Tag - OSTK

There is an expectation building in the market that I just can't support – and it has everything to do with the American consumer. Retail stocks are trading at elevated multiples on expectations that the consumer is healthier then economic data suggests. But don't be fooled, these stocks are expensive and the last thing you want to do going into the New Year is buy an overpriced stock - especially when you should be bargain hunting.

American consumers will begin to show their true colors when they make an appearance at their favorite mall or retail outlet this Black Friday - the official kick-off to the holiday shopping season.

The Friday after Thanksgiving marks the day when many retailers can count on high store traffic as consumers hit shopping malls and web sites around the country. But it can also be a rather dark day for consumers who find themselves racing through isle after isle to get the goods, crammed elbow to elbow while they wait in the cashier's line, and sit in traffic with the rest of the county.

While this may indeed be a Black Friday for retailers and consumers, I'm not expecting great results from the overall holiday shopping season.

But don't tell that to the market, as it seems to think boon times are ahead for the retail sector. The stock market is pricing in a strong holiday shopping season according to the current price level of the S&P Retail Index (Chicago Options: ^RLX). The index is trading just 1.8% below the 52-week high it hit last Monday, and at levels not seen since September of 2008. And since the 2009 March lows, the index has outperformed the broader S&P 500 by 15%.

For an industry that has experienced the negative impact of this recession first hand, it seems surprising that investors have flocked to retailers. Certainly the retail companies that have survived the downturn thus far are likely to remain in business through this economic cycle. But the dismal financial performance of many retailers makes it difficult to justify the recent run up in their share prices. And the recent rise of retail stocks tells me the market has priced in more than we should expect out of this year's holiday sales.

Orexigen Therapeutics Inc. (Nasdaq:OREX), Oriental Financial Group Inc. (Nasdaq:OFG) and Imation Corp. (Nasdaq:IMN) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Charlotte Russe Holding Inc. (Nasdaq:CHIC), AirTran Holdings Inc. (Nasdaq:AAI), Overstock.com Inc. (Nasdaq:OSTK), Fulton Financial Corp. (Nasdaq:FULT), Terremark Worldwide Inc. (Nasdaq:TMRK) and Martin Midstream Partners LP (Nasdaq:MMLP).

Accuray Inc. (Nasdaq:ARAY), RG Barry Corp. (Nasdaq:DFZ) and China Biotics Inc. (Nasdaq:CHBT) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: CyberSource Corp. (Nasdaq:CYBS), Overstock.com Inc. (Nasdaq:OSTK), Colony Bankcorp Inc. (Nasdaq:CBAN), Abaxis Inc (Nasdaq:ABAX), Saia Inc. (Nasdaq:SAIA) and Acxiom Corp. (Nasdaq:ACXM).

Small-cap stocks edged higher on the opening, underpinned by a GDP report that wasn’t as bad as feared and by a smattering of decent earnings reports on the small-cap front that lifted the Russell relative to the large-cap indices. But those early gains were trimmed as the market remains concerned about the economy and corporate profits. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.17, or 0.04%, at 453.07.

The quarterly GDP report came in at minus 3.8%, which was quite a bit better than feared: the pre-release forecast called for a slide of 5.3%. Even though the report showed less contraction than expected in the economy, this still marked the worst showing for the U.S. since 1982. In addition, consumer spending dropped for two consecutive quarters for the first time since 1990-1991 as people struggle with sinking home values, mounting job losses and stock market devaluation. There was some concern that the “upside” surprise on GDP only delays the pain, especially as corporate layoffs have escalated in January.

While the GDP report was the primary target on everyone’s radar this morning, there were also economic releases on the employment cost index (it rose 0.6%, about what was expected); the Chicago Purchasing Manager’s Survey; and the Michigan sentiment survey. The Chicago headline figure came in at 33.3, which was below the forecast of 34.9 and which marked a new cycle low for the reading on Midwest manufacturing. The market appeared to slide after the Chicago number came out. Meanwhile, the Michigan figure was at 61.2, relatively close to the projection of 61.9.

One measure of just how ugly things have become, the Goldman Sachs Analyst Index (GSAI), a survey of Goldman’s equity analysts across a range of sectors, . . .

Small-cap stocks edged higher on the opening, underpinned by a GDP report that wasn’t as bad as feared and by a smattering of decent earnings reports on the small-cap front that lifted the Russell relative to the large-cap indices. But those early gains were trimmed as the market remains concerned about the economy and corporate profits. Some of today’s small-cap gainers were Saia Inc. (Nasdaq:SAIA), CyberSource Corp. (Nasdaq:CYBS) and Digital River (Nasdaq:DRIV).

Other Market Watch highlights today included:

• In Asian trading, bank and tech stocks paced the declines, although shares in Hong Kong were up modestly hoping for rate cuts out of China.  
• In overseas trading last night, Asian stocks took a hit, breaking a string of four consecutive winning days.  
• The Goldman Sachs Analyst Index, a survey of Goldman’s equity analysts across a range of sectors, fell to an all-time low in January.  
• The Chicago headline figure came in at 33.3, which was below the forecast of 34.9.

Small Cap Gainers:

• Saia Inc. gapped higher after reporting quarterly profits, with the trucking firm climbing 18%. See (Nasdaq:SAIA).
• CyberSource Corp. gapped higher and jumped 20% as the electronic payment provider posted solid earnings results. See (Nasdaq:CYBS).  
• Digital River announces Q4 and full-year 2008 financial results; shares pop 16%. See (Nasdaq:DRIV).
• Overstock.com got an earnings lift today, with the online retailer climbing 15%. See (Nasdaq:OSTK).  

Small Cap Losers

• Data Domain tops Q4 EPS by $0.06, issues mixed guidance; shares fall 16% in pre-market. See (DDUP). 

Shares of Overstock.com Inc. (Nasdaq:OSTK) dipped 3.4% this morning after the company announced after the market closed Tuesday that it has filed a new $500 million shelf registration statement with the Securities and Exchange Commission. The Salt Lake City-based online retailer said that the new statement will replace the company’s existing one, which would have expired later this year. Once effective, the new statement will allow Overstock.com, when ready, to sell up to $500 million of its debt securities, common stock, warrants and other securities in one or more offerings.

The company said it doesn't have current plans to raise capital but wants to have a statement in place “should the need or opportunity arise to raise capital on attractive terms.”

This morning, Overstock.com is trading at $18.75, down $0.66 from Tuesday's close. The stock has traded as low as $8.61 and as high as $39.39 in the past year.

For detailed price information and news stories on Overstock.com, click OSTK.

AtriCure Inc. (Nasdaq:ATRC), Electro-Optical Sciences Inc. (Nasdaq:MELA) and Royale Energy Inc. (Nasdaq:ROYL) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.      

Also included among the results: Gilat Satellite Networks Ltd. (Nasdaq:GILT), Overstock.com Inc. (Nasdaq:OSTK), Fuqi International Inc. (Nasdaq:FUQI), PGT Inc. (Nasdaq:PGTI), SeaBright Insurance Holdings Inc. (Nasdaq:SEAB) and MarketAxess Holdings Inc. (Nasdaq:MKTX).   

Here are the biggest percentage gainers among small caps:  

Small-cap stocks pushed lower, pulled down by losses in the tech sector and profit-taking from traders who caught the recovery rally off the lows. Today’s action represented a relatively calm finish to a frantic, volatile week that saw equities recover from the doorstep of desperation. For Friday, the Russell 2000 (NYSE:IWM) closed down 3.54, or 0.51%, at 693.08.

Despite the modest pullback today, small caps closed out the week with a gain of 18.13, or 2.68%, which is no small accomplishment considering the market made four-month lows on Tuesday when panic about the solvency of government-sponsored mortgage lenders hit a crescendo. At one point earlier this week, there seemed to be a swelling sense of doom about potential systemic risk within the entirety of the financial system, so the dramatic bounce off the lows swept in an important calming influence into things. What’s more, the nice rally off those lows turned the chart picture from a bear market path into a potential bullish reversal, which is an encouraging signal.

As for today’s action, financial stocks continued to seduce investors back into the fold, with the financial SPDR rising 3.5% despite the pullback in other sectors. Clearly, tech stocks were out of favor with stock market traders today, as soft earnings from key players such as Microsoft (Nasdaq:MSFT) and Google (Nasdaq:GOOG) overwhelmed bright spots such as IBM Inc. (NYSE:IBM). For the day, GOOG was down 9.7% and MSFT lost 6%.

