Tag - HLYS

Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon. Financial and banking shares were on the mend today after being noticeably weak in recent days, helping to counter any dread from this morning’s gloomy housing starts report. Some of today's small-cap gainers are The Pennsylvania Real Estate Investment Trust (NYSE:PEI), Terra Industries (NYSE:TRA) and Brandywine Realty Trust (NYSE:BDN).

Other Market Watch highlights included:

• Crude oil prices were on the rise this morning, up about $1.30 per barrel ahead of the open, which should provide a boost to energy stocks.  
• It is widely expected that the Fed will slash another 50 basis points off the Fed funds rate today, lowering the rate to 0.50%.  
• Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon.  
• Even though energy markets were on firm footing this morning, industrial metals were lower, including copper, lead, tin and nickel. 

Small Cap Gainers:

• The Pennsylvania Real Estate Investment Trust jumped 12.1% on news that the company completed a financing deal. See (NYSE:PEI).  
• Merrill Lynch upgrades a bevy of fertilizer stocks including Terra Industries, which is 10% higher on the news. See (NYSE:TRA).
• Brandywine Realty Trust up 7% after announcing a Q4 2008 dividend last week. See (NYSE:BDN).   
• Macerich inks Mervyns tenants, lands $250M loan; shares climb 6%. See (NYSE:MAC).  

Small Cap Losers:

• Tech company Stec lowers Q4 revenue view, shares fall 15% in pre-market. See (Nasdaq:STEC).  
• Cabot Corporation "repositioning" in light of weaker demand; shares tumble 10%. See (NYSE:CBT). 
• Monolithic Power Systems lowers guidance below estimates; shares dip 4% in pre-market. See (Nasdaq:MPWR).  
• Heelys down 4% in pre-market on very light volume. See (Nasdaq:HLYS).

After opening in the red, the Russell 2000 has broken into the green and remains at its highs on the session, as traders shrugged off inflation data, higher crude prices and an increase in jobless claims and bargain hunters scoured for beaten down financials and embraced news that larger loans financed by Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) will be permitted to trade.

At 12:19 p.m. ET, Russell 2000 (NYSE:IWM) had climbed 7.12, or 0.95%, to 754.8, while the Dow surged 125.55, or 1.09%, to 11,658.51.

The Securities Industry and Financial Markets Association said today that larger home loans financed by Freddie and Fannie would now be permitted to trade in the bond market causing both mortgage lenders to jump some 6% midday.

Stocks initially opened lower on worse-than-anticipated inflation data and an uptick in weekly jobless claims.

Ahead of the opening, the Consumer Price Inflation report showed no relief on the price front, clocking in at a hefty 0.8%. The number was substantially higher than the forecast of 0.4% and rose to a whopping 5.7% year-over-year — the highest since January 1991. Even the “core” inflation rate, which excludes food and energy prices, rose faster than projected. Although, excluding food and energy prices isn’t an accurate gauge at the current time, as both have surged in price this year and are the main areas to which consumers are now deploying the majority of their disposable income.

“With core inflation drifting back up to its upper range, and the shorter-term metrics still rising, this report is a little unsettling,” BMO Capital Markets economist Jennifer Lee wrote in a note today. “However, we've likely seen the end of the energy price spike and we do know that consumers have generally stopped spending. This could be the high-water mark for inflation. But we'll need a couple of months of data to confirm that.”

The weekly claims report wasn’t reassuring either, coming in at 450,000, which was down from 460,000 last week, but still above the forecast of 432,000. Looking at a four-week moving average, claims remain on an upward trajectory and at the highest level in six years. Rising inflation coupled with weak labor market stats only serve to solidify the stagflation picture with which the Federal Reserve is grappling.

Protherics (Nasdaq:PTIL), Heelys Inc. (Nasdaq:HLYS) and Cheviot Financial Corp. (Nasdaq:CHEV) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.   

Also included among the results: Deltek Inc. (Nasdaq:PROJ), Beazer Homes USA Inc. (Nasdaq:BZH), Noble International (Nasdaq:NOBL), Orexigen Therapeutics Inc. (Nasdaq:OREX), Pzena Investment Management Inc. (Nasdaq:PZN) and Ceco Environmental Corp. (Nasdaq:CECE). 

