Tag - MFLX

Small-cap stocks climbed back from a morning slide, and made a secondary run at positive territory before gravitating slightly lower at mid-session as a rally in energy and homebuilder stocks was offset by losses in financial and airline shares. Some of today’s small-cap gainers are Grand Canyon Education, Inc. (Nasdaq:AVAV), AeroVironment, Inc. (Nasdaq:LOPE) and Multi-Fineline Electronix (Nasdaq:MFLX).

Other Market Watch highlights today included:

• The chart picture retains a positive slant after Friday’s solid close above important resistance points.  
• In overseas action, European markets rose more than 1%, while Asia also gained about 1%.  
• Within the commodity theme, crude oil prices slipped into negative territory ahead of the U.S. open, giving back decent overnight gains amid geopolitical tensions.  
• Mining shares were firm overnight and remain a sector to watch in U.S. trading today.

Small Cap Gainers:

• Grand Canyon Education, Inc. and AeroVironment, Inc. established new 52-week highs shortly after the opening. (See Nasdaq:AVAV, Nasdaq:LOPE)  
• Multi-Fineline Electronix is up 23.5% to $15.17 after raising its Q1 sales outlook this morning. (See Nasdaq:MFLX)  
• Teradyne is up 10.3% to $5.15 after Barclays Capital this morning upgraded the company from "Equal Weight" to "Overweight." (See NYSE:TER)
• Eagle Bulk Shipping and DryShips Inc. are posting gains of 10.2% and 5.1%, respectively, in pre-market trading. (See Nasdaq:EGLE, Nasdaq:DRYS)

Small Cap Losers:

• CONMED Corp. and Digi International established new 52-week lows in early trading. (See Nasdaq:CNMD,Nasdaq:DGII)  
• GSI Commerce, Inc. is down 14.6% after a downgrade this morning by Stifel Nicolaus. (See Nasdaq:GSIC)  
• Helen of Troy Limited is down nearly 11% to $15.80 after a downgrade by JPMorgan. (See Nasdaq:HELE)  
• Varian Semiconductor Equipment is down 5.4% to $17.60 in pre-market trading after issuing revised rev and earnings estimates for Q1. (See Nasdaq:VSEA)

Hiland Partners LP (Nasdaq:HLND), Multi-Fineline Electronix Inc. (Nasdaq:MFLX) and Atlas Pipeline Holdings L P (Nasdaq:AHD) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: OSG America L P (Nasdaq:OSP), VisionChina Media Inc. (Nasdaq:VISN), Affymax Inc. (Nasdaq:AFFY), Solutia Inc. (Nasdaq:SOA), Cambrex Corp. (Nasdaq:CBM) and Approach Resources Inc. (Nasdaq:AREX).

Small-cap stocks edged lower this morning, pulled down by ideas Friday’s gains were overdone, by ongoing worries about the credit crisis and the economic recession and by a batch of soft earnings announcements in the small-cap sphere this morning. Losses were limited by optimism about fiscal stimulus plans when President-elect Obama takes office later this month. Some of today’s small-cap gainers are Grand Canyon Education, Inc. (Nasdaq:AVAV), AeroVironment, Inc. (Nasdaq:LOPE) and Multi-Fineline Electronix (Nasdaq:MFLX).

Other Market Watch highlights today included:

• The chart picture retains a positive slant after Friday’s solid close above important resistance points.  
• In overseas action, European markets rose more than 1%, while Asia also gained about 1%.  
• Within the commodity theme, crude oil prices slipped into negative territory ahead of the U.S. open, giving back decent overnight gains amid geopolitical tensions.  
• Mining shares were firm overnight and remain a sector to watch in U.S. trading today.

