Tag - CFX

Brooks Automation Inc. (Nasdaq:BRKS), Knot Inc. (Nasdaq:KNOT) and Einstein Noah Restaurant Group Inc. (Nasdaq:BAGL) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Horsehead Holding Corp. (Nasdaq:ZINC), Aceto Corp. (Nasdaq:ACET), Diedrich Coffee Inc. (Nasdaq:DDRX), Diodes Inc. (Nasdaq:DIOD), Luminex Corp. (Nasdaq:LMNX) and Colfax Corp. (Nasdaq:CFX).

Chiquita Brands International Inc. (Nasdaq:CQB), Williams Partners LP (Nasdaq:WPZ) and Oritani Financial Corp. (Nasdaq:ORIT) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: MainSource Financial Group Inc. (Nasdaq:MSFG), Textainer Group Holdings Ltd. (Nasdaq:TGH), Copano Energy LLC (Nasdaq:CPNO), Colfax Corp. (Nasdaq:CFX), RC2 Corp. (Nasdaq:RCRC) and Associated Estates Realty Corp. (Nasdaq:AEC).

Oshkosh Corp. (Nasdaq:OSK), DryShips Inc. (Nasdaq:DRYS) and Selective Insurance Group Inc. (Nasdaq:SIGI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Rubicon Technology Inc. (Nasdaq:RBCN), Dreman/Claymore Dividend & Income Fund (Nasdaq:DCS) and Stream Global Services Inc. (Nasdaq:OOO) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Excel Maritime Carriers Ltd. (Nasdaq:EXM), Quest Energy Partners L P (Nasdaq:QELP), Parallel Petroleum Corp. (Nasdaq:PLLL), Colfax Corp. (Nasdaq:CFX), China Digital TV Holding Co Ltd. (Nasdaq:STV) and Minefinders Corporation Ltd. (Nasdaq:MFN).

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

MedQuist Inc (Nasdaq:MEDQ), Global Industries Ltd (Nasdaq:GLBL) and Rackable Systems Inc (Nasdaq:RACK) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Otter Tail Ord Shs (Nasdaq:OTTR), Sun Hydraulics Corp (Nasdaq:SNHY), Fortress Investment Group LLC (Nasdaq:FIG), A Power Energy Generation Systems Ltd (Nasdaq:APWR), Colfax Corp (Nasdaq:CFX) and I-Flow Corp (Nasdaq:IFLO).

Here are the biggest percentage losers among small caps:

Tom O’Halloran is a partner and director of Small Cap Growth Investments at Lord Abbett. He is responsible for managing the firm’s small-cap and micro-cap growth products, overseeing the investment teams, and directing the investment strategies.

O’Halloran has been in the investment business for 20 years. Prior to joining Lord Abbett, O’Halloran was an executive director and senior research analyst at Dillon Read/UBS Warburg from 1988 to 2001. Before beginning his career in the financial services industry, he was a trial lawyer from 1980 to 1986. O’Halloran earned an MBA from Columbia University, a JD from Boston College and an AB from Bowdoin College. He also is a holder of the Chartered Financial Analyst designation.

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

“There are 3,000 stocks that we look at that we could own. We try to screen out 80% of those through growth hurdles and size parameters in terms of market cap, and financial strength in terms of debt-to-asset ratios. Then we look at the 600 or so, or 20%, of the names. The first inquiry is a two step process after that. First we identify the best businesses then we pick stocks based purely on their growth, not on takeover potential, turnaround potential or valuations. Organic growth is the best kind of growth, but if there’s a strategy of acquisitions that is multi year and sensible to supplement their organic growth, then that’s fine. We require 12% minimum top-line growth, and we want earnings to be growing at least as fast. Our portfolio on average is growing closer to 25%. 

“In terms of what represents a good business, we’re looking at four things: the first two at the microeconomic level, or inside the doors of the company, and three and four are considering the environment in which they function.

1) “When we saw Morningstar at $750 million on the IPO, we said, ‘This is like Moody’s. Moody’s is $20 billion. This is a jewel of a business.”  We saw Mercadolibre, Inc. (Nasdaq:MELI) at $1 billion and we said, “This is the eBay of South America. This is a great business.’  

2) “Is it a good business? Does it have a strong management team? Is the management competent and credible? It’s very important at the small-cap level to have good management. [In terms of] competency, we look at Mickey Drexler at J. Crew. He worked magic at The Gap. He redefined casual clothing in America. He’s a genius of a retailing executive and an example of a highly competent . . .

(NYSE:SB)
Priced on May 28
$190 million proceeds
$378.4 million post-money valuation

Safe Bulkers operates a fleet of 11 ships used to carry dry bulk, which is uniform cargo that can be stored in loose piles such as grain or iron ore. To get it from place to place, shippers use dry-bulk ships, and Safe Bulkers is one of the fleet operators they call. The company’s ships have an average age of 2.6 years, making it one of the youngest fleets in the industry. The company’s largest customer is agribusiness company Bunge Limited (NYSE:BG), which contributed 29.9% of 2007 revenues. Another agribusiness firm, Cargill International, represented 21.1% of revenues, and Daiichi Chuo Kisen Kaisha, a shipping company, was responsible for 18.2% of sales. That’s a total of 69.2%, a proverbial blessing and curse. Safe Bulkers has most of its fleet time accounted for, but the loss of one of those customers would be devastating.

Operating the ships uses a lot of capital, but the business makes money. In 2007, Safe Bulkers posted net income of $87.8 million on revenue of $161.1 million. Cash provided by operating activities was $278.5 million. The ships need ongoing maintenance, but they also have value; Safe Bulkers historical financial results often include gains from sales of ships.

The company is owned by Vorini Holdings, an investment firm controlled by the Hajioannou family of Greece. Vorini sold all of the stock in this offering, and will still control more than 80%. The company itself did not get any of the proceeds. Nevertheless, Safe Bulkers has plans to expand its fleet to 19 ships in the next two years. The filing range was $20 to $22, so the $19 price was a little . . .

Central Garden & Pet Co. (Nasdaq:CENT), Gibraltar Industries Inc (Nasdaq:ROCK) and Overhill Farms Inc (Nasdaq:OFI) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.

RH Donnelley Corp (Nasdaq:RHD), China Technology Development Group Corp (Nasdaq:CTDC) and Colfax Corp (Nasdaq:CFX) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

www.colfaxcorp.com
(NYSE:CFX)
Scheduled for the week of May 5
$300.8 million estimated proceeds
$659.7 million estimated post-money valuation

Many investors favor boring industries over whatever is the sexy, go-go sector at the moment. They’ll trade scintillating cocktail-party conversation for predictable returns in an industry that is easy to understand, which makes it easy to track a company’s progress. If you’re one of these folks who prefers mundane to modern, then Colfax Corporation — a manufacturer of pumps for industrial applications — might be for you.

Colfax specializes in big pumps for big uses, such as in oil wells, ships and chemical manufacturing facilities. Many of its customers, including the U.S. Department of Defense, aren’t affected by economic cycles. Other customers are economically sensitive, and right now, the global economy is in their favor. Colfax does two-thirds of its business outside of the United States, and demand for pumps is growing. India and China are building infrastructure, and just about every nation is demanding more oil and gas. Although pumps seem basic, they are critical to the operations that they are used in. That gives the company some pricing power, and it has an opportunity to grow revenues in the future by designing pumps that are more powerful . . .