Tag - NHWK

Emcore Corp (Nasdaq:EMKR), Akeena Solar Inc (Nasdaq:AKNS) and China Direct Inc (Nasdaq:CDS) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $750 million.

Synchronoss Technologies Inc (Nasdaq:SNCR), Nighthawk Radiology Holdings Inc (Nasdaq:NHWK) and China Technology Development Group Corp (Nasdaq:CTDC) are also among the most actively traded companies.

Here are the most actively traded companies among small caps:

Provident Community Bancshares Inc. (Nasdaq:PCBS), Healthcare Services Group, Inc. (Nasdaq:HCSG) and Silver State Bancorp (Nasdaq:SSBX) were among the new 52-week lows established during Wednesday's trading among companies with market capitalizations or values under $750 million.

Cheniere Energy, Inc. (AMEX:LNG), Porter Bancorp, Inc. (Nasdaq:PBIB) and NightHawk Radiology Holdings, Inc. (Nasdaq:NHWK) were also among the 52-week small-cap lows.

Here are today's 52-week small-cap lows:

The Russell 2000 (NYSE: IWM) and the other major U.S. indices have taken a hit following news that U.S. Federal Reserve chairman Ben Bernanke thinks the economy is slowing. At 2:47 p.m. ET, the small-cap index had dropped 18.09 points, or 2.51%, to 703.84. The Dow Jones Industrial Average (INDU) had declined 184.20 points, or 1.47%, to 12,368.04.

“The outlook for the economy has worsened in recent months, and the downside risks to growth have increased,” Fed chairman Ben Bernanke told the Senate Banking Committee this morning.

“The softer labor market, together with factors including higher energy prices, lower equity prices, and declining home values, seems likely to weigh on consumer spending in the near term,” he said.

Consumption is about 70% of U.S. gross domestic product.

However, Bernanke pointed out he is not predicting a recession and expects economic growth to pick up later in the year, thanks to rising exports and the recently approved stimulus package.

Investors took the Fed chief’s words as a bearish sign. The Russell 2000 index, which was already languishing in the red, started sliding down soon after Bernanke began his remarks at 10 a.m. ET.

Worries about slow economic growth are apparently outweighing news that the Fed stands ready to make future cuts to its target interest rates.

The federal funds rate, the rate at which commercial banks make overnight loans to each other, currently stands at 3% after being lowered a cumulative 1.25% in January.

NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK) reported fourth-quarter earnings in line with the Street after the close Wednesday, but guided below the consensus on Wall Street sending shares barreling downward this morning.

The provider of radiology services to radiology groups and hospitals in the United States guided for fiscal 2008 revenue to be in the range of $195 million to $205 million, and adjusted earnings per diluted share in the range of $1.10 to $1.20 for the year. The guidance was below the consensus of five analysts surveyed by Thomson Financial of earnings of $1.25 per share on revenues of $211.89 million.

“Surprisingly, management lowered its 2008 guidance,” Piper Jaffray analyst Sean Wieland wrote in a research note today. “We believe the new guidance reflects some of the fundamental trends that challenge the teleradiology business: high penetration rates, competition, and reimbursement.”

On account of the new guidance, Wieland lowered his revenue and earnings estimates for the year as well as his target price. The analyst is now forecasting revenue of $201.8 million, down from $210.3 million; and earnings per share of $1.18, down from $1.28. Wieland’s new target price is now $15, down from $19.

The Russell 2000 (NYSE: IWM) is sagging as investors look to the economy and await the words of key policymakers.

At 10:09 p.m. ET, the small-cap index had dropped 3.65 points, or 0.51%, to 718.28. The Dow Jones Industrial Average (INDU) was missing 60.72 points, or 0.48%, to 12,491.52.

Stocks are posting small declines as investors look ahead to the testimonies of policy makers appearing before the U.S. Congress. Treasury Secretary Henry Paulson is expected to tell lawmakers that the economy will slow but avoid recession.

Also appearing before a Senate committee on banking and housing at 10 a.m. ET is U.S. Federal Reserve chairman Ben Bernanke.

In economic news, the U.S. Labor Department reported before the opening that initial jobless claims for the weak ended Feb. 9 fell 9,000 to 348,000 from the preceding week’s downwardly revised total of 357,000.

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index will likely open in the green.

