Tag - JXSB

Jacksonville Bancorp Inc (Nasdaq:JXSB), Value Line Inc (Nasdaq:VALU), First Pactrust Bancorp Inc (Nasdaq:FPTB) and McClatchy Co (Nasdaq:MNI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Allied Defense Group Inc (Nasdaq:ADG), First Franklin Corp (Nasdaq:FFHS), Pathfinder Bancorp Inc (Nasdaq:PBHC), Southwest Georgia Financial Corp (Nasdaq:SGB) and Medicines Co (Nasdaq:MDCO).

ZST Digital Networks Inc (Nasdaq:ZSTN), JacksonVille Bancorp Inc (Nasdaq:JXSB), Servotronics Inc (Nasdaq:SVT) and Oxford Industries Inc (Nasdaq:OXM) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Stocks reversed early gains today as the second quarter comes to a close with more of a whimper than a bang. Jobless rates remain high in major metropolitan areas with the Labor Department reporting today that rates rose for this past May against the year ago same period in all 372 metropolitan areas that it tracks. Areas hit hardest include those with major manufacturing centers that feed into housing construction. While overall U.S. unemployment climbed to 9.4 percent in May, hardest hit is El Centro, California with a 26.8 percent rate. |

Consumer Confidence Report numbers, as reported by the Conference Board, further the fear on Wall Street as investors had expected the numbers to hold steady from April and May gains, however the index for June stands at just 49.3, down from 54.8 in May.

All of the major U.S. markets were down today with the Dow closing at 8,448, the Nasdaq trimmed by half a percent to 1,835, and the S&P 500 giving up 8 points to close at 919.

The Russell 2000, a composite index of the 2,000 largest small-cap stocks, closed down today at 501, for a loss of 1 percent.

Bright spots among small-cap stocks were lead by Annapolis Bancorp (Nasdaq:ANNB) up 38% to close the day at $3.80; Novavax (Nasdaq:NVAX) up 31% on news that Spanish pharmaceutical company Rovi will use Novavax's "Virus Like Particle" technology in the development of a vaccine for H1N1, also known as "swine flu"; LightPath Technologies (Nasdaq:LPTH) up 27%; Plumas Bancorp (Nasdaq:PLBC) up 25%; and Jacksonville Bancorp (Nasdaq:JXSB) up 23%.

While small-cap financial showed leadership today, large cap financial stocks like Bank of America (NYSE:BAC), Citigroup (NYSE:C), HSBC Holdings (NYSE:HBC), and Wells Fargo (NYSE:WFC) were down or up less than one-tenth of one percent.

The leader in small-cap price decliners was Cubic Energy (AMEX:QBC), down 30% on ongoing debt concerns with Wells Fargo Energy Capital. Cubic Energy was followed by Raser Technologies (NYSE:RZ), down 27%; Sunrise Senior Living (NYSE:SRZ), down 23%; and Northeast Bancorp (Nasdaq:NBN), down 21%.

*****If today had a lot going on then yesterday was downright boring. On Monday, around 10:30 AM, the S&P 500 rose above 924. By 12:30 PM, it rose to 927.99. Ignore the first hour of trading (when the S&P 500 made a comparatively wild 8-point swing), and the S&P 500 was confined to a 4-point range for 5 ½ hours.

Days like this make watching paint dry sound exciting. And as I'm typing this note, it's down about 1.3%.

And TradeMaster technical analyst Jason Cimpl tells me it could be like this all week as we head into a holiday weekend. If you want to catch a replay of his video that gives insights into this week's market direction just visit here. (or go to trademasterstocks.com/videoreport)

Great. But that's summer trading for you…

*****The Case-Shiller home price index, which measures home prices in 20 U.S. cities, showed that home prices fell 18.1% in April. And that was better than expected!

Of course, the index was only half a percentage point better, which most likely falls within the margin for error. Still, the results prompted the senior economist at Wachovia, Mark Vitner, to say "It is looking a bit better…[t]he largest declines are probably past."

And David Blitzer, chairman of the S&P index committee said, "While one month's data cannot determine if a turnaround has begun, it seems that some stabilization may be appearing in some of the regions…"

*****At first glance, these comments might seem a little, um, out of touch with reality. After all, how can anyone think that an 18% decline in home values is good?

The reason is that its foreclosure sales that are driving the Case-Shiller Index lower. Close to 5 million seized homes may be sold this year. To add some color, according to Bloomberg, 73% of all home and condo sales in Las Vegas in May were foreclosure re-sales.

73% -- that is an amazing number. And because these homes get sold at fire-sale prices, the affect on the overall housing market is dramatic.

*****That foreclosed homes are finding new owners is what's prompting economists to say prices may be stabilizing. And once prices stabilize, then the erosion of household wealth stops. And, then, maybe consumer spending picks up.

At least that's how the story goes...

There are some problems with this rosy scenario. Falling home and stock values claimed around $13.9 trillion in household wealth since 1997. That means there's a long way to go just to get back to break even. But with unemployment expected to persist above 7% for the next couple of years, where is the buying pressure for homes and the earnings power for public companies going to come from?

It's easy to imagine investors buying foreclosed property at discounted prices. But that doesn't mean the same level of demand exists for regular home sales. In fact, I'd go so far as to say there's no way demand for homes will be sustained beyond foreclosure sales.

*****Banks are taking losses as they clear bad mortgage loans from their books. That means banks will have room to make more loans - but will people want them?

Again, I suspect not.

That means banks will struggle to make up the losses and keep earnings growing. And with earnings season right around the corner (Alcoa (NYSE:AA) kicks earnings season off on July 7) investors should be on their toes.

P.S. A reader sent in an email yesterday asking about China and whether it's a good time to get back in. After last year's sell-off Chinese stocks are moving back up. If you missed the first China bull, this is your second chance. I've just finished a stock research report on 3 China-based stocks that every investor should have in his or her portfolio. Find out more here.

The Russell 2000 (NYSE: IWM) slipped into the red as gains that started off the day on news of possible asset sales by big banks were overshadowed by weak new home sales data. After trading above 782, the small-cap index dropped 1.80 points, or 0.23%, to 771.71. The Dow Jones Industrial Average (INDU) gained 5.69 points, or 0.04%, to 13,365.54.

On a year-to-date basis, the Russell 2000 is off 1.995%, while the Dow is up 7.15% and the S&P 500 has risen 4.37%.

The Commerce Department reported shortly after the start of trading this morning that sales of new U.S. homes plummeted by a more-than-expected 9% to a seasonally adjusted annual rate of 647,000, a 12-year low. Economists were expecting that new home sales would fall to 715,000 from 728,000 in October.

On account of the bleak housing data, treasuries climbed to their highest in two weeks, nearing the best year since 2002. In contrast, the dollar slipped versus the euro for the sixth day, the longest descent since October.

Among the major positive news of the day, Citigroup Inc. (NYSE: C) and HSBC Holdings are among U.S. and European banks that are considering major asset sales, The Wall Street Journal reported this morning. Citigroup could sell an 80%-held student loan, its North American auto-lending unit, its 24% stake in Brazil credit-card operation Redecard and the bank's Japanese consumer finance business. HSBC might liquidate its auto-finance business.

Adding to the sanguine news, the Chicago arm of the National Association of Purchasing Managers reported that business activity in the Chicago area expanded in December, topping expectations.

The index jumped to 56.6, compared with 52.9 in November. Analysts were predicting an index of 52. Readings above 50 signify economic expansion.

First Mutual Bancshares (Nasdaq: FMSB) announced it is being acquired by Washington Federal Inc. for $189.8 million in a cash and stock deal.

Medical software maker Simulations Plus, Inc. (AMEX: SLP) reported net earnings of $0.78 million, or $0.09 per share, for the three months ended May 31, up from $0.38 million, or $0.05 per share, in the year-ago period.

These are the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $500 million: