalo Wild Wings, Inc. (Nasdaq:BWLD), one of the top 10 fastest growing restaurant chains in the country. Founded in 1982 by two hungry guys near The Ohio State University campus, the company went public in 2003 with its successful combination of wings, beer and sports, and hasn’t stopped growing since. The Minneapolis-based restaurant owner and franchiser finished the second quarter of 2008 with 515 restaurants in 37 states, and impressive year-over-year growth in revenue and earnings from both its company-owned and franchised units. Unlike its competitors in the casual-dining business, Buffalo Wild Wings has somehow found a way to convince diners that in spite of $4-per-gallon gas, declining home values and the shrinking roll of cash in their pockets, they should come out for a cold beer, a bucket of Buffalo wings with Blazin’ hot sauce and a game of Sauce N’ Slide.  

One of the biggest reasons for the attraction is the product itself. Each restaurant features 20 different domestic and international beers on tap, 14 sauces for the signature wings and extensive media centers, including projection screens and as many as 40 TVs. The food is good and the environment is fun and energetic. Diners not interested in what’s on TV can enjoy the piped in music while they play trivia or video games.

For those with children or an aversion to fried foods, menus have been expanded to include salads and sandwiches, and TV monitors are as likely to be showing . . .

Buffalo Wild Wings Inc. (Nasdaq:BWLD) has jumped 16% in pre-market trading today after the restaurant chain reported after Tuesday’s close second quarter earnings that beat Wall Street estimates. For the quarter ended June 29, net earnings were $5.6 million, or $0.31 per share, compared with $3.8 million, or $0.22 per share, for the same period a year ago. Revenues were up 29% from a year ago to $97.9 million. Analysts were expecting earnings per share of $0.27 on revenues of $94.5 million.

“Same-store sales continue to be strong in July, with increases of over 6% at company-owned and over 2% at franchised restaurants. We are in final preparation for the start of football season, with a redesigned menu rolling throughout the system this week, our HDTV and remodel projects nearing completion, our media and local marketing plans set, and our operations team trained and energized. We expect the purchase of our nine Las Vegas franchised locations to close in late September, said Sally Smith, president and CEO, in a statement.

Ahead of today’s opening, shares are at $35.69 at 9:06 a.m. ET, up $4.65 from Tuesday’s close. The stock has ranged from $18.25 to $43.85 during the past year.

Small-cap stocks are expected to open higher, underpinned by surprisingly stout employment figures on this morning’s ADP Employment Report. The Russell 2000 (NYSE:IWM) was up about 0.3% in after-hours trading, which suggests an open near 716.50.

The ADP headline figure for non-farm payrolls came in at plus 9,000 jobs, which was a big surprise over the projection for a decline of 58,000 jobs. The immediate market response to the ADP report was a rally in the U.S. dollar, a decline in Treasury futures and a four-handle upside pop in S&P 500 futures. Although the ADP report has been less accurate in forecasting the Labor Department’s monthly employment release over the last year, the move into a positive number should provide a little more optimism about the employment picture heading into Friday’s big report.

Also on the data front, the MBA Mortgage Applications Survey came out this morning and was down 14.1 to the lowest level since December 2001. The combination of weak home sales and slumping home equity continue to take a toll on mortgage applications.

Crude oil futures were hovering near $122 dollars a barrel this morning, down just a tad from Tuesday’s close and basically marking time ahead of the weekly inventory report later this morning, which is expected to show a 200,000-barrel . . .

A 28-year veteran of small- cap growth research and investing, Mary Lisanti is president and chief investment officer of AH Lisanti Capital Growth, where she manages the firm’s small-cap growth strategy. Lisanti has spent 12 years as a small-cap analyst and strategist on Wall Street, holding such positions as CIO of ING Investments, senior portfolio manager for the small-cap growth and mid-cap growth strategies at Strong Capital Management and managing director and head of the small/mid-cap team at Bankers Trust Company. Lisanti was named Fund Manager of the Year in 1996 by Barron's.

What qualities do you look for in a small-cap stock? Have your criterion changed given the current macro environment?

“We are growth investors. Therefore what matters to us most is the ability of the company to grow its earnings at an above average rate for a period of time. We do a lot of research, such as interview management, talk to customers, look at research reports and 10Ks and 10Qs, among other things. The majority of companies in which we invest tend to have a product or service we believe is unique and different; they tend to have management teams that we think highly of, and they have strong balance sheets — no debt and several dollars per share in cash.