Small Cap Gainers:

• Grand Canyon Education, Inc. and AeroVironment, Inc. established new 52-week highs shortly after the opening. (See Nasdaq:AVAV, Nasdaq:LOPE)  
• Multi-Fineline Electronix is up 23.5% to $15.17 after raising its Q1 sales outlook this morning. (See Nasdaq:MFLX)  
• Teradyne is up 10.3% to $5.15 after Barclays Capital this morning upgraded the company from "Equal Weight" to "Overweight." (See NYSE:TER)
• Eagle Bulk Shipping and DryShips Inc. are posting gains of 10.2% and 5.1%, respectively, in pre-market trading. (See Nasdaq:EGLE, Nasdaq:DRYS)

Small Cap Losers:

• CONMED Corp. and Digi International established new 52-week lows in early trading. (See Nasdaq:CNMD,Nasdaq:DGII)  
• GSI Commerce, Inc. is down 14.6% after a downgrade this morning by Stifel Nicolaus. (See Nasdaq:GSIC)  
• Helen of Troy Limited is down nearly 11% to $15.80 after a downgrade by JPMorgan. (See Nasdaq:HELE)  
• Varian Semiconductor Equipment is down 5.4% to $17.60 in pre-market trading after issuing revised rev and earnings estimates for Q1. (See Nasdaq:VSEA)

Small-cap stocks pushed higher Wednesday, bolstered by a rally in tech stocks and another soothing pullback in crude oil prices. The Russell 2000 (NYSE:IWM) gained 4.85, or 0.67%, to 725.90, the highest daily close since June 19.

Importantly, small caps finally broke free of the recent trading range. Sustained action above 726 is still needed to validate the upside breakout. Today’s rally also confirmed a breach of trendline resistance from both the June peak and the previous July high, which adds to the chart-related glow.

Crude oil prices slipped to 3-month lows today when the weekly inventory report showed a larger-than-expected build in crude oil stocks. The report reflected an increase in stocks of 1.7 million barrels, well beyond the forecast for a rise of 300,000. Still, gasoline stocks had a surprisingly large drawdown of inventory, which took some of the bearish sting out of the crude data. Overall, the weak tone in crude oil continues to provide a cushion for equity markets, providing some hope that consumers will spend less at the gas pump and more on other endeavors...

Multi-Fineline Electronix Inc (Nasdaq:MFLX), Advisory Board Co (Nasdaq:ABCO) and Pacer International Inc (Nasdaq:PACR) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: National Financial Partners Corp (Nasdaq:NFP), ACCO Brands Corp (Nasdaq:ABD), 21st Century Holding Co (Nasdaq:TCHC), Smith Micro Software Inc (Nasdaq:SMSI), Cambrex Corp (Nasdaq:CBM) and Kulicke & Soffa (Nasdaq:KLIC).

Here are the biggest percentage losers among small caps:

Small-cap stocks edged down in midday trading, pressured by Freddie Mac’s larger-than-expected second-quarter loss and by profit-taking from traders who caught Tuesday’s big rally.

At 12:36 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.90, or 0.12% at 720.14.

Freddie Mac (NYSE:FRE) has dropped 11% in midday trading on sloppy quarterly earnings and news that the firm will reduce its dividend. The mortgage lender reported a $821 million quarterly loss, setting a gloomy mood for investors. Fannie Mae (NYSE:FNM), another government-chartered lender that often closely tracks Freddie's price moves, was also lower in the midday, off some 7%.

“Reuters reports today that the U.S. Treasury has hired Morgan Stanley in an advisory role to help it analyze and better understand its new authorities to backstop housing finance giants Fannie Mae and Freddie Mac,” Andy Busch, global foreign exchange strategist for BMO Capital Markets said in an email. “Today, Morgan Stanley told thousands of clients this week that they won't be allowed to withdraw money on their home-equity credit lines, said a person familiar with the situation according to Bloomberg. Hmm, the grassy-knoll-conspiracy-theorist inside me thinks that the two are related.”

Crude oil futures had slipped $1.59 to $117.58 a barrel in recent trading. Inventory data this morning showed a larger-than-expected rise in U.S. oil stockpiles. In other commodity news, the U.S. dollar continued its rally in midday trading and is up against both the yen and the euro in recent trading.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 6% in the midday. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 2.25%.