Here are the biggest percentage gainers among small caps:    

Shares of Heelys Inc. (Nasdaq:HLYS) got an 11% boost this morning after Skechers USA Inc. (NYSE:SKX) revealed late Wednesday that it had proposed to acquire Heelys for $142.8 million, or $5.25 a share.

In a letter to Heelys chairman Gary Martin, Skechers chief executive Robert Greenberg said his specialty footwear retailer has been “impressed by Heelys' strong brand and proprietary technology.”

Carrollton, Texas-based Heelys manufactures wheeled footwear.

Manhattan Beach, Calif.-based Skechers first brought up potentially buying Heelys on May 28 but says Heelys didn’t provide the requested diligence items.

By mid-morning, Heelys’ stock is at $5.41, up from Wednesday’s close of $4.87. Shares have ranged between $3.86 and $10.80 during the past 52 weeks.

For detailed price information and news stories on Heelys, click HLYS.

Small-cap stocks pushed lower on the opening, pressured by troubling economic data that raised concerns about both inflation and employment. That said, the market was hanging in relatively well given the sobering news, with the Russell 2000 (NYSE:IWM) climbing into the green near 10:00 a.m. ET. At 10:03 a.m. ET, Russell was up 0.16, or 0.02%, at 747.86.

Ahead of the opening, the Consumer Price Inflation report showed no relief on the price front, with the headline figure climbing to 0.8%, which was way above the forecast of 0.4%. What’s more, the year-over-year figure rose to 5.7%, the highest mark since January 1991. Even the so-called “core” inflation rate, which excludes food and energy prices, rose faster than the projection. With gasoline pump prices pushing north of $4 dollars a gallon this summer and food prices on the rise, excluding food and energy doesn’t make that much sense anyhow.

The weekly claims report also carried a sobering message this morning, as unemployment claims came in at 450,000, which was down from 460,000 last week, but still above the forecast of 432,000. When looking at a four-week moving average, claims remain on an upward trajectory and at the highest level in six years. The combination of rising inflation and weak labor markets is a very difficult position for Federal Reserve policy makers to navigate.

“Headline consumer inflation spurted again in July because of another sharp jump in energy costs and a large increase in food costs,” Steven Wood, chief economist with Insight Economics, said in an email. “However, lower oil prices should reduce energy costs next month. At the present time the Fed is caught between a rock and a hard place with renewed financial turmoil, a deteriorating economy, and climbing inflation. The Federal Reserve has been counting on energy prices to flatten out and weak economic activity over the next several quarters to cap both overall and core inflation. So far, no joy,” Wood said.

As the market prices in the bad news on the economic front, there are some bright spots to keep an eye on this morning, with automobile manufacturers, thrifts, homebuilders, department stores and airlines all on the upside. The S&P Retail Index took a hit Wednesday, but was on better footing this morning, even though retail leader Wal-Mart Stores Inc. (NYSE:WMT) was unable to sustain overnight gains following decent earnings. WMT shares were down 1% shortly after the . . .

Shares Heelys Inc. (Nasdaq: HLYS) fell to a 52-week low on news the designer and distributor of sports-inspired products swung to a fourth-quarter loss.

The Carrollton, Texas-based company announced after the close on Tuesday that net loss for the three months ended $5.5 million, or $0.20 per share, compared with net income of $11.5 million, or $0.44 per share, a year earlier. Three analysts polled by Thomson Financial were expecting Heelys to break even.

Net sales fell a breathtaking 86% to $9.8 million from $71.1 million in the fourth quarter of 2006.
“Our fourth-quarter results reflect the ongoing challenge to bring retail inventories more in line with consumer demand,” said CEO Ralph Parks in a statement.

“Due to a glut of inventory at retail, we believe that Heelys’s 4Q07 sales consisted primarily of some at-once orders as well as sales to new customers in the family footwear channel,” wrote David Meyer, an analyst with investment bank Brean Murray & Co., in a research note released today.

For the entire 2007 year, net income was $22.3 million, or $0.79 per share, compared with $29.2 million, or $1.16 per share, in 2006. Revenues fell 2.5% to $183.5 million from $188.2 million in 2006.

“We began 2007 with a lot of positive momentum in our business which translated into a very strong first half of the year,” said Parks. “Despite the slowdown we experienced over the past six months, we continue to be very confident about our long-term potential.”

“Despite the extremely cheap valuation, we remain highly cautious on the stock,” wrote Meyer. “Until management proves that it can successfully reinvigorate demand, we would advise investors to steer clear of this stock.”
The analyst has a “hold’ rating and projects 2008 revenues of $181.7 million for a net income of $0.85 per share.

At close, shares of Heelys Inc. (HLYS) shares had declined $0.27, or 6%, to $4.32. The previous 52-week low of $4.57 was established on March 4, while the 52-week high of $38.68 was touched on May 7.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices remain deep in negative territory on economic worries.

At 11:45 a.m. ET, the small-cap index was down 10.62 points, or 1.50%, to 695.10. The Dow Jones Industrial Average (INDU) had retreated 192.86 points, or 1.53%, to 12,389.32.

Stocks small and large are posting significant declines on bearish economic news and a historic loss at insurer American International Group, Inc. (NYSE: AIG).

The National Association of Purchasing Managers-Chicago reported after the opening that its index of regional business conditions fell to a lower-than-expected level of 44.5 in February from 51.5 in January. A reading below 50 indicates a contraction.

Meanwhile, the University of Michigan said after the opening that its index of consumer confidence fell to a reading of 70.8 in February. That’s up from the preliminary estimate of 69.6 but still represents the worst result in over 15 years.

Sturm, Ruger & Co. (NYSE: RGR), Triad Guaranty Inc. (Nasdaq: TGIC) and Barrett Business Services, Inc. (Nasdaq: BBSI) 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:

Heelys, Inc. (Nasdaq: HLYS) lowered its expectations for its third-quarter results after Wednesday’s close due to inventory build up as a result of a languishing retail environment, sending shares tumbling to a 52-week low.

For the third quarter ended Sept. 30, the designer of wheeled footwear said it now expects earnings per share to be in the range of $0.22 to $0.23, compared with previous guidance of $0.28 to $0.30 per share. Six analysts polled by Thomson Financial were forecasting earnings of $ 0.29 per share.

The small cap currently expects net sales to be approximately $49 million compared with its previous guidance range of $55 million to $58 million. The consensus of three analysts polled by Thomson Financial was for revenues of $ 56.21 million.

Specifically, Heelys attributed its new guidance to a greater-than-projected amount of inventory on hand due to higher-than-anticipated order cancellations as a result of a “difficult retail environment.” The increased inventory coupled with increased national advertising and additional markdowns to move the inventory cut into the designer’s top and bottom lines.

“Effects of greater-than-anticipated markdowns [used to try to move inventory] in the third quarter will spill into the fourth quarter,” Brean Murray & Carret analyst David Myers.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will likely open in positive territory.

The earnings season continues to march on, with attention this morning focused on Motorola Inc. (NYSE: MOT). The Schaumburg, Ill.-based telecommunications giant reported a third-quarter profit, its first in 2007, and announced a better-than-expected outlook for the fourth quarter.

In other news, orders for durable goods, which are intended to last at least three years, fell 1.7% in September, according to the U.S. Commerce Department. Economists were expecting a rise of 1.5% following a revised decline of 5.3% in August.

Silver lining came in the form of a 0.4% increase in orders for non-defense capital goods excluding aircraft, after a rise of 1.8% in August. That measure is a key barometer of business spending.

At 10 a.m. ET, the U.S. Commerce Department will release the numbers on new homes sales in September. Economists are expecting to see a decline.

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:

• Transcend Services Inc. (TRCR), up 17% on news of record third-quarter earnings.
• iRobot Corp. (IRBT), up 14% on news of a higher 2007 revenue outlook.
• ZOLL Medical Corp. (PLCE), up 12%.

Biggest percentage losers:

• Spartan Motors Inc. (SPAR), down 19% on news of a decline in third-quarter profit.
• Heelys Inc. (HLYS), down 11% on news of a lower third-quarter outlook.
• Triad Guaranty Inc. (TGIC) down 10% on news of a third-quarter loss.

