Tag - CHIC

Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX), GHL Acquisition Units (Nasdaq:GHQ.U) and Electro-Optical Sciences Inc. (Nasdaq:MELA) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Books-A-Million Inc. (Nasdaq:BAMM), Charlotte Russe Holding Inc. (Nasdaq:CHIC), American Realty Investors Inc. (Nasdaq:ARL), Flamel Technologies (Nasdaq:FLML), Network Equipment Technologies Inc. (Nasdaq:NWK) and Ista Pharmaceuticals Inc. (Nasdaq:ISTA).

As of press time, 3:05 P.M. Eastern Time, stocks had given up most gains from the morning session. The Dow was at 9,509, up 3 points; the Nasdaq was down less than 3 points, holding at 2,017; and the S&P 500 had given up less than one point to hold at 1,025.

Advances lead declines on the NYSE and Amex while declines were just edging out advances on the Nasdaq.

Crude oil futures were up nearly half a dollar to $74.37 and August gold was trading down at 943.60 per ounce.

Small-cap gainers trading over 1 million shares include Mercer International (Nasdaq:MERC), up 71%; Charlotte Russe Holding (Nasdaq:CHIC), up 26%; and Electro-Optical Sciences (Nasdaq:MELA), up 20%.

*****On Friday, I wrote about how difficult it can be for investors to discern if the information they are receiving is valuable, or even trustworthy. Over the weekend, I read an article from Bloomberg that made my stomach turn. 

Apparently, as institutional investors began to suspect there was trouble brewing for many finance companies back in 2007, they stopped buying these companies' bonds. And by "these companies" I mean companies like AIG, CIT Group, GMAC and even Lehman Brothers.

When finance companies can't sell their bonds to institutional investors, we hear in the news that "capital markets are getting tight" or "disrupted." Of course what that actually means is that institutional investors, the ones who are most "in the know", won't lend money because it's too risky.

So what do companies like AIG or CIT Group do when the institutional investors they've been doing business with for years suddenly decide it's no  longer worth the risk? Why they go too individual investors who won't ask too many questions… 

*****There's a company in Chicago called Incapital, LLC, that underwrites corporate bonds intended for sale to individual investors. Founded by Tom Ricketts, whose father founded TD Ameritrade, Incapital controls 75% of the retail bond underwriting market.
 
In February of 2008, an unnamed Fidelity broker recommended CIT bonds to a customer instead of Freeport McMoran (NYSE:FDX) bonds because at the time CIT bonds were rated higher. The Fidelity broker reportedly said that the CIT bonds were pre-screened.

Less than a month later, credit default swaps (which is basically insurance for bonds in case the company goes bankrupt and defaults) on CIT Group bonds were already at distressed levels. Bloomberg reports that credit default swaps sellers wanted "…$1.75 million upfront and $500,000 a year to protect $10 million of the company bonds from default for five years…"

In other words, the institutional crowd knew full well that CIT bonds were highly risky, as evidenced by the 42.5% insurance cost. And yet that Fidelity broker was selling them to a retired customer as a safe "pres-screened" investment at the exact same time.

In all, CIT Group sold $600 million worth of bonds to unsuspecting individual (retail) investors in the first quarter of 2008. They've traded as low as $0.42 since.

Unfortunately, the story gets worse…

*****Incapital was selling Lehman Brothers bonds to individual investors three months before it went bankrupt. It also helped AIG and Freddie Mac raise money from individual investors.

The Financial Industry Regulatory Authority is investigating whether the "risks to these securities (cutely named InterNotes) were adequately disclosed…"

Sounds like and open and shit case to me.

And as for Ricketts, the owner of Incapital, he and his family are the proud owner of a 95% stake in the Chicago Cubs, Wrigley Field and a 25% percent interest in Comcast SportsNet. The cost: $845 million.

*****On Friday, July 17, rumors of CIT Group's imminent bankruptcy swirled. CIT Internotes were the most heavily traded bonds that day. Hundreds of millions worth of these bonds changed hands. And as you might guess, it was the individual investor who lost the most money during the panic sale.

