Tag - GMET

Small-cap stocks opened higher, bolstered by news that the White House extended a rescue loan to beleaguered automakers, which sparked money flow into stocks and away from credit markets. Commodities are on weak footing this morning and credit ratings for a bevy of financial firms were lowered overnight, which could limit some buying enthusiasm. Investors will be on the lookout for pockets of unexpected volatility today as “quadruple witching” expirations take place.  Some of today’s small-cap gainers are MAP Pharmaceuticals (Nasdaq:MAPP), AbitibiBowater (NYSE:ABH) and China Eastern Airlines Corp.  (NYSE:CEA).

Other Market Watch highlights today included:

• Obscured by this morning’s auto enthusiasm was news that credit ratings agencies were downgrading financial and bank companies overnight .
• As for crude oil, the market on “black gold” was down $1.50 a barrel into the stock market open, which could weigh on energy shares again.  
• With the U.S. dollar in rally mode this morning (up about 2% against the euro), it’s likely that commodity markets in general will struggle.  
• Heading into today’s action, stock markets overseas were on the defensive, with Asian equities slipping about 0.6%.

Small Cap Gainers:

• MAP Pharmaceuticals gapped higher and gained 47% on news of a deal with AstraZeneca to develop a pediatric asthma drug. See (Nasdaq:MAPP).  
• AbitibiBowater addresses NYSE listing standards; shares rise 27%. See (NYSE:ABH).
• China Eastern Airlines Corp. Ltd. rose 12%, jumping in response to news out of China overnight that jet fuel prices were cut by the Chinese government. See (NYSE:CEA).  
• GeoMet up 12% on lower-than-average volume. See (Nasdaq:GMET).  

Small Cap Losers:

• PDL spins off biotech assets, moves headquarters to Tahoe; shares plummet 26%. See (Nasdaq:PDLI).  
• Ceradyne down 20% in pre-market on very light volume, giving back some of the immense gains the stock saw over the last week. See (Nasdaq:CRDN). 
• Intrepid Potash, Inc. falls over 12% after lowering FY 2008 production guidance. See (NYSE:IPI).  
• Gardner Denver to cut 9% of salaried workforce; slashes forecast. Shares fall 5.3%. See (NYSE:GDI).  

Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares. Today’s small-cap gainers are GeoMet (Nasdaq:GMET), Logility, Inc. (Nasdaq:LGTY) and ETEL (Nasdaq:ETEL).

Other Market Watch highlights today included:

•    Financial shares got a lift from a G20 statement over the weekend saying that a coordinated action was needed to fight the global financial crisis.  
•    At 9:54 a.m. ET, the Russell 2000 was up 5.81, or 1.15% at 511.60
•    Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares.
•    Overnight, China shares were up 7.4%, Japan’s Nikkei climbed 5.8%, Hong Kong was up 3.5%, India rallied 5.7%, Australia was up 1.3% and European shares were up about 2% heading toward the U.S. open.  
•    Crude oil prices were up more than $4 a barrel, while copper prices climbed 8% in Asian trading.

Small Cap Gainers:

• GeoMet up 19% ahead of its Q3 earnings release and conference call scheduled for today. See (Nasdaq:GMET).  
• Logility, Inc. up 18% on light volume. See (Nasdaq:LGTY).
• EGS Acquisition Co. commences tender offer to acquire all issued and outstanding common shares and ADSs of eTelecare Global Solutions. Shares of ETEL pop 16%. See (Nasdaq:ETEL).  
• Smith & Wesson up over 16% on no fresh news, lower-than-average volume. See (Nasdaq:SWHC).  


Small Cap Losers:

• GSK, XenoPort to withdraw and resubmit new drug application requesting Solzira approval for restless legs syndrome. XNPT shares dive 17% in pre-market. See (Nasdaq:XNPT).  
• Fuel Tech Inc. reports Q3 results, lowers FY 2008 outlook. Shares drop 9% in pre-market. See (Nasdaq:FTEK).  
• Circuit City files For Chapter 11; shares lose more than half their value, shares plummet 64% in pre-market. See (NYSE:CC).  

While GeoMet, Inc. (Nasdaq:GMET) has seen impressive growth and is in the hot field of unconventional gas production, the Houston, Texas-based company currently feels like it’s undervalued.

“We’ve always considered ourselves to be a growth story and now we also consider ourselves to be a very good value story,” CFO William Rankin said during a presentation at an April Oil and Gas Investment Symposium of the International Petroleum Association of America.

For a stock that’s trading at around $7 but has analyst targets of $10 to $14, he might have a point.

GeoMet bills itself as the second-largest pure play in coalbed methane gas in the country. With all the hullaballoo over shale gas, it’s easy to overlook some of the advantages of CBM — notably that it occurs at shallower levels than most conventional or shale reservoirs and it tends to be more productive.

Methane gas has long been recognized as a hazard in coal mining but it is only in the last 20 years or so that it has been commercially produced and distributed as natural gas. Current production of coalbed methane is about 1.25 trillion cubic feet a year, or 9% of overall U.S. natural gas production. The country has an estimated 100 tcf in recoverable CBM.

Whereas conventional natural gas is stored in the pores of the reservoir rock, coalbed methane adheres to the surface of the coal (adsorption), allowing large quantities of gas to be stored at relatively low pressures. This means that, in contrast to conventional natural gas, production actually increases as pressure decreases — first by pumping out the water that fills the pores and then by production of the gas. While most wells will be less productive the longer gas is being produced, CBM . . .

GeoMet Inc (Nasdaq:GMET), Shore Financial Corp (Nasdaq:SHBK) and Integral System Inc (Nasdaq:ISYS) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

American Israeli Paper Mills Ltd (Nasdaq:AIP), Gorman-Rupp Co (Nasdaq:GRC) and Beneficial Mutual Bancorp Inc (Nasdaq:BNCL) are also among the new 52-week highs.

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