“My criterion has not changed. The only difference is we probably spend even more now with management.  The quality of management really makes the difference. It’s huge. In the 80s, you would score them in your research reports. People have gotten out of that habit because everything’s been easy and now, now I think . . .

Small-cap stocks tumbled hard from intraday highs Wednesday as investors digested another rate cut by the Federal Reserve, and the statement accompanying the move. By the close, Russell 2000 (NYSE:IWM) shares were down 2.75, or 0.38%, at 716.17.

Although the overall decline for the day was tame, the slide off the FOMC peak was relatively dramatic. Small-cap stocks initially pushed higher on the rate cut news, but then descended into a freefall that saw the Russell shed 13 handles or nearly 1.8% from high to low.

The bullish capitulation seen in equities after the FOMC news could have simply been a classic case of a “buy the rumor, sell the fact” market response, especially considering that stocks pushed higher into the news. The S&P 500 Index cracked figure resistance at 1,400 shortly after the FOMC decision, but quickly joined small-cap shares on the retreat as investors shied away from the market. It’s worth noting that the Russell clearly led the overall stock market on the way down as selling enthusiasm kicked into gear about 30 minutes after the rate cut announcement.

“I think the markets were perfectly positioned for the Fed, and are now worried about the payroll report,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview with SmallCapInvestor.com. “Financial and retail shares have not confirmed the rally and this is a technical negative that may have sparked profit taking. Small caps are down mostly on a beta trade, but property casualty and regional banks are the weakest names. This may be a negative reaction to the FOMC and Cash America is off on an Ohio bill that limits interest on payday loans,” Kalivas said. He also anticipated that small caps would tread water sideways to lower heading toward Friday’s employment report, as traders would likely be unwilling . . .

Buffalo Wild Wings (Nasdaq:BWLD), RadiSys Corp. (Nasdaq:RSYS) and Lithia Motors, Inc. (NYSE:LAD) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $750 million.

Protection One, Inc. (Nasdaq:PONE),  Advanta Corp. (Nasdaq:ADVNB) and Sucampo Pharmaceuticals, Inc. (Nasdaq:SCMP) are also among the top small-cap percentage gainers.

Here are Wednesday's biggest percentage gainers among small caps:

Small-cap stocks edged slightly higher this morning, bouncing off an overnight dip when this morning’s GDP report came in above expectations, and allowed investors skittish about a potential glut of recession headlines to breathe a sigh of relief. At 9:59 a.m. ET, the Russell 2000 (NYSE:IWM) was up 2.74, or 0.38%, at 721.66.

The Chicago Purchasing Manager’s Survey, out at 9:45 a.m. ET, was slightly above expectations at 48.3 and appeared to have very little impact on equity market trading.

After a recent lull in economic data, the numbers charge kicked into gear this morning, with GDP, ECI, Chicago Purchasing, and even ADP’s employment survey coming out. Although GDP was an important number, it’s just a warm-up for the FOMC announcement this afternoon. And just to prove the old axiom of “no rest for the weary,” the market will have to navigate through ISM Manufacturing numbers, Personal Income data and vehicle sales Thursday, then the big employment release Friday morning.

Let’s begin with the aforementioned GDP release. When it came out slightly better than forecast (up 0.6%), it missed the “official” recession gauge by being in positive territory (if you’re curious, the true official recession definition requires two consecutive negative-growth quarters). It’s worth noting that although GDP averted negative growth territory, we’ve still seen two quarters of extremely sluggish growth and the U.S. economy is clearly struggling as consumers deal with . . .

Everyone likes a deal when they go out to eat: two-for-one appetizers or half-price drinks can be sources of exuberance for restaurant frequenters. But with casual dining restaurant stocks plummeting this year on recession fears, happy hour has now extended itself into the stock market, especially in the case of Buffalo Wild Wings Inc. (Nasdaq: BWLD) and BJ’s Restaurants Inc. (Nasdaq: BJRI). The two franchises are at bargain prices and have fundamentally strong restaurant concepts, consistent track records, good balance sheets and cash flow, and above-average long-term growth outlooks.   

Buffalo Wild Wings was founded in 1982 and went public in 2003. The chain consists of nearly 500 casual dining restaurants operating in 37 states, with a menu that is competitively priced and positions the company between the fast food and casual dining segments. Aside from wings, the menu offers chicken tenders, shrimp, hamburgers and other sandwiches, wraps, tacos, appetizers and salads. Beers from local and/or regional micro-breweries are available on-tap at its restaurants as well as bottled beer, wine and liquor. Each Buffalo Wild Wings restaurant is designed to include an extensive multi-media system, a full bar and an open layout. Customers can choose from counter service, dining table service or carry-out. 