Crude oil prices actually closed out Friday in negative territory after spending most of the session in the green, which kept a lid on buying enthusiasm in small caps throughout much of the day. Crude oil prices collapsed some 15% off last week’s record highs, which should bring some relief at the gas pump for consumers if prices will only stay contained looking forward. Although a late wave of selling pulled crude oil lower on the day, there was some reluctance to press . . .

SemGroup Energy Partners LP (Nasdaq:SGLP), UAL Corp (Nasdaq:UAUA) and Gmarket Inc (Nasdaq:GMKT) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Medivation Inc (Nasdaq:MDVN), Crocs Inc (Nasdaq:CROX), ValueClick Inc (Nasdaq:VCLK), Overstock.com Inc (Nasdaq:OSTK), Canadian Solar Inc (Nasdaq:CSIQ) and ViroPharma Inc (Nasdaq:VPHM).

Here are the most actively traded companies among small caps:

Small-cap stocks pushed higher Monday, buoyed by an improved tone in financial shares, a rise in tech stocks and a pullback in crude oil prices from record highs set early in the session. The Russell 2000 (NYSE:IWM) gained 7.12, or 0.97%, to 740.74.

“Financials are strong going into Goldman Sachs earnings tomorrow. Lehman Bros. (NYSE:LEH) also failed to ignite selling and there was a Washington Post story suggesting that the Fed would not tighten rates, which has helped financials,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview.

Kalivas said that investors appeared to be rotating out of some defensive names and into financial stocks. In addition, smaller oil companies and regional banks were helping to provide a lift to small caps relative to the big index products.

Small caps started out the day in the red, pressured by a sudden upside burst in crude oil prices, which charged to new record highs just shy of $140 dollars a barrel. The surge in energy prices was complemented by climbing metals prices and record high corn prices. However, a pullback in crude oil back toward $134 helped ease concerns about energy prices and refocused attention on a solid performance in financial issues.

The U.S. dollar slumped against the euro today, which played a role in supporting the energy market, as well as other commodities. The greenback was pressured by record inflation numbers in the eurozone, a weekend G8 meeting that did not spotlight a strong dollar stance and by talk that rate hikes in the United States have been premature. Goldman Sachs weekly Economics Analyst report said that while they could not rule out a rate hike given recent warnings by Federal Reserve Chairman Ben Bernanke and vice chairman Donald Kohn about inflation expectations that tightening at this stage is “inappropriate” and “unlikely any time soon.”

Goldman Sachs analysts said that “as these points become apparent, we . . .

Small-cap stocks took a mild dip Friday, pressured by pre-weekend profit-taking from traders who were eager to cash in on the recent upswing, by jitters over sagging consumer sentiment and by soaring crude oil prices. The Russell 2000 (NYSE:IWM) closed down 2.21, or 0.30%, at 741.17. Despite the sloppy finish Friday, small-cap shares still notched the highest weekly close of 2008.

Small-cap shares have been a leading performer of late versus large-cap index products, reminiscent of the long bull market run from 2002 to 2007 in which small-cap products paced the way toward record highs. However, the Russell 2000 did close lower Friday while the S&P 500 was up slightly, which is a mild caution sign looking ahead to next week’s action.

In addition to the aforementioned profit-taking desire, the University of Michigan consumer sentiment survey tumbled to 28-year lows for the month of May when the data was released Friday morning. The lows underscore the fragility of the recent stock market rally, especially when consumer spending funds are crimped by soaring gasoline and food prices.

Crude oil took flight Friday, climbing to nearly $128 dollars a barrel. Although some energy stocks stand to benefit from higher crude prices, for the most part these record levels are seen as an overall negative to stocks because the economy is still powered by spending. Goldman Sachs, a key investment banking and research firm, on Friday raised its price targets on crude oil, which can only send shivers down the consumer spine – especially heading toward the start of the summer holiday driving season in the United States.

The stock market appeared to push through Friday’s “double witching” options expiration without too much volatility. Once the S&P 500 moved well past the concentrated strike at 1,400 late this week, it took away some of the excitement surrounding expirations.

Small-cap stocks are expected to open slightly lower Tuesday, in line with mild declines in after-hours trading. The Russell 2000 (NYSE:IWM) was down about 0.3% overnight, which would translate to a cash opening near 716. Look for initial support for the Russell this morning at 714, then at 709 and 705. On the upside, resistance remains near 724, then at 731.