Small-cap stocks pushed lower, pressured by news of soft earnings and by profit-taking from traders who caught Tuesday’s big rally. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 5.15, or 0.71% at 715.89.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 5% shortly after the open. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 1.5%.

However, the good news on big-cap techs was countered by big losses from a broad spectrum of companies. For example, Whole Foods Market Inc. (Nasdaq:WFMI), missed the earnings projection and tumbled 18% on the open. Also, priceline.com (Nasdaq:PCLN) was down 13% as the company had a cautious forward-looking statement. Freddie Mac (NYSE:FRE) dropped 13% on sloppy quarterly earnings and news that the firm will reduce its dividend.

Crude oil prices were on mildly firm footing this morning awaiting the weekly inventory report, which comes out near 10:35 a.m. ET. Energy prices have tanked in recent days, sinking over 19% from the summer peak to the recent low. The market is a little oversold on short-term momentum readings and vulnerable to a bounce. In addition, an explosion in a pipeline in Turkey and concerns about potential supply disruptions out of Africa were supportive elements in play. As for the inventory report, traders are looking for a build in crude oil stocks of about 300,000 barrels...

China Sky One Medical Inc (Nasdaq:CSY), Quest Resource Corp (Nasdaq:QRCP) and Fuel Systems Solutions Inc (Nasdaq:FSYS) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Multi-Fineline Electronix Inc (Nasdaq:MFLX), Met-Pro Corp (Nasdaq:MPR), Hanger Orthopedic Group Inc (Nasdaq:HGR), Pioneer Southwest Energy Partners LP (Nasdaq:PSE), Atlas Acquisition Holdings Corp (Nasdaq:AXG) and HireRight Inc (Nasdaq:HIRE).

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

When Motorola (NYSE:MOT) caught the cold shoulder of cell phone buyers as the faddishness of its RAZR line faded, Multi-Fineline Electronix Co. (Nasdaq:MFLX) felt the chill.

At one point, the Anaheim, Calif., maker of flexible printed circuit technology relied heavily on Motorola, which had accounted for nearly 90% of Multi-Fineline Electronix’s sales. It was Multi-Fineline’s flexible wizardry that enabled Moto to deliver the ultra-sleek RAZRs that consumers craved.

The RAZR nicks and cuts are healing at Multi-Fineline, commonly known as M-Flex, amid a management restructuring and other changes. It was a rather quick turnaround: in the January through March quarter of 2007, the company warned of a sales shortfall.

Having learned from that painful lesson, Multi-Fineline Electronix is broadening its customer base to makers of cell phones, hand-held devices and smart phones, while eyeing potential growth in medical devices and other specialties. Despite the demand rollercoaster created by the retrenching U.S. economy, the company has three quarters of positive results under its belt.

Analysts who follow M-Flex apparently didn’t find a lot to fault when results for the fiscal second quarter came out May 6. According to a Thomson Reuters survey, two of the five analysts polled have Multi-Fineline as a “buy,” with the other three calling it a “hold.”

Shares of M-Flex have held steady around $20 in recent weeks, which is less than a third of the highs seen in March 2006, when the stock topped $67. Multi-Fineline shares hit a 52-week high of $24.14 on March 12, and a low of $9.70 on Aug. 3. The Thomson median price target is $23. Shares closed Monday at $20.19.

Founded in 1984, Multi-Fineline has become a leading provider of flexible-circuit technology. M-Flex also provides end-to-end services to electronics companies, from design to production and assembly. Most manufacturing takes place in China, where it has some 800,000 square feet around Suzhou. Construction is beginning this month on a new plant that will expand capacity in about a year by $30 million in monthly sales on top of the $64 million in current monthly sales capacity.

Following the May 6 release of results for the three months ended March 31, M-Flex shares shot up 12%, and for good reason. The company said in the fiscal . . .

After rising during morning trading, the Russell 2000 (NYSE:IWM) hit resistance at 733.59 at 10:45 a.m. ET, and has continued to slide in Wednesday’s trading action. At 1:59 p.m. ET, the Russell was down 6.12, or 0.84%, at 723.67.

Federal Reserve Bank of Kansas City President Thomas Hoenig gave the bears support after he said late Tuesday that inflationary pressures “now stand at unacceptably high levels.” Hoenig is not a current voting member of the policy-making Federal Open Market Committee. U.S. consumers are feeling the pinch on their wallet, especially with oil prices surging to record highs. In recent trading, June crude oil contracts were up $1.51 to $123.35 a barrel.

A rising U.S. dollar combined with a positive productivity report kept investors bullish during early trading. In afternoon trading, the greenback is up to $1.5387 versus the euro. The U.S. dollar closed at $1.5524 against the Euro on Tuesday.

Also encouraging the bulls was the Labor Department’s Wednesday morning announcement that non-farm business productivity increased at an annual rate of 2.2% during the first quarter. Economists anticipated a 1.5% increase. Unit labor costs rose slower than expected at an annual rate of 2.2%, compared with . . .

Camco Financial Corp (Nasdaq:CAFI), Multi-Fineline Electronix Inc (Nasdaq:MFLX) and Ceragon Networks Ltd (Nasdaq:CRNT) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $750 million.

Mediacom Communications Corp (Nasdaq:MCCC), SWS Group (Nasdaq:SWS) and Perficient Inc (NYSE:PRFT) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

Small-cap stocks pushed higher in early trading action, lifted by a surge in the U.S. dollar, and by yet another economic report that surprised on the upside. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.52, or 0.21%, at 731.31.

The greenback was on a roll this morning, gaining about 0.9% versus the euro, which would put the buck on a pace to close at the highest level since late March. Dollar strength also was noted against the yen, with dollar/yen rates up nearly 0.7% into the U.S. stock market opening.

Equities markets were lower in after-hours trading, but started to move toward the green after the monthly productivity report beat expectations. The headline figure for productivity came in at a gain of 2.2%, which was above the forecast for a rise of 1.6%. Typically, the productivity report has only a modest impact on stocks, but it did appear to move the S&P 500 about four handles. Perhaps of greater significance is that the productivity report was yet another economic release that topped the forecast, feeding good news to a market that might need it with small caps closing at 13-week highs Tuesday. There’s an old saying in the market that “you have to feed a bull, not necessarily a bear.”

Despite the jump in the U.S. dollar, crude oil prices were still hovering in rare air after setting record intraday and closing price values Tuesday. Amid supply concerns out of Africa, geopolitical strife in the Middle East and analyst forecasts calling for sharp gains in crude oil in coming months, “black gold” remains strong and . . .

The Russell 2000 (IWM) fell as comments from Fed officials stating that inflation remains a concern erased early gains. The small-cap index fell 9.09 points, or 1.30%, to 692.49, its third consecutive decline. The Dow Jones Industrial Average (INDU) lost 65.03 points, or 0.53%, to 12,200.10.

On a year-to-date basis, the Russell 2000 has decreased 9.60%, while the Dow has let go 8.03% and the S&P 500 is missing 9.66%.

“It will be necessary to continue to monitor inflation developments carefully,” Philadelphia Federal Reserve Bank President Charles Plosser said in a speech to the Birmingham Rotary Club this afternoon. “With inflation creeping up, we have to be particularly alert for rising inflation expectations.”

Similarly, Richmond Federal Reserve Bank President Jeffrey Lacker told an audience at Marshall University’s Lewis College of Business that the risks of a recession have recently increased while inflation has not moderated as some expected, according to news reports.

Higher inflation makes it difficult for the U.S. Federal Reserve to boost the economy with cuts to the target federal funds rate for fear that lower interest rates could drive inflation even higher.

Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), manufacturer of flexible printed circuit boards and related component assemblies for electronics industry, reported robust fiscal first-quarter results after Tuesday’s close that blew away expectations on account of strong gross margins and increased sales to Apple, Inc. (Nasdaq: AAPL).

For the three months ended Dec. 31, 2007, the Anaheim, Calif.-based company reported revenues increased nearly 49% to $184.1 million from $123.9 million for the first quarter of fiscal 2007. The Thomson Financial mean estimate for revenue was $175.3 million. The company attributed the upshot in revenue primarily to increased sales to two of its key customers.

The small cap recorded net income of $13.6 million, or $0.54 per diluted share, compared with $3.7 million, or $0.14 per diluted share, for the same period in fiscal 2007.The Thomson Financial mean estimate for earnings was $0.14 per share.

Multi-Fineline said the year-over-year increase in profitability was propelled by improved gross margin and added leveraging of operating expenses on the higher net sales. Gross margin increased to 16.7% for the quarter, compared with 12.1% in the same quarter last year, primarily due to program mix, leveraging of expenses on the higher net sales and yield improvements, which were partially offset by pricing reductions in early 2007.

The small cap said that sales to Apple Inc. rose to more than 10% of net sales in the first quarter, rendering Apple one of Multi-Fineline’s four largest customers. The company also noted that it made progress on diversifying its customer base, as net sales during the first quarter were distributed among four customers.

The Russell 2000 (NYSE: IWM) is rising following news that U.S. productivity grew more than expected in the fourth quarter.

At 10:20 a.m. ET, the small-cap index had climbed 3.35 points, or 0.48%, to 704.93. The Dow Jones Industrial Average (INDU) had advanced 54.14 points, or 0.44%, to 12,319.27.

Worker productivity grew more than expected during the fourth quarter, the U.S. Labor Department reported before the start of trading. Productivity increased at an annual rate of 1.8% during the final three months of 2007, above the 0.5% rate expected by economists but below the downwardly revised 6% pace during the third quarter.

Productivity for the entire 2007 rose 1.6%, compared with 1% in 2006.

Increases in productivity allow for an increase in production without a corresponding increase in prices or a jump in the company’s costs.

Unit labor costs, which are a key measure of inflation, rose 1.6% after falling 1.9% in the third quarter. Economists were expecting fourth-quarter unit labor costs to rise 3.8%. Increases in labor costs must be matched by productivity increases in order to keep inflation in check.

The unexpectedly bullish productivity news lifted all the major U.S. indices out of the gate, but the Russell 2000 gave investors a scare when it briefly dipped into the red shortly before 10 a.m. ET.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices fell today as credit worries resurfaced following news of losses at Citigroup. The small-cap index fell 7.34 points, or 0.92%, to 790.44. The Dow Jones Industrial Average (INDU) lost 51.70 points, or 0.38%, to 13,543.40.

On a year-to-date basis, the Russell 2000 has increased 0.38%, while the Dow has added 8.57% and the S&P 500 has gained 6.04%.

The bears dominated trading today following news that Citigroup Inc. (NYSE: C), the largest U.S. bank, expects to incur additional losses of up to $11 billion after already suffering $6.5 billion in credit-related losses in the third quarter.

Analysts forecast that the credit problems will negatively affect Citibank in the fourth-quarter and lead to a net loss.

That was enough to scare investors, who had been hoping that this summer’s credit problems were in the past. Wall Street will now keep a watchful eye on other banks and brokerages for signs of additional losses stemming from the recession in the U.S. housing sector.

Many financial institutions bought securities backed by subprime mortgages that have become worthless in the wake of falling home prices and a wave of foreclosures by cash-strapped homeowners. No one knows for certain the extent to which the subprime debacle will damage the financial sector.

Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), BioSphere Medical, Inc. (Nasdaq: BSMD) and 1st Independence Financial Group, Inc. (Nasdaq: FIFG) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in negative territory as credit fears return to Wall Street. At 1:46 p.m. ET, the small-cap index had shed 9.67 points, or 1.21%, to 788.11. The Dow Jones Industrial Average (INDU) was down 108.44 points, or 0.80%, to 13,486.66.