The economy will come into focus today as policy makers head to the U.S. Congress. Treasury Secretary Henry Paulson is expected to tell lawmakers that the economy will slow but avoid recession.

Also appearing before a Senate committee on banking and housing at 10 a.m. ET is U.S. Federal Reserve chairman Ben Bernanke.

In economic news, the U.S. Labor Department reported that initial jobless claims for the weak ended Feb. 9 fell 9,000 to 348,000. However, the four-week moving average rose.

Small-cap stocks staged a solid rally Wednesday, with the Russell 2000 climbing 16.45, or 2.33% to 721.93. The rise lifted the index through the recent consolidation rectangle, and the breakout carries a target move to 735. The only convincing resistance along the way is at the recent double top at 731, although we might encounter mild selling interest today in the 726 zone. Look for support at 712 and 701.

To many, a picture is worth a thousand words. For Virtual Radiologic Corporation (Nasdaq: VRAD) and NightHawk Radiology Holdings (Nasdaq: NHWK), two of the nation’s leading diagnostic imaging companies, a picture can be worth a thousand diagnoses.

Diagnostic imaging, which allows doctors to “see” inside a patient’s body using images, is forecasted to grow in volume 15% annually to over 500 million procedures by 2009, according to business research and consulting firm Frost & Sullivan. Although there is increased demand, the number of radiologists is growing only 2% annually, and hospitals and clinics must rely on third-party contractors to supplement their in-house radiology staff and assist with around-the-clock coverage, which is great news for Virtual Radiologic and NightHawk.

Newly public Virtual Radiologic is the second largest U.S. provider of diagnostic imaging services. Its customers include radiology practices, hospitals, clinics and imaging centers. The company employs board-certified radiologists and provides its services nationwide and around-the-clock through a scalable communications network based on an encrypted broadband Internet connection and proprietary workflow management software. Virtual Radiologic currently has 121 radiologists under contract.

Its radiology practice and hospital customers pay the company directly; the small cap doesn’t rely on third party reimbursement. Diagnostic imaging services are provided to 457 customers and 787 medical facilities, including 736 hospitals (13% of all U.S. hospitals). Over the past year, customers under contract have grown 35% and medical facilities served has increased 32%. Same-site volume growth averaged 24% in 2005, 20% in 2006 and 17% in the first nine months of 2007. Contract renewals are high, at 98%. 

Between 2004 and 2006, Virtual Radiologic’s revenues grew more than three-fold to $54 million from $13 million. The company’s revenues grew 127% year-over-year in the first nine months of 2007 and net income (before preferred dividends and redeemable convertible preferred stock accretion) increased to a $2.2 million gain from a $1.8 million loss. The company closed an initial public offering of 4.6 million shares at $17 per share in November. Analysts expect Virtual Radiologic to be profitable in 2008 and to produce 25% annual growth over the next five years. My $22 target for Virtual Radiologic Corporation compares with Tuesday’s closing price of $16.19. Over the last 52 weeks, shares have ranged between $16.04 and $26.97.

NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK) reported preliminary fiscal year 2007 results below the consensus on Wall Street due to lower fourth-quarter volumes from greater-than-expected seasonality and a delay in transitioning its former Radlinx physician contracts to the company's compensation model.

For the year ended Dec. 31, 2007, the Coeur d'Alene, Idaho-based small cap said it expects revenue in the range of $151 million to $152 million, below the $153.89 million five analysts polled by Thomson Financial were on average forecasting. The current year’s expected revenue compares with revenue of $92 million in 2006.

Adjusted earnings per share for 2007 are expected to be in the range of $0.90 to $0.91, compared with the consensus of five analysts polled by Thomson Financial of $0.94 per share. Last year, earnings per share were $0.70.

The company excluded a one-time charge of approximately $0.5 million related to the settlement of an acquisition-related legal dispute from its calculation of 2007 earnings per share numbers.

NighHawk provides radiology services to radiology groups and hospitals in the United States.

Shares of NightHawk Radiology (NHWK) slipped 10.81%, or $2.04, to $16.84 at 10:48 a.m. ET. Shares of NightHawk Radiology have been trading in the range of $16.20 and $26.68 for the past 52 weeks.

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

Small-cap stocks are poised for a bullish opening following news that durable goods orders for December increased more than expected.