The market’s pullback Tuesday was confined to an inside session move, and was consistent with a mild overbought correction. As long as the market doesn’t sink through 709, it won’t endanger the advance from late last week.

Stock indices around the world were narrowly mixed overnight, with Japan’s Nikkei down 1%, Hong Kong’s Hang Seng up 0.8% and Europe markets slightly mixed depending on the nation. The U.S. dollar was flat to soft overnight, crude oil remained bid amid strife in producing country Nigeria, a refinery strike in Scotland . . .

Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:


• Raining Data Corp. (Nasdaq:RDTA), up 40% to $9.48 on news it plans on launching a new Internet browser-based application.
• Overstock.com Inc. (Nasdaq:OSTK), up 32% to $18.47 on news of a narrower first-quarter loss.
• DexCom Inc. (Nasdaq:DXCM), up 21% to $7.05.


• Chemotherapy Inc. (Nasdaq:TOMO), down 32% to $9.10 on news it reduced its earnings and sales outlook for the full year.
• Pharmaxis Ltd. (Nasdaq:PXSL), down 25% to $23.00.
• GFI Group Inc. (Nasdaq:GFIG), down 24% to $11.93.

The Russell 2000 (NYSE:IWM) is soaring on news of strong earnings from other major players and despite a steep loss at Citigroup Inc. (NYSE:C). At 12:23 p.m. ET, the small-cap index had jumped 15.78 points, or 2.23%, to 723.78. The Dow Jones Industrial Average was up 261.85 points, or 2.07%, to 12,882.34.

Stocks small and large are posting impressive gains as investors hope that there is relief in sight for the financial sector.

The sentiment is based on Citigroup’s announcement before the opening that its first-quarter net loss was a ghastly $5.1 billion, or $1.02 per share, worse than the $0.95 per share expected by analysts.

However, investors were expecting worse and actually took the numbers as a bullish sign, particularly as revenues came in above expectations and write-downs from the credit crunch were not as bad as some feared.

With the financial sector posting gains, small caps are no exception. Shares of World Acceptance Corp. (Nasdaq:WRLD), which is in the small-loan consumer . . .

TomoTherapy Inc. (Nasdaq:TOMO), SiRF Technology Holdings Inc. (Nasdaq:SIRF) and Overstock.com, Inc. (Nasdaq:OSTK) are among the most actively traded companies in Friday's pre-market trading among those with market capitalizations under $750 million.

Sigma Designs, Inc. (Nasdaq:SIGM), China Sunergy Co., Ltd. (Nasdaq:CSUN) and Akeena Solar, Inc. (Nasdaq:AKNS) are also among the most actively traded small-cap companies in pre-market trading.

Here are the most actively traded small-cap companies in Friday's pre-market trading:

Shares of Overstock.com, Inc. (Nasdaq:OSTK) are surging ahead of the opening bell after the online closeout retailer this morning reported first-quarter results that substantially beat the consensus on Wall Street with higher revenues and a narrower-than-expected net loss. The small cap noted above industry-level revenue growth and a cap off of its turnaround plan during the quarter helped buoy results.

Shares vaulted 32.1%, or $4.49, to $18.49 in pre-market trading. For detailed price information and recent news stories about Overstock.com, click OSTK.

The Russell 2000 (NYSE:IWM) is posting big gains as a rally takes hold on Wall Street. At 2:42 p.m. ET, the small-cap index had climbed 22.68 points, or 3.33%, to 704.10. The Dow Jones Industrial Average (INDU) was up 235.43 points, or 1.90%, to 12,596.75.

The bulls are running the show as investors as stocks small and large rally on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from the original bid of $2 a share. JPMorgan has also agreed to guarantee Bear Stearns’ borrowings from the Federal Reserve Bank of New York.

Bear Stearns collapsed under the weight of investments made on securities backed by subprime mortgages.

Speaking of the housing sector, sales of existing homes rose 2.9% in February, the National Association of Realtors reported after the start of trading. Investors took that as a bullish sign because economists were expecting . . .

The Russell 2000 (NYSE: IWM) and the Dow are rising on news of an upward revision in fourth-quarter productivity.

At 10:13 a.m. ET, the small-cap index had added 4.78 points, or 0.70%, to 685.76. The Dow Jones Industrial Average (INDU) was up 92.89 points, or 0.76%, to 12,306.69