Tag - DMAN

Formula Systems Depository Receipt (Nasdaq:FORTY), Great Atlantic & Pacific Tea Co Inc. (Nasdaq:GAP) and Cepheid (Nasdaq:CPHD) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Prestige Brands Holdings Inc. (Nasdaq:PBH), DemandTec Inc. (Nasdaq:DMAN), Crawford (Nasdaq:CRD.B), American Greetings Corp. (Nasdaq:AM), PAM Transportation Services Inc (Nasdaq:PTSI) and Ark Restaurants Corp. (Nasdaq:ARKR).

Small-cap stocks edged lower Thursday, unable to match gains registered in large-cap indices as the specter of record high oil prices and high unemployment were enough to hold back the Russell 2000 (NYSE:IWM). The Russell closed down 6.56, or 0.98%, at 665.78, the lowest daily close since March 19.

Despite the negative finish, the market did mount a modest solid bounce off the morning lows, finding support above 660, which is the next big test for an index that is once again back in bear market territory and flirting with a hard retest of the March trough.

Even though there seemed to be a little disconnect between the news and price action today, some traders weren’t that surprised with the overall trends. “I think a portion of Wednesday’s sell-off was linked to jitters over the employment report. The market was bracing for a payroll number closer to minus 100,000,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview.

Also, Kalivas said that the weak performance in small caps compared to the Dow and S&P 500 was tied to a wave of profit-taking in small-cap energy shares, which were up sharply in the second quarter.

In some ways, price action today was relatively unsettling as headline figures on monthly employment and a rate hike by the ECB would seem to be bearish, but were embraced as far better than the “whisper” numbers bandied about in a worst-case scenario. In the case of employment data, the headline figure came out at minus 62,000, which was relatively close to the median forecast for a loss of 60,000. However, when the ADP report came out Wednesday at minus 79,000, it prompted some talk that the Labor Department figure could be closer to minus 100,000, which meant that losing “only” 62,000 non-farm jobs suddenly didn’t seem all that bad. It’s a little more tricky to shrug off the 5.5% unemployment rate however, which analysts expected to dip to 5.4% or even better after last month’s dramatic 0.5% leap was supposedly a statistical quirk. Regardless, the market chose to take . . .

Small-cap stocks turned lower, unable to sustain an opening bid. The early rise in stocks — particularly large caps, appeared to take its a cue from a surging dollar in the wake of jobs data that failed to deliver a feared knockout blow and an ECB rate hike that also didn’t crank out the worst scenario. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 10.86, or 1.61%, at 661.48. Price action in small caps was noticeably lagging large-cap index products early today, which is a caution sign for the overall market.

The ISM Non-Manufacturing Survey came out at 10:00 a.m. ET, with the headline number at 48.2, which was well below the median forecast. In addition, the prices paid index was the highest since the data began in 1997. The ISM data pushed all of the major stock index products into negative territory, wiping out the surprising opening rally after soft employment data.

This morning’s initial rally in large-cap stocks and the U.S. dollar was all about the way expectations play into the reality of news. Although the jobs report and weekly claims figures look bearish on the surface, the “whisper” numbers for the report were far worse. A similar situation was in play for the greenback, as the ECB raised rates “only” 25 bps, when the worst-case scenario called for a 50-bp rate hike.

Looking at the real details on the employment report, we see that non-farm payrolls tumbled 62,000, which was slightly worse than the median forecast for a decline of 50,000. However, the unemployment rate remained flat at 5.5% when everyone expected the rate to dip back to 5.4% — perhaps even lower. Remember last month when the market gasped with disbelief at the huge jump to 5.5% from 5%? Remember how everyone said it was a data “quirk” that seasonally counted teens too soon? Well, the Labor Department number crunchers did not deliver a seasonal adjustment “save” for the unemployment rate, which is not good news for the economy.

“The unemployment rate stayed higher in June after soaring in May. This suggests that May’s surge in joblessness was more of a catch-up to the slow rise . . .