Financial stocks are leading the way down after Citigroup Inc. (NYSE: C) announced before the start of trading that it expects additional losses of up to $11 billion after already suffering $6.5 billion in credit-related losses in the third quarter.

Analysts are estimating that the credit problems will negatively affect Citibank in the fourth-quarter and lead to a net loss.

The news brought out the bears and spooked investors, who were hoping that this summer’s credit problems were in the past, but recent events have revived the issue. Investors will also want to see if other banks and brokerages report additional losses.

Many financial institutions bought securities backed by subprime mortgages that have become worthless in the wake of the recession in the U.S. housing market and the wave of foreclosures by cash-strapped homeowners.

Small-cap stocks are also sagging this afternoon, with Sanders Morris Harris Group Inc. (Nasdaq: SMHG) down 2% while Stifel Financial Corp. (Nasdaq: SF) has dropped 6%.

Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), manufacturer of flexible printed circuit boards and related component assemblies for the electronics industry, reported robust fiscal fourth-quarter results and disclosed fiscal full-year results.

For the three months ended Sept. 30, net income increased 36% to $3 million, or $0.12 per diluted share, up from $2.2 million, or $0.09 per share, during the fourth quarter of 2006. Six analysts had forecasted a net loss of $0.03 per share for the quarter.

Net sales increased 51% to $166.7 million from $110.3 million in the same quarter last year. Four analysts polled by Thomson Financial were on average forecasting sales of $118.52 million. Net sales were primarily due to increases in net sales from the company's four largest customers.

Net sales for the fiscal year ended Sept. 30, 2007, increased to $508.1 million from $504.2 million for fiscal 2006. Six analysts polled by Thomson Financial were on average projecting sales of $460.68 million for the fiscal year.

Net income decreased to $3 million, or $0.12 per diluted share, below the $0.16 per share six analysts polled by Thomson Financial were on average expecting. For fiscal 2006, the company booked net income of $40.4 million, or $1.59 per diluted share.

Multi-Fineline said that net income was impacted by reduced gross margins, a charge in the third quarter of $7.8 million before tax and $4.8 million net of tax, related to expensing deferred transaction costs associated with a terminated offer to acquire MFS Technology Ltd.

The company’s CEO Phil Harding said the company's growth slowed during the year because of a significant decrease in sales to an electronics manufacturer that has historically been M-Flex's largest customer. According to Harding, sales to its largest customer declined 33% to represent 57% of total net sales in fiscal 2007, compared with 85% in fiscal 2006.

Shares of Multi-Fineline (MFLX) gained 31.95% or $4.71 to $19.45 at 12:42 p.m. ET. Shares of Multi-Fineline have been trading in the range of $9.70 to $23.19 for the past 52 weeks.

The Russell 2000 (NYSE: IWM) is down more than the other major U.S. indices as credit fears spread on Wall Street.

At 10:38 a.m. ET, the small-cap index had shed 6.28 points, or 0.79%, to 791.50. The Dow Jones Industrial Average (INDU) had lost 52.11 points, or 0.38%, to 13,542.99.

Citigroup Inc. (NYSE: C) announced this morning that it expects additional losses up to $11 billion after already suffering $6.5 billion in credit-related losses in the third quarter. The New York-based bank, the largest in the United States, also said that CEO Charles Prince has left. He is to be replaced by Robert Rubin, a former Treasury secretary and economic advisor to President Clinton.

Analysts are estimating that the credit problems will negatively affect Citi’s fourth-quarter results and are expecting to see a loss. The bank said that its write-offs may increase if markets worsen. It has $55 billion of securities backed by subprime mortgages in its pocket.

Investors had been hoping that this summer’s credit problems were in the past, but recent events put the issue on center stage.

In economic news, growth in the U.S. services industry slowed in October, according to the Institute for Supply Management. Its index of non- manufacturing businesses fell to 54 from 54.8 in September, the group said after the start of trading. The decline was expected by economists. A reading over 50 indicates growth.

Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Multi-Fineline Electronix Inc. (MFLX), up 27% on news of a higher fourth-quarter profit.
• BioSphere Medical, Inc. (BSMD), up 20%. A company representative could not be reached for comment.
• Ballard Power Systems Inc. (BLDP), up 15% on news it is reviewing strategic options.

Biggest percentage losers:

• Gevity HR Inc. (GVHR), down 28% on news of a lower third-quarter profit and a disappointing fourth-quarter guidance.
• Orbotech Ltd. (ORBK), down 9% on news of a decline in third-quarter profit.
• T-3 Energy Services Inc. (TTES) down 9%. A company representative could not be reached for comment.

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open in negative territory on news of more credit fears.

Citigroup Inc. (NYSE: C) announced this morning that it expects additional losses of $8 billion to $11 billion after already suffering $6.5 billion in credit-related losses in the third quarter. The New York-based bank, the largest in the United States, also said that CEO Charles Prince has left. He is to be replaced by Robert Rubin, a former Treasury secretary and economic advisor to President Clinton.

Analysts are estimating that the credit problems will negatively affect Citi’s fourth-quarter results and are expecting to see a loss.

There will be little in the way of major economic news today, but a monthly national non-manufacturing index will be released at 10 a.m. ET, by the Institute for Supply Management. Economists are expecting to see a slowdown in growth.

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:

• Multi-Fineline Electronix Inc. (MFLX), up 32% on news of a higher fourth-quarter profit.
• iRobot Corp. (IRBT), up 14% on news that a court has partially granted its
request for a preliminary injunction in a lawsuit against former employees.
• Ballard Power Systems Inc. (BLDP), up 12% on news it is reviewing strategic options.

Biggest percentage losers:

• Novacea Inc. (NOVC), down 60% on news its prostate cancer drug did not meet expectations.
• Orbotech Ltd. (ORBK), down 13% on news of a decline in third-quarter profit decline.
• Presstek Inc. (PRST) down 11%.

Shares of Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) are continuing to free fall today after Robert W. Baird downgraded the provider of flexible printed circuit and component assembly solutions to the electronics industry to a rating of “neutral” from “out perform.” After the close Thursday Multi-Fineline reported that it swung to a loss below expectations for its fiscal third quarter. 

“While we are encouraged by the diversification of M-Flex's customer base with the increasing revenues to Sony-Ericsson and a third customer, we are downgrading MFLX rating to Neutral based on anticipated margin pressure,” Robert W. Baird analyst Reik Read wrote in a research note.

Read cited product transitions, possible price concessions sought by Motorola and new programs that carry higher commission costs as factors that could squeeze margins.

On account of possibly softening margins, Read says he is reducing his full year EPS estimate to $0.15 from $0.35, and his fiscal year 2008 EPS estimate to $0.42 from $0.80. The consensus of three analysts polled by Thomson Financial was $0.35 for the current fiscal year ending in September 2007, while the consensus of five analysts polled by Thomson Financial is $0.83 for fiscal year 2008.

For the three months ended June 30, the Anaheim, Calif.-based company recorded a net loss of $6.7 million, or $0.27 per diluted share, while three analysts polled by Thomson Financial had anticipated a net loss of $0.02 per share. This compares with net income of $8.3 million, or $0.32 per share earned in the fiscal third quarter last year.

Cambridge, Mass.-based ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) has entered into an agreement with industry giant Merck & Co. (NYSE: MRK) to develop and commercialize a new cancer treatment, the company said this morning. Merck will pay the drug developer $75 million upfront, up to $452 million in milestone payments and up to $200 million in sales bonuses. The stock is up $0.20, or 3%, to $6.25.

Shares of Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) are down following news after Wednesday’s close that the electronic components maker saw its fiscal third quarter net sales decline unexpectedly. The stock is down $0.38, or 2%, to $16.77.