Individual investors were selling one particular CIT bond that matures in 2016 for $0.42 on the dollar. Institutional investors were selling the same bond for $0.52 on the dollar. And yes, once again, it gets worse.

Traders were taking a 6% commission on the CIT Internotes trades that day, while all other trades were generating a 1% commission.

So not only were individual investors getting worse prices, they were paying higher fees. It's appalling. And there's really only one lesson: be careful out there.

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Until tomorrow,

Ian Wyatt
Editor
Small Cap Investor Daily

P.P.S. My book The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks is coming out on September 14 - visit www.smallcapbook.com to learn more. You can also follow me on http://twitter.com/ianwyatt 

Ian Wyatt is the Chief Investment Strategist of SmallCapInvestor.com and author of The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks. You can learn more about his book and receive small-cap stock picks at www.smallcapbook.com.

Charlotte Russe Holding Inc (Nasdaq:CHIC), Electro-Optical Sciences Inc (Nasdaq:MELA) and Saga Communications Inc (Nasdaq:SGA) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Martha Stewart Living Omnimedia Inc (Nasdaq:MSO), Osiris Therapeutics Inc (Nasdaq:OSIR), Southern National Bancorp Of Virginia Inc (Nasdaq:SONA), Biocryst Pharmaceuticals Inc (Nasdaq:BCRX), ACADIA Pharmaceuticals Inc (Nasdaq:ACAD) and American Commercial Lines Inc (Nasdaq:ACLI).

Charlotte Russe Holding Inc. (Nasdaq:CHIC), MSC Software Corp. (Nasdaq:MSCS) and Electro-Optical Sciences Inc. (Nasdaq:MELA) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sequenom Inc. (Nasdaq:SQNM), Huron Consulting Group Inc. (Nasdaq:HURN), Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX), Smith & Wesson Holding Corp. (Nasdaq:SWHC), Canadian Solar Inc. (Nasdaq:CSIQ) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR).

SXC Health Solutions Corp. (Nasdaq:SXCI), Home Inns & Hotels Management Inc. (Nasdaq:HMIN) and Silicom Ltd. (Nasdaq:SILC) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Fuqi International Inc (Nasdaq:FUQI), US Auto Parts Network Inc. (Nasdaq:PRTS), IncrediMail Ltd. (Nasdaq:MAIL), Evercore Partners Inc. (Nasdaq:EVR), Charlotte Russe Holding Inc. (Nasdaq:CHIC) and SPSS Inc. (Nasdaq:SPSS).

Orexigen Therapeutics Inc. (Nasdaq:OREX), Oriental Financial Group Inc. (Nasdaq:OFG) and Imation Corp. (Nasdaq:IMN) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Charlotte Russe Holding Inc. (Nasdaq:CHIC), AirTran Holdings Inc. (Nasdaq:AAI), Overstock.com Inc. (Nasdaq:OSTK), Fulton Financial Corp. (Nasdaq:FULT), Terremark Worldwide Inc. (Nasdaq:TMRK) and Martin Midstream Partners LP (Nasdaq:MMLP).

Also included among the results: Vivus Inc. (Nasdaq:VVUS), PHH Corp. (Nasdaq:PHH), Mercadolibre Inc. (Nasdaq:MELI), GTSI Corp. (Nasdaq:GTSI), Westmoreland Coal Co. (Nasdaq:WLB) and Oneida Financial Corp. (Nasdaq:ONFC).

Here are the biggest percentage gainers among small caps:

CKX Inc. (Nasdaq:CKXE), Iconix Brand Group Inc. (Nasdaq:ICON) and China Finance Online Co Ltd. (Nasdaq:JRJC) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sigma Designs Inc. (Nasdaq:SIGM), Magma Design Automation Inc. (Nasdaq:LAVA), Charlotte Russe Holding Inc. (Nasdaq:CHIC), Greenfield Online Inc. (Nasdaq:SRVY), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and Lululemon Athletica Inc. (Nasdaq:LULU).