Solarfun Power Holdings Co., Ltd. (Nasdaq:SOLF), Super Micro Computer, Inc. (Nasdaq:SMCI) and Silicon Motion Technology Corp. (Nasdaq:SIMO) are among the most actively traded companies in Wednesday's pre-market trading among those with market capitalizations under $750 million.

Salary.com, Inc. (Nasdaq:SLRY), Align Technology, Inc. (Nasdaq:ALGN) and DemandTec, Inc. (Nasdaq:DMAN) are also among the most actively traded small-cap companies in pre-market trading.

Here are the most actively traded small-cap companies in Wednesday's pre-market trading:

The Russell 2000 (NYSE:IWM) managed a miniscule last-minute rise despite news of a weak government jobs report. The small-cap index climbed 0.16 points, or 0.02%, to 713.73, its fifth consecutive rise. The Dow Jones Industrial Average fell 16.61 points, or 0.13%, to 12,609.42.

On a year-to-date basis, the Russell 2000 has declined 6.83%, while the Dow is down 4.94% and the S&P 500 is off 6.67%.

Small-cap stocks began the day in the red following news before the opening that payrolls fell by a larger-than-expected 80,000 in March, according to the U.S. Labor Department. The same report also revised higher the job losses from the previous two months.

The March unemployment rate rose to 5.1%, the highest level in more than two years, from 4.8% in February.

“The job loss numbers today make it all but certain that the economy entered a recession in the first quarter,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company . . .

Orthofix International NV (Nasdaq:OFIX), FirstFed Financial Corp. (NYSE:FED) and Bank of the Carolinas Corp. (Nasdaq:BCAR) were among the new 52-week lows established during Friday's trading among companies with market capitalizations or values under $750 million.

Salary.com, Inc. (Nasdaq:SLRY), DemandTec, Inc. (Nasdaq:DMAN) and 4 Kids Entertainment Inc. (NYSE:KDE) were also among the 52-week small-cap lows.

Here are today's 52-week small-cap lows:

DemandTec, Inc. (Nasdaq:DMAN), Orthofix International NV (Nasdaq:OFIX) and AZZ Inc. (NYSE:AZZ) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $750 million.

Helicos BioSciences Corp. (Nasdaq:HLCS), Blue Coat Systems, Inc. (Nasdaq:BCSI) and Nexity Financial Corp. (Nasdaq:NXTY) are also among the top small-cap percentage losers.

Here are Friday's biggest percentage losers among small caps:

DemandTec, Inc. (Nasdaq:DMAN) shares are plummeting after the maker of consumer management software reported after Thursday’s close that its fourth-quarter loss totaled $1.2 million, or $0.04 per share, compared with a loss of $1.6 million, or $0.24 per share, a year earlier. On an adjusted basis, DemandTec earned $1.3 million, or $0.04 per share, for the three months ended Feb. 29. Wall Street analysts, on average, expected a profit of $0.04 per share.

In Friday morning trading, DMAN shares are plunging 30.22%, or $3.30, at $7.62. For detailed price information and recent news stories about DemandTec, click DMAN.  

The Russell 2000 (NYSE:IWM) is in negative territory on news of a steep decline in March payrolls.

At 10.10 a.m. ET, the small-cap index was down 2.97 points, or 0.42%, to 710.60. The Dow Jones Industrial Average had lost 64.41 points, or 0.51%, to 12,561.62.

Payrolls decreased a more-than-expected 80,000 in March, the U.S. Labor Department reported before the opening. The unemployment rate jumped to 5.1%, the highest level in more than two years, from 4.8% in February.

The numbers confirm fears that economic growth has stalled. The same report also revised up the job losses for the previous two months.

Small-cap stocks opened in the red despite a surprising rise in futures in pre-market trading.

Among the losers is San Carlos, Calif.-based DemandTec Inc. (Nasdaq:DMAN). The provider of consumer demand management software . . .

The Russell 2000 (NYSE: IWM) is little changed this afternoon. At 2:47 p.m. ET, the small-cap index had added 2.57 points, or 0.34%, to 756.63. The Dow Jones Industrial Average (INDU) was up 30.24 points, or 0.23%, to 13,262.71.

The day began with news that Morgan Stanley (NYSE: MS) swung to a fourth-quarter loss due to $9.4 billion in mortgage-related write-downs. Like many of its peers facing similar circumstances, the New York-based financial services giant responded by saying that it will sell as much as 9.9% of itself for a cash infusion of $5 billion. In this case, help came from a Chinese sovereign fund.

Investors were apparently unsure what to make of the news, because the Russell 2000 opened with a decline but quickly moved higher, only to fall again at about 11:30 a.m. ET along with the Dow. At about 2 p.m. both indices rose again.

In other financial news, the U.S. Federal Reserve announced after the start of trading that it auctioned $20 billion in a special operation at an interest rate of 4.65%. The auction, which was held on Monday, saw 93 bidders ask for a total of $61.55 billion, a sign that commercial banks are thirsty for money to help their balance sheets and improve liquidity.

The auction was part of the Fed’s previously announced plan to alleviate the global credit squeeze with periodic lending of funds. Also participating are the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank.

The Russell 2000 (NYSE: IWM) is just above the flat line as investors react to the latest financial news.
 
At 10:41 a.m. ET, the small-cap index had added 1.98 points, or 0.26%, to 756.04. The Dow Jones Industrial Average (INDU) was up 55.44 points, or 0.42%, to 13,287.91.

The futures were little changed this morning on news that Morgan Stanley (NYSE: MS) swung to a fourth-quarter loss due to $9.4 billion in mortgage-related write-downs. Quarterly net revenue was a negative $450 million, compared with a positive $7.85 billion a year ago.

The New York-based financial services giant responded by saying that it will sell as much as 9.9% of itself to a Chinese sovereign fund for $5 billion.

The move is similar to the one made by a number of financial heavyweights that posted losses on investments in securities that contain subprime home loans and then turned to foreign investors for a cash infusion to boost capital.

Today’s news once again highlights the wide reach of the contagion from the subprime mortgage crisis and its ability to infect the largest of financial actors. But the bulls will take solace in the fact that cash infusions will allow the wounded companies to continue their operations.

Elsewhere, a report by the Mortgage Bankers Association showed that mortgage applications for the week ended Dec. 14 decreased 19.5% on a seasonally adjusted basis.

The Market Composite Index was 653.8, compared with 811.8 a week earlier. The four week moving average, a more stable measure, is down 1%.

Stagnating home prices and tighter lending standards have made many Americans unwilling or unable to purchase homes, further contributing the slump in the U.S. housing sector. The ailing housing sector is one of the major factors dragging down U.S. economic growth.

DemandTec, Inc. (Nasdaq: DMAN)
San Carlos, CA.
http://www.demandtec.com

52-week low / high: $8.95 / $20.50
Shares Outstanding:  26.26 million
Market Capitalization:  $431.3 million

You probably don’t know it, but every time you go shopping you indirectly use this company’s products. That’s because DemandTec, Inc. (Nasdaq: DMAN) makes consumer demand management software that helps retailers and consumer product companies better understand customers’ buying habits and optimize merchandise pricing, promotions and discounts.

It’s good space to be in, especially when your client list includes the biggest names in the business.

San Carlos, Calif.-based DemandTec, which went public on Aug. 9, has its software implemented by industry giants Wal-Mart, Best Buy, Safeway, Target, Nestle and Procter & Gamble, among others.

During the second quarter of fiscal 2008, the most recent period for which data is available, the company saw its revenue jump 40% to $14.7 million from $10.4 million a year earlier. However, for the three months ended Aug. 31 the software maker slipped to a net loss of $0.26 million, or $0.02 per share, compared with a net income of $0.14 million, or $0.01 per share, in the second quarter of fiscal 2007.

“Given the early stage of the consumer demand management market, revenue growth and market share are among the company’s top strategic priorities,” said CFO Mark Culhane in a statement. “However, we are also highly focused on driving profitability and cash flow.”

That’s probably why the company currently retains all available funds and says it plans on using future earnings for its business operations. It does not intend on paying cash dividends any time soon.

Wall Street apparently believes in DemandTec’s long-term prospects, because it expects the company to bounce back to profitability in the fiscal third quarter with earnings of $0.03 per share, according to a poll of five analysts by Thomson Financial.

Looking ahead, net income for the entire fiscal 2008 is projected at $0.08 per share, after which it is forecasted to more than triple to $0.28 per share in fiscal 2009. Revenues are projected at $60.48 million, then rising 30.7% to $79.05 million.

It looks likely that DemandTec’s software, and its shares, will be in increased demand.

Note: DemandTec (Nasdaq: DMAN) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, DemandTec displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.

Secrets of the consumer are coming undone, exposed by DemandTec’s breakthrough marketing software. DemandTec, Inc. (Nasdaq: DMAN) leaves little to the imagination: its suite of scientifically infused software  tells retailers and makers of consumer products how to attract sales, price goods, run promotions, mold and predict demand, and drive profits.

Trading publicly since August but started in 1999, DemandTec has grown into a leader of commerce software, sporting a client list of the biggest retailers: Wal-Mart Stores, Inc. (NYSE: WMT), Safeway Inc. (NYSE: SWY), Target Corporation (NYSE: TGT), Best Buy Co., Inc. (NYSE: BBY) and Office Depot, Inc. (NYSE: ODP), among others. It also markets to consumer products companies, including Campbell Soup Company (NYSE: CPB), Cargill, PhilipMorris and Johnson & Johnson (NYSE: JNJ).

Even DemandTec would find it hard to better shape its own returns since its initial public offering at $11 per share. Its shares have rallied 50% in a little more than two months, closing Friday at $16.59. The high so far is $18.55 on Oct. 10, hit as the company rallied after second-quarter returns released Oct. 4 exceeded analyst expectations. Its market capitalization has grown to more than $420 million.

Revenues in the second quarter of fiscal 2008 ended Aug. 31 rose 40% from the previous year to $14.7 million. Sequential growth was 11% from the first quarter. The company gets its revenues from customer agreements that cover the use of DemandTec’s software and services that go with it. Revenue is recognized over the term of the agreement, which tends to run two to three years. On a non-GAAP basis, the quarterly loss was $0.02 per share, versus a penny gain in the same quarter a year earlier.

DemandTec also pleased investors by projecting revenues for full fiscal 2008 of $60.2 million to $60.7 million—up 40% year-over-year. The San Carlos, Calif.-based company said on its quarterly conference call that earnings for the year would be $0.07 to $0.08; in the third quarter, DemandTec expects to earn $0.03. 

“DemandTec’s consumer demand management solutions are clearly resonating within the retail and consumer goods verticals and we believe that the company is in the early stages of a multi-year growth opportunity,” analyst Jason Maynard at Credit-Suisse wrote in a research note following the conference call. Maynard repeated his “outperform” rating, saying that the company’s second-quarter results reaffirmed a very attractive small-cap growth story.

Shares of DemandTec Inc. (Nasdaq: DMAN) are higher following news after the close on Thursday that the maker of consumer demand management software increased its second-quarter revenue 40%.

Revenue for the three months ended Aug. 31 was $14.7 million, compared with $10 million a year earlier. However, the San Carlos, Calif.-based company slipped to a net loss of $0.26 million, or $0.02 per share, compared with a net income of $0.14 million, or $0.01 per share, during the second quarter of 2006.

“Given the early stage of the consumer demand management market, revenue growth and market share are among the company’s top strategic priorities,” said CFO Mark Culhane in a statement.

The company, which completed its initial public offering in August, sells its software to retailers and consumer product manufacturers so they can optimize prices, promotions and other operations.

“DemandTec has established a leadership position with a number of the largest retailers in the world, and we look to leverage this position in order to continue increasing our presence with consumer products manufacturers,” said president and CEO Dan Fishback in a statement. “We are pleased about our fundamental outlook.”

Customers include such industry leaders as Wal-Mart, Best Buy, Office Depot, Johnson & Johnson and Coca-Cola.

At 12:35 p.m. ET, shares of DemandTec Inc. (DMAN) were up $0.72, or 6%, to $13.72.