The U.S. Census Bureau reported that orders for durable goods rose 5.2% in December. That’s more than the projected increase of 2.1% and above the revised growth of 0.5% in November. The data for November originally showed a decline of 0.1%.

The numbers also show that orders for nondefense capital goods excluding aircraft, a key measure of business equipment spending, added 4.4% after posting a decline of 0.2% in November.

Investors will be awaiting data on consumer confidence in December, to be released by the Conference Board at 10 a.m. ET.

The statistics will also be watched by the U.S. Federal Reserve, which kicks off a two-day policy meeting. An announcement will be made on Wednesday, with most observers expecting the Fed to lower its target interest rate.

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:

• TBS International Ltd. (TBSI), up 8%.
• Medivation, Inc. (MDVN), up 6% on Monday’s news that it plans to start a Phase III trial of an Alzheimer’s drug.
• Ness Technologies, Inc. (NSTC), up 5% on news it has signed a settlement deal in a long-running arbitration case.

Biggest percentage losers:

• LECG Corp. (XPRT), down 19% on news of a fourth-quarter net loss.
• ICU Medical, Inc. (ICUI), down 16% on news of a decline in fourth-quarter profit.
• NightHawk Radiology Holdings, Inc. (NHWK), down 13% despite news of a rise in preliminary year-end net income.

The Russell 2000 (NYSE: IWM) futures are rising and the small-cap index will probably open in the green following news of employment data.

Private sector employment in the United States increased by 40,000 in the month of December, according to a report by Automatic Data Processing, Inc. (NYSE: ADP). Employment in the service-providing sector of the economy grew 71,000, while employment in the goods-producing sector declined 31,000, the Roseland, N.J.-based provider of business outsourcing solutions said.

However, December’s increase of 40,000 shows a slowing of nonfarm private employment growth that averaged 118,000 during the three-month period from September through November.

That’s consistent with a slowing economy.

Separately, the U.S. Labor Department reported that jobless claims for the week ended Dec. 29 fell 21,000 to 336,000 from the previous week’s upwardly revised figure of 357,000.

Investors will also be waiting to see data on factory orders for November, set to be released by the U.S. Census Bureau at 10 a.m. ET. Statistics released on Wednesday showed a surprise decline in U.S. manufacturing in December, the news of which sent stocks tumbling.

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:

• KongZhong Corp. (KONG), up 13% on news it has signed a strategic alliance agreement with China Sports Industry Group Co.
• Sciele Pharma Inc. (SCRX), up 10% on news it has received approval to sell a new version of its high blood pressure drug.
• NightHawk Radiology Holdings, Inc. (NHWK), up 9%.

NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK)
Coeur d'Alene, Idaho 
http://www.nighthawkrad.net/

52-week low / high: $16.75 / $28
Shares Outstanding:  30.19 million
Market Capitalization:  $636.06 million

If you crashed your motorcycle in the middle of the night 10 years ago and suffered head trauma, many hospitals would have been pressed to provide radiology services rapidly and effectively. Today, these hospitals are increasingly turning to NightHawk Radiology Holdings, Inc. (Nasdaq: NHWK). The Coeur d' Alene, Idaho-based company harnesses the Internet to provide outsourced health-care services to hospitals based in the United States.

Radiologists who previously worked the graveyard shift can now get a good night’s sleep thanks to NightHawk, which allows hospitals to outsource initial reads of ultrasounds, MRIs, X-rays and other scans to American-trained and certified radiologists based in Switzerland and Australia. The firm says the doctors usually return their findings in less than 30 minutes. Currently, the company provides 24-hour, seven-days-a-week service to 1,350 hospitals in the United States.

“Why would a practice need to have one of their doctors on-call if they are only going to get one to five patients a night?” CEO Paul Berger said in a statement on the company’s website. “We are a better value than having one of their doctors not working at optimal capacity the next day due to loss of sleep.”

NightHawk’s results have been encouraging, but the acquisition of Midwest Physician Services, LLC in July has slowed profits. In the recent third quarter ended Oct. 30, the firm’s third-quarter revenue soared 79% to $45.2 million, in line with analyst estimates of $45.6 million and up from $25.2 million a year earlier. Organic revenue growth was 24% during the quarter. The firm’s quarterly profit totaled $3.8 million, or $0.12 per share, below Wall Street projections of $0.30 per share and down 32% from $5.6 million, or $0.18 per share, during the prior-year period.