Here are the most actively traded companies among small caps:

Small-cap stocks stumbled Monday, pressured by concerns about the economy, spiking inflation data and jitters ahead of Tuesday’s FOMC announcement. Losses were limited by a sharp decline in crude oil prices, but it wasn’t enough to pull the Russell 2000 (NYSE:IWM) into the green. For the day, the Russell slipped 12.02, or 1.68% to 704.14.

It was an interesting day for the markets as a seller’s mentality gripped investors across nearly all major asset classes. Usually, money will flow from one area to another (like stocks into commodities) but today’s action saw commodities get hammered, even while stocks were soft, and also as credit instruments were weak.

“Mass liquidation is never good,” said Dominic Boyle, market strategist with Lind-Waldock, in an interview with SmallCapInvestor.com. “We’re seeing the biggest one-day decline in commodities since March. It’s especially troubling to see the stock market struggling in the face of steep losses in crude oil,” he said...

Charlotte Russe Holding Inc (Nasdaq:CHIC), Western Refining Inc (Nasdaq:WNR) and Comverge Inc (Nasdaq:COMV) are among the new 52-week lows in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Trico Marine Services Inc (Nasdaq:TRMA), Hansen Medical Inc (Nasdaq:HNSN), Rubicon Technology Inc (Nasdaq:RBCN), CPI Corp (Nasdaq:CPY), EPIQ Systems Inc (Nasdaq:EPIQ) and Northern Dynasty Minerals Ltd (Nasdaq:NAK).

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

Transcat Inc (Nasdaq:TRNS), FreightCar America Inc (Nasdaq:RAIL) and Charlotte Russe Holding Inc (Nasdaq:CHIC) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Libbey Inc (Nasdaq:LBY), First California Financial Group Inc (Nasdaq:FCAL), Ames National Corp (Nasdaq:ATLO), NewBridge Bancorp (Nasdaq:NBBC), Lydall Inc (Nasdaq:LDL) and Nam Tai Electronics Inc (Nasdaq:NTE).

Here are the biggest percentage losers among small caps:

Small caps pulled off their lows midday though remained besieged in the red after a government issued consumer spending report showed a sizeable jump in inflation and after Europe’s largest bank HSBC reported a dismal quarter, warning for continued challenges near term. Traders were also treading carefully ahead of the Federal Reserve’s Federal Open Market Committee meeting Tuesday.

At 12:30 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.87, or 1.24% at 707.29, while the Dow has managed to eclipse the green, up 4.89, or 0.04%, to 11,331.21.

This morning’s personal income report from the Commerce Department highlighted the threat of inflation. While personal income clocked in better than expected at an increase of 0.1% compared with the forecast of a decline of 0.2%, the inflation portion of the report showed the year-over-year PCE price index soared to 4.1%-- the highest rate in 17 years. The rise in personal income was the smallest rise since April 2007 and was owed mostly to the increase in gas prices.

Investors have become increasingly skittish about the threat of inflation, as rising energy prices have served to crimp consumer purse strings and this report served to play to that fear.

With the limelight on the personal income report, investors paid little attention to the better-than-expected factory orders report, which came in at 1.7%, above the consensus forecast for a rise of 0.7%.

The Federal Reserve holds its monthly policy meeting Tuesday and is widely expected to hold the Fed Funds target steady at 2%. Investors will focus on the central bank’s comments in light of anemic second-quarter GDP data and continued inflation fears.

“With personal spending higher than expected in June and a likely upward revision to inventories, U.S. GDP for Q2 is likely to be revised north of 2%,” Andy Busch, global foreign exchange strategist for BMO Capital Markets said in an email. “This will make it very difficult to get the wheels rolling on the ‘recession procession’ of market participants clamoring for a Fed rate cut.”