Heelys, Inc. (Nasdaq: HLYS), Rick's Cabaret Int'l, Inc. (Nasdaq: RICK) and Mattson Technology, Inc. (Nasdaq: MTSN) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $750 million:

Heelys, Inc., (Nasdaq: HLYS) makers of the popular wheel-in-the-heel skate shoe, announced this morning that it is expanding its wheeled footwear line to include a “non-wheeled” shoe line called “the Gamer.”

Heelys’ newest shoe line incorporates a simulated game controller on the outsole of the shoe. The “Gamer” comes in two styles, Gamer Slip On and Gamer Lace, and will debut at $45 per pair.

“In considering the recent surge in video and online gaming paired with statistics showing 95% of heelers play video games, we knew the Gamer line was a natural,” Vice President of Heelys Design and Development Bob Byrne said in a press release.

Over the last 20 years, the popularity of playing video games has become mainstream and an integral part of youth life and culture. According to a study published by the National Institute on Media & Family, 93% of U.S. children under 18 played a video game in the last year and 79% of U.S. children play video games on a regular basis. Of U.S. households with children between the ages of two and 17, 74% own a video game console.

Heelys latest footwear line is slated to launch in November, just in time for the holiday season.

Shares of Heelys (HLYS) gained 11.81%, or $1.16, to $10.98 in pre-market trading. Shares of Heelys have been trading in the range of $7.65 to $40.09 for the past 52 weeks.

China Techfaith Wireless Comm. Tech. Ltd. (Nasdaq: CNTF), City Telecom (H.K.)Ltd (Nasdaq: CTEL) and Yucheng Technologies Ltd (Nasdaq: YTEC) are the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $750 million:

The bulls ran the show today as the Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) posted solid gains on news of strong September U.S. retail sales. The small-cap index added 6.19 points, or 0.74%, to 841.17. The Dow advanced 77.96 points, or 0.56%, to 14,093.08.

The bears were hibernating today as investors reacted to news that retail sales for September increased 0.6% to $380.2 billion, according to the U.S. Census Bureau before the opening. That surprised economists, who were expecting a rise of 0.2%.

Retail sales excluding motor vehicles and parts also outpaced analysts’ projections, rising 0.4% instead of the expected 0.3%.

The numbers suggest that the American consumer remains resilient in the face of the ongoing housing slump.

However, Kurt Karl, head of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, cautioned against an overly optimistic interpretation of the data.

“Total retail sales were strong, but excluding autos, they were up 0.4—compensating for last month’s decline of 0.4%,” Karl said in an e-mail.  “Compared to a year ago, retail sales after-inflation are close to 2%, which is weak, but not disastrous.”

Karl explained that the weakness stems from stagnant sales of furniture and building materials, which have been affected by the problems in the housing sector.

In other economic news, a measure of consumer sentiment for October unexpectedly fell, indicating that consumers are cautious about their future spending.

Slade's Ferry Bancorp (Nasdaq: SFBC), Metabolix, Inc. (Nasdaq: MBLX) and Salary.com, Inc. (Nasdaq: SLRY) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

Superconductor Technologies, Inc. (Nasdaq: SCON), QLT Inc. (Nasdaq: QLTI) and China Sunergy Co., Ltd. (Nasdaq: CSUN) are among the most actively traded companies in Tuesday pre-market trading among those with market capitalizations under $500 million:

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Syntax-Brillian Corp. (Nasdaq: BRLC) and Wild Oats Markets, Inc. (Nasdaq: OATS) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

VIVUS, Inc. (Nasdaq: VVUS), Hoku Scientific, Inc. (Nasdaq: HOKU) and ShengdaTech Inc. (Nasdaq: SDTH) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

April 4 (SmallCapInvestor.com) – Stocks gained ground in midday trading today as the price of oil declined further. In small cap action, shares of investment firm Epoch Holding Corporation (Nasdaq: EPHC) rose on news of an increase in assets, while sneaker maker Heelys Inc. (Nasdaq: HLYS) got an analyst upgrade due to strong sales.