Buffalo Wild Wings achieved its stated 2007 performance goals that included 15% unit growth, 20% revenue growth and 25% net income growth. At year-end 2007, the company was operating 493 locations, up from 429 locations one year earlier.

Buffalo Wild Wings’ revenues grew 21% year-over-year in 2007 to $330 million from $278 million and per-share earnings increased 30% year-over-year to $1.10 from $0.92. The 2007 revenue and income gains discussed above are comparables based on two 52-week periods; in actuality, FY 2006 was 53 weeks long whereas FY 2007 had 52 weeks. 

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index is ready to rise on news of January U.S. retail sales.

Small-cap stocks are set for a bullish opening following news that retail sales unexpectedly rose 0.3% in January. That beats economists’ forecast of a decline of 0.2% and is an improvement over December’s 0.4% drop.

Sales excluding autos also increased 0.3%, more than the projected 0.2%.

The numbers are good news for those worried that there is a pullback in consumption that will send the economy into recession.

Although the retail sales report represents the biggest calendar event risk of the week, the 10:00 a.m. ET business inventory data might generate a minor ripple in trading later in the morning.

Daily support and resistance levels remain static after Tuesday’s range-bound action: look for support today at 688, 680 and 674, with resistance at 710 and 721.

The Russell 2000 (NYSE: IWM) posted solid gains today, propelled by news of unexpectedly strong economic growth and a drop in the federal funds rate. The small-cap index added 11.87 points, or 1.45%, to 828.02. The Dow Jones Industrial Average (INDU) gained 137.54 points, or 1%, to 13,930.01.

On a year-to-date basis, the Russell 2000 has increased 5.16%, while the Dow has added 11.67% and the S&P 500 has gained 9.37%.

The U.S. Federal Reserve decided to lower the federal funds rate, the rate at which commercial banks make overnight loans to each other, to 4.50% from 4.75% in an effort to keep the economy growing.

The central bank lowered the federal funds rate to 4.5% and the discount rate to 5% in an effort to stimulate economic activity and keep the country from dipping into a recession. The move will make it cheaper for consumers and businesses to borrow money.

However, Fed policymakers signaled that Wednesday's cut may be all that is needed to deal with the economy's troubles.

“Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time,” the Federal Open Market Committee said in statement released at about 2:15 p.m. ET.

Stocks, which declined sharply minutes before the decision was announced, raced ahead to their highest levels during the session.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in the green midway though the session on news of unexpectedly strong GDP growth. At 1:08 p.m. ET, the small-cap index had advanced 7.43 points, or 0.91%, to 823.58. The Dow Jones Industrial Average (INDU) had increased 68.12 points, or 0.49%, to 13,860.59.

The bulls are having a party with half the session left to go, as investors react to news of unexpectedly upbeat third-quarter economic numbers and await the U.S. Federal Reserve’s decision on interest rates.

Gross domestic product rose at a seasonally adjusted annual rate of 3.9% during the third quarter, the U.S. Commerce Department reported before the opening. That’s better than the forecasted increase of 3.2% and a sign that the economy is dealing well with the ongoing slump in the housing sector.

Breaking down the numbers shows that exports, consumer spending and business investment posted increases.

In other economic news, a report from business outsourcing solutions provider Automatic Data Processing, Inc. (NYSE: ADP) estimated that private employers added 106,000 jobs in October. That’s above the average for the previous three months and a sign that the labor market remains tight.

FARO Technologies, Inc. (Nasdaq: FARO), Document Sciences Corp. (Nasdaq: DOCX) and Buffalo Wild Wings (Nasdaq: BWLD) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) opened with modest gains this morning following news of stronger-than-expected economic growth in the third quarter.

At 10:29 a.m. ET, the small-cap index had added 1.70 points, or 0.21%, to 817.85. The Dow Jones Industrial Average (INDU) was up 51.46 points, or 0.37%, to 13,843.93.

Gross domestic product rose at a seasonally adjusted annual rate of 3.9% during the third quarter, the U.S. Commerce Department reported. That beats projections of an increase of 3.2%.

The increase of 3.9% represents the economy’s strongest performance since the first three months of 2006, when GDP added 4.8%. Helping the economy grow more than expected and overcome the drag from the ailing housing sector were a rise in exports, an increase in consumer spending and business investment.

In other economic news, a report from business outsourcing solutions provider Automatic Data Processing, Inc. (NYSE: ADP) estimated that private employers added 106,000 jobs in October.

Elsewhere, the U.S. Federal Reserve continues its two-day policy meeting, with a decision on the target interest rate expected to be announced at 2:10 p.m. ET. The Fed is expected to either cut the federal funds rate 0.25% or leave it unchanged. That’s higher than average private-sector employment growth during the last three months.

Origin Agritech Ltd. (Nasdaq: SEED), ClickSoftware Technologies Ltd. (Nasdaq: CKSW) and Buffalo Wild Wings (Nasdaq: BWLD) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $750 million:

Buffalo Wild Wings (Nasdaq: BWLD) shares are down after the casual restaurant operator’s announced after the close that its third-quarter earnings totaled $4.27 million, or $0.24 per share, below analyst estimates of $0.26 per share and compared with $3.53 million, or $0.20 per share, a year earlier.

The Minneapolis, Minn.-based firm’s revenue grew 21% to $82.4 million, slightly above Wall Street projections of $81.37 million and compared with $68.3 million during the same period of 2006.

"Same-store sales remained strong, at 8.3% for company-owned and 5.9% for franchised restaurants, critical in delivering a 20.5% increase in total revenue,” CEO Sally Smith said in a statement. “Average weekly sales for company-owned restaurants grew by 8.8% and for franchised locations by 6.8%, demonstrating the strength of our new restaurant openings.”

Smith said the company is committed to achieving its growth targets for 2007 and 2008 of 15% unit growth, 20% revenue growth and 25% earnings growth.

In after-hours trading, BWLD shares are down 10.07%, or $3.92, at $34.99. Over the last 52 weeks, shares have ranged from $22.88 to $47.75.

Wireless communications coverage solutions provider Telestone Technologies Corp. (Nasdaq: TSTC) announced Thursday it won the bids for the TD-SCDMA trunk amplifiers and combiners from China Mobile LTD TD-SCDMA trial networks.

Ethonal producer Pacific Ethanol Inc. (Nasdaq: PEIX) hired Douglas Jeffries as its new CFO. Jeffries previously served as has more vice president of finance and chief accounting officer at eBay Inc as well as worked in finance and technology at GenCorp, Red Herring Communications, Cardinal Health and Price Waterhouse Coopers.

Neurochem Inc. (Nasdaq: NRMX) announced it received a third recommendation from the European Data Safety Monitoring Board to continue its ongoing European Phase III clinical trial for tramiprosate, Neurochem's investigational product candidate for the treatment of Alzheimer's disease.

These are the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $500 million:

Oxnard, Calif.-based wireless products provider CalAmp Corp. (Nasdaq: CAMP) reported after Thursday’s close that net income in the fourth quarter was $0.73 million, or $0.03 per share, compared with $3.5 million, or $0.15 per share in the fourth quarter of fiscal 2006.  Analyst Oppenheimer & Co. responded by downgrading shares to “neutral” from “buy”.  The stock has lost $0.08, or 1%, to $7.82.

Shares of Dendreon Corp. (Nasdaq: DNDN) are rising despite news during trading on Thursday that the Seattle-based biotechnology company is delaying the release of its prostate cancer drug Provenge until 2008.  Dendreon has also reduced its headcount by 15%.  Shares are up $0.39, or 7%, to $6.38.

Shares of DivX Inc. (Nasdaq: DIVX) fell by $2.00, or 10%, to $18 on heavy volume in after-hours trading today after the San Diego, Calif.-based digital media company reported first-quarter earnings that came in below analysts’ estimates. For the three months ended March 31, DivX reported net income of $3.7 million, or $0.10 per share, on revenue of $20.2 million, compared with net income of $3.3 million, or $0.11 per share, on revenue of $14.1 million in the 2006 first quarter. Seven analysts polled by Thomson First Call had estimated earnings per share of $0.14 on revenue of $19.8 million. In just the first half-hour of extended-hours trading, more than 1.36 million shares had changed hands, compared with an average three-month daily volume of about 657,000 shares.

Shares of Novatel Wireless Inc. (Nasdaq: NVTL) rose by $0.79, or 4.2%, to $19.50 on heavy volume late today after the wireless broadband access solutions provider raised its 2007 non-GAAP earnings guidance by more than 50% to $1.00 to $1.05 per share. Twelve analysts polled by Thomson First Call were expecting earnings per share of $0.64 on revenue of $365.9 million. For the first quarter ended March 31, San Diego-based Novatel reported non-GAAP net income of $12.1 million, or $0.40 per diluted share, on revenue of $110 million. Analysts had estimated earnings per share of $0.28 on revenue of $98.3 million.