Charlotte Russe Holding Inc. (Nasdaq:CHIC) has sunk more than 22% to a 52-week low today after Roth Capital downgraded the clothing retailer to “sell” from “hold.” Additionally, the company announced after Friday’s close its chief financial officer, Patti Johnson, would step down effective Aug. 14. Interim CEO Len Mogil will also take on the role of interim CFO.

At 11:52 a.m. ET, shares are at $10.04, down about $2.90 from Friday’s close. Trading volume has skyrocketed to more than 2 million shares, well above the average of 597,000 shares. Shares skidded to a 52-week low of $9.90 just after the opening. The stock has ranged from $9.90 to $20.61 during the past year.

Small-cap stocks pressed lower in early trading, pulled down by losses in overseas equities trading, a swollen inflation picture from morning economic data and ongoing jitters over financial shares. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.60, or 1.20% at 707.55. The Russell is testing short-term support along the 707.50 line; a breach of that point would put the next key support point near 701.00.

This morning’s personal income report provided a mixed picture within the data series, with personal income better than expected, and consumer spending above forecast. However, the market focused on the inflation portion of the report, which showed the year-over-year PCE price index at 4.1%, the highest rate in 17 years. And even though headline personal income was better than expected at 0.1% vs. the projection for a dip of 0.2%, it was still the smallest rise since April 2007. The factory orders report at 10:00 a.m. ET came in at 1.7%, which was well above the forecast for a rise of 0.7%.

In stock market trading around the world, equities were out of favor overnight. Japan’s Nikkei was off 1.2%, Hong Kong’s Hang Seng down 1.5%, and China’s stock market down 2.3%. Elsewhere, Taiwan was down 0.3%, as was Australia. Meanwhile, Singapore was down 1.0%, South Korea off 1.9% and India down 0.5%.

European shares were also down heading into the U.S. stock market open, with financial shares acting as a drag after HSBC reported a 28% decline in first half profits and reported a hefty $14 billion debt write down tied to bad U.S. home loans and other asset losses. Major U.S. banks Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wachovia (NYSE:WB) were down 2.7%, 2.1% and 4.0%, respectively, shortly after the open. Earlier this morning, Oppenheimer analyst Meredith Whitney predicted on CNBC that housing prices were on tap for further losses and she painted a dreary picture for banks, investment banks and brokers.

Some large-caps to keep an eye on today that could spill trends over into the small-cap arena include Chicago Bridge& Iron Co. (NYSE:CBI), which could get a boost after a bullish article in Barron’s over the weekend. Other stocks finding favor in Barron’s include railroad firms Union Pacific (NYSE:UNP) and Canadian National Railway Co. (NYSE:CNI).

Some relief for stocks could come from a pullback in crude oil prices this morning, with futures down more than $1 a barrel, slipping below $124. Bears were pointing to rising output from OPEC on the supply side, and pinched demand from major customers tied to high prices and soft economic growth. However, a new storm was brewing in the Gulf of Mexico, which could keep the bears in check. Elsewhere on the commodity inflation front, platinum prices tumbled 5% overnight as concerns about a global slump in the automotive industry take hold. Copper prices – which are a key indicator of global demand – slumped to 4-month lows. There was some thought that demand from China would basically be at a standstill for a few weeks for the Olympics, which kick off later this week. Also, orange juice and coffee futures were taking a hit this morning, so physical goods price pressures were not a big concern early today for equities.

Small-cap stocks are treading higher in afternoon trading, boosted by healthy earnings on the banking front and mergers and acquisitions news. At 2:07 p.m. ET, the Russell 2000 (NYSE:IWM) was up 2.96, or 0.43%, at 696.04. As oil prices rose and two pharmaceutical blue chips delayed reporting their quarterly results, the broader market was down in afternoon trading. The Dow lost 36.88, or 0.32%, to 11,459.69.

The leading indicators report, which came out at 10:00 a.m. ET, was in line with the forecast for a dip of 0.1% and had almost no immediate impact on the market. Overall, this is a very light week for economic data, but it will be a huge week for earnings results.

Pharmaceutical giants Merck & Co. (NYSE:MRK) and Schering-Plough Corp. (NYSE:SGP) delayed releasing their second-quarter earnings until after the closing to let researchers report results from a study of a cholesterol drug marketed by the two companies in a joint venture.

In what has become an ongoing trend, a major U.S. bank has posted better-than-expected earnings. This time around, the good news was from Bank of America (NYSE:BAC), as the nation’s largest retail bank topped the Street earnings forecast and jumped 7% in the afternoon session. The earnings surprise follows on the heels of better-than-expected results last week from Wells Fargo & Co. (NYSE:WFC), JP Morgan (NYSE:JPM) and Citigroup (NYSE:C).

Within the financial spectrum, government-sponsored mortgage lenders Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) were solidly higher this morning in the wake of weekend comments from Treasury Secretary Henry Paulson, who said that he expects Congress to quickly pass his bail-out program for GSEs. Paulson . . .

Arthrocare Corp (Nasdaq:ARTC), Charlotte Russe Holding Inc (Nasdaq:CHIC) and City Bank (Nasdaq:CTBK) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Franklin Street Properties Corp (Nasdaq:FSP), Astec Industries Inc (Nasdaq:ASTE), Pinnacle Financial Partners Inc (Nasdaq:PNFP), Royal Bank Pennsyl Inc (Nasdaq:RBPAA), Newcastle Invest Corp(Nasdaq:NCT) and GTSI Corp (Nasdaq:GTSI).

Here are the biggest percentage losers among small caps:

Retail clothing company Charlotte Russe Holding Inc. (Nasdaq:CHIC) is down more than 22% in today’s trading after announcing its third-quarter earnings per share had dropped and that its CEO would be retiring. For the third quarter of fiscal 2008, net sales were $193.2 million, up from $180.3 million for the same fiscal quarter a year ago. Earnings per share, however, dropped to $0.31 from $0.40 in the quarter a year earlier. Wall Street had been expecting earnings per share of $0.32 on revenues of $198.8 million. The San Diego-based company said it expects pressure on its stores with the economy still weak and consumer spending at a low.

Also today, CEO Mark Hoffman announced his retirement, effective immediately. Board member Leonard Mogil will act as interim CEO.

In today’s trading, shares are at $13.19, down $3.70 from Friday’s close. Trading volume has soared to more than 1.5 million shares, well above the average of about 400,000.

The Russell 2000 (NYSE:IWM) fell for the first time this week on news of an unexpected decline in February orders for durable goods. The small-cap index lost 3.16 points, or 0.45%, to 702.11. The Dow Jones Industrial Average (INDU) was off 109.74 points, or 0.88%, to 12,422.86.

On a year-to-date basis, the Russell 2000 has shed 8.34%, while the Dow is down 6.35% and the S&P 500 has decreased 8.66%.

Stocks small and large opened in negative territory and never looked up on news before the start of trading that orders for manufactured durable goods fell 1.7% in February, according to the U.S. Census Bureau. Economists were . . .

Shares of specialty retailer Charlotte Russe Holdings, Inc. (Nasdaq:CHIC) are sagging on news before the opening of a third-quarter earnings forecast that’s short of analysts’ expectations. The San Diego-based company, which sells young women’s apparel, reported that it projects net income between $0.27 per share and $0.30 per share for the three months ending June 28. Analysts were looking for earnings of $0.41 per share.

“We anticipate the third quarter will be impacted by the shift of the Easter holiday and spring break periods,” CEO Mark Hoffman said in a statement.

At 1:51 p.m. ET, the stock had lost $2.64, or 13%, to $17.46.

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open in the red on news that U.S. durable goods orders unexpectedly declined in February.

Orders for durable goods fell 1.7% in February, the U.S. Census Bureau reported before the start of trading. Economists were expecting durable goods, which are goods expected to last at least three years, to increase 0.8% after falling a downwardly revised 4.7% in January.

Elsewhere in the same report, orders for nondefense capital goods excluding aircraft, an important measure of business spending, also declined.

The Russell 2000 had a relatively quiet session Tuesday, rising 3.99, or 0.57%, to 705.27. Look for resistance Wednesday at 712 and 724, while support comes in at 700, 694 and 686.

There could be mild volatility today. New Home Sales are released at 10:00 a.m. ET and could spark a little move outside of the norm.

 

The Russell 2000 (NYSE: IWM) futures are down sharply and the small-cap index will open with a drop.

Helping fuel the bearish mood is Apple Inc. (Nasdaq: AAPL), which forecasted after the close on Tuesday that its second-quarter sales growth will slow to 29% from the 35% growth seen in the first quarter.

The reason: the Cupertino, Calif.-based company does not expect to be able to sustain previously strong sales of its trademark iPod.

Otherwise, Apple reported that its first-quarter profit was $1.58 billion, or $1.76 per share, compared with $1 billion, or $1.14 per share, a year earlier.

Contributing to the pessimism is Motorola Inc. (NYSE: MOT), which forecasted that it will swing to a loss in the current quarter due to sluggish demand for its mobile devices.

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:

• Globecomm Systems, Inc. (GCOM), up 14%.
• Corinthian Colleges, Inc. (COCO), up 11% despite news on Tuesday that it has lowered its 2008 guidance.
• Pharmasset Inc. (VRUS), up 6%.

Biggest percentage losers:

• First Cash Financial Services, Inc. (FCFS), down 22% on news of a decline in fourth-quarter profit.
• Charlotte Russe Holdings, Inc. (CHIC), down 9%.
• Hoku Scientific, Inc. (HOKU), down 9% on news of a fiscal fourth-quarter sales guidance below Wall Street’s expectations.

The Russell 2000 (NYSE: IWM) futures have fallen and the small-cap index will open lower.

Consumer prices rose 0.3% in December, the U.S. Labor Department reported this morning. That’s above economists’ projected increase of 0.2% but below November’s 0.8% jump.

However, for all of 2007 inflation has added 4.1%, the highest rate since 1990.

December inflation for all items excluding food and energy was 0.2%, following an increase of 0.3% in November.

Elsewhere, JPMorgan Chase & Co. (NYSE: JPM) reported that fourth-quarter net income declined to below analysts’ expectations due to about $1.3 billion in writedowns for subprime-mortgage investments.

The news comes a day after rival Citigroup Inc. (NYSE: C) declared the largest loss in its history, also due to the meltdown in the subprime mortgage sector.

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:

• VistaCare, Inc. (VSTA), up 20% on news it will be acquired by Odyssey HealthCare Inc. (ODSY) for about $147.1 million.
• Charlotte Russe Holdings, Inc. (CHIC), up 12% on news of a rise in first-quarter sales.
• Life Partners Holdings, Inc. (LPHI), up 11%.

Biggest percentage losers:

• California Pizza Kitchen, Inc. (CPKI), down 22% on news it has lowered its fourth-quarter guidance.
• Courier Corp. (CRRC), down 17% on news of a decline in fourth-quarter profit and revenue.
• Stereotaxis, Inc. (STXS), down 12% on news of fourth-quarter guidance below expectations.

Teen fashion retailer Charlotte Russe Holding, Inc. (Nasdaq: CHIC) said after Wednesday’s close that it expects 2008 first fiscal quarter earnings to be in line with the Street due to a positive October and November. The small cap also reported fiscal fourth-quarter earnings a penny above the consensus on Wall Street.

For the first quarter of fiscal 2008, Charlotte Russe guided for a flat to low single digit decline in comparable store sales and earnings of $0.47 to $0.50 per share. Three analysts polled by Thomson Financial are on average forecasting earnings of $0.48 per share. The company earned $0.55 per share for the first quarter of 2007.

“They are already 40% through their quarter so they have good visibility and are running positive comps,” said FBR Capital analyst Adrienne Tennant. “As we get into December, comps will get easier … the notion that guidance is beatable because it is so conservative is boosting the stock today.” Tennant’s EPS estimate for the first quarter stands at $0.48.

Charlotte Russe said it has seen continued improvement in sales trends so far for the first quarter of fiscal 2008 due to a well-received merchandise line and good inventory management.

“The consumer, who had been holding back given an unseasonably warm October, began to come out in early November and shop for winter clothing now that the weather has turned cold,” said Tennant.

The mall-based retailer also reported fourth quarter results after the closing bell Wednesday. For the last three months ended Sept. 29, Charlotte Russe recorded diluted earnings per share of $0.33, a penny above the Thomson Financial mean earnings estimate or $0.32 per share. For the fourth quarter of 2006, the company netted $0.51 per share. 

The Russell 2000 (NYSE: IWM) is in negative territory on news of somewhat bearish economic reports and poor earnings from major corporations.

At 10:18 a.m. ET, the small-cap index was down 4.73 points, or 0.60%, to 777.74. The Dow Jones Industrial Average (INDU) had lost 4.80 points, or 0.04%, to 13,226.21.

Consumer prices added 0.3% in October, according to the U.S. Labor Department before the start of trading. The result was expected by economists and mirrors September’s price increase.

Core prices, which exclude the volatile costs of food and energy, added 0.2%, the same rise as in September.

The numbers tell us that inflation remains broadly in check, despite the recent spike in the price of oil and higher energy costs.

However, consumer prices have added 3.5% on a year-over-year basis, while core prices have increased 2.2%. The U.S. Federal Reserve has said that it prefers core prices to stay in the range between 1% and 2%.

In other economic news, the labor market unexpectedly softened for the week ended Nov. 10.

In a separate report the Labor Department said that weekly jobless claims climbed 20,000 to 339,000, the highest level since April. Economists were expecting a much smaller rise of 3,000 from an upwardly revised level of 319,000 the previous week.

Elsewhere, shares of J.C. Penney Company, Inc. (NYSE: JCP) are trading in the red following news that the department store narrowed its third-quarter income and lowered its fourth-quarter outlook.

Isilon Systems, Inc. (Nasdaq: ISLN), Penwest Pharmaceuticals (Nasdaq: PPCO) and Tiens Biotech Group Inc. (AMEX: TBV) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

The investment gurus have been warning about it all summer and now it’s finally beginning to rear its ugly head. Retailers are starting to show signs of flailing and Charlotte Russe Holding, Inc. (Nasdaq: CHIC) is no exception. The fashion retailer was downgraded today to “neutral” from “outperform” by JP Morgan.

After disappointing results last night from Charlotte Russe’s largest competitor, The Wet Seal, Inc. (Nasdaq: WTSLA), warmer weather and underperforming sales at Charlotte Russe’s California and Florida-based stores, JP Morgan analyst Anna Andreeva said she perceives that September comps for Charlotte Russe will fall short of expectations.

In addition, given that the small cap’s competitor, Wet Seal, is struggling, the analyst thinks Charlotte Russe could miss fourth quarter earnings. She also anticipates management will lower guidance for the first quarter of fiscal 2008. 

Andreeva lowered her estimates today for 2007 and 2008. For fiscal year 2007, ended Sept. 30, the analyst predicts earnings of $1.41, down from previously forecasted $1.45. For fiscal year 2008, Andreeva anticipates earnings of $1.54, down from $1.64. Twelve analysts surveyed by Thomson Financial are on average expecting earnings of $1.45 for 2007, and $1.60 for 2008.

“…Implications of WTSLA news for this competitive fast fashion space and little visibility ahead, we would rather stay on the sidelines,” Andreeva wrote in a research note today.

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Great Wolf Resorts, Inc. (Nasdaq: WOLF) and China Automotive Systems, Inc. (Nasdaq: CAAS) are among the most actively traded companies in Monday pre-market trading among those with market capitalizations under $500 million: