Tag - FRP

The late-session snapback rally on Tuesday brought stocks back from the depths of Monday's losses, but many observers still say that we're not out of the woods yet.

What's stalking investors in the dark woods is a bear market. Small-cap stocks on Monday were down 25 percent from the Russell 2000's most recent high of 869 on May 2nd, but Tuesday's buying spree pushed the Russell 2000 back to 'just' a 20 percent decline - the threshold for a bear market.

Still, the latest pronouncement from Federal Reserve policymakers brought the buyers out of the woods and off the sidelines, given the availability of many bargain prices for stocks.

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. Some of today’s small-cap gainers are Liquidity Services Inc.  (Nasdaq:LQDT), Asbury Automotive Group (NYSE:ABG) and FairPoint Communications (Nasdaq:FRP).

Other Market Watch highlights today included:

• With crude oil prices wobbling and the jobs picture darkening, energy shares were in retreat mode early today.  
• Overnight, India, the second-largest country on the planet in terms of population, announced their first price reduction for gas prices in two years.  
• Worries about demand destruction amid a global recession continue to pummel energy prices.
• Data this morning revealed that job losses in Canada climbed to the highest point in 26 years.

Small Cap Gainers:

• Liquidity Services Inc. rose 11% as the online auction company received an earnings-tied boost. See (Nasdaq:LQDT).   
• Asbury Automotive Group up 10% on very light volume. See (NYSE:ABG).  
• FairPoint Communications up 5% after declaring fourth-quarter dividend. See (NYSE:FRP).
• Hersha Hospitality Trust announces fourth-quarter dividends. See (NYSE:HT).  

Small Cap Losers:

• Movado shares drop 14% after Q3 earnings drop 41%. See (NYSE:MOV).  
• Berry Petroleum Company down 25% as energy is getting pummeled today. See (NYSE:BRY). 
•  International Coal Group also feeling the heat today with other energy stocks; shares are down 20% near a 52-week low of $1.50. See (NYSE:ICO).  
• Orbitz Worldwide falls 13% as online travel sites slump on lower traffic. See (NYSE:OWW).  

Fairpoint Communications Inc. (Nasdaq:FRP), Isle of Capri Casinos Inc. (Nasdaq:ISLE) and KVH Industries Inc. (Nasdaq:KVHI) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: AtriCure Inc. (Nasdaq:ATRC), Nexxus Lighting Inc. (Nasdaq:NEXS), Investors Title Co. (Nasdaq:ITIC), NewBridge Bancorp (Nasdaq:NBBC), Brookfield Homes Corp. (Nasdaq:BHS) and Providence Service Corp. (Nasdaq:PRSC).

Here are the biggest percentage losers among small caps:

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 . . .

The Russell 2000 (NYSE:IWM) managed a small rise on news of mixed economic reports. The small-cap index climbed 1.30 points, or 0.18%, to 713.57, its fourth consecutive rise. The Dow Jones Industrial Average added 20.20 points, or 0.16%, to 12,626.03.

On a year-to-date basis, the Russell 2000 has shed 6.85%, while the Dow is down 4.82% and the S&P 500 has retreated 6.75%.

Small-cap stocks spent the morning in negative territory on news before the opening that jobless claims for the week ended March 29 unexpectedly increased 38,000 to 407,000, according to the U.S. Labor Department. That’s the highest level in more than two years and a sign that economic growth has stalled.

The small-cap index recovered and almost touched the flat line at about 10 a.m. ET on news that the U.S. service sector contracted less than expected in March.

But stocks quickly lost their footing again, falling to a session low of nearly 706 at 11 a.m. ET, before beginning a slow climb upward. The bullish sentiment, which . . .

The Russell 2000 (NYSE:IWM) posted a modest gain despite news of bearish comments from U.S. Federal Reserve chairman Ben Bernanke. The small-cap index rose 1.62 points, or 0.23%, to 712.27. The Dow Jones Industrial Average fell 45.44 points, or 0.36%, to 12,608.92.

On a year-to-date basis, the Russell 2000 is down 7.02%, while the Dow has shed 4.94% and the S&P 500 has retreated 6.87%.

“It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke told the congressional Joint Economic Committee after the start of trading.

The comment was made public before the start of the testimony, resulting in a bearish opening.

The assessment contradicts a report by payroll company Automatic Data Processing, Inc. (NYSE:ADP) before the start of trading showing . . .

The Russell 2000 (NYSE:IWM) ended March with a solid gain on news of a better-than-expected gauge of business activity and a plan to overhaul financial regulation. The small-cap index rose 4.79 points, or 0.70%, to 687.97. The Dow Jones Industrial Average added 46.49 points, or 0.38%, to 12,262.89.

On a year-to-date basis, the Russell 2000 is down 10.19%, while the Dow has shed 7.55% and the S&P 500 has declined 9.92%.

Small-cap stocks began the session mixed, trading with no clear direction as investors awaited economic and financial news.

The National Association of Purchasing Management-Chicago reported after the start of trading that its purchasing managers’ index rose to higher-than-expected level of 48.2 in March from 44.5 in February. The news eased concerns of a decline in business investment even though readings below 50 signify a contraction.

Also grabbing the headlines was a plan by the Bush administration for a major overhaul of the existing financial regulation. The proposal, outlined by U.S. Treasury Secretary Henry Paulson after the opening, would broaden the powers of . . .

Arrhythmia Research Technology, Inc. (AMEX:HRT), Fairpoint Communications, Inc. (NYSE:FRP) and VCG Holding Corp. (Nasdaq:VCGH) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $750 million.

JER Investors Trust Inc. (NYSE:JRT), Trubion Pharmaceuticals, Inc. (Nasdaq:TRBN) and US BioEnergy Corp. (Nasdaq:USBE) are also among the top small-cap percentage losers.

Here are today's biggest percentage losers:

Shares of FairPoint Communications, Inc. (NYSE:FRP) sunk to a 52-week today after the communications services provider’s announcement that it closed its previously publicized merger with Northern New England Spinco Inc., which owned Verizon Communications' landline and related operations in Maine, New Hampshire and Vermont.

Shares of FairPoint sputtered 19%, or $1.92, to a 52-week low of $8.34 at 11:50 a.m. ET. Shares of FairPoint have been trading in the range of $8.55 to $19.83 for the past 52 weeks.
 
In connection with the merger, Spinco paid Verizon a $1.16 billion cash payment and $551 million of 13 1/8% senior notes due in 2018 that were issued by Spinco. FairPoint now holds total senior secured debt of $1.64 billion and $551 million of senior notes.

Additionally, FairPoint forked over 54 million shares of common stock to Verizon, resulting in 89 million shares outstanding for FairPoint. 

As a result of the closed transaction, FairPoint is now the eighth largest telephone company in the United States. On a combined pro forma basis FairPoint said as of December 31, 2007, it has approximately 1.9 million total access line equivalents, including 1.11 million residential voice access lines; 0.51 million business voice access lines and 0.29 million HSD subscribers, including DSL, cable modem and wireless broadband. 

For detailed price information and recent news stories about FairPoint Communications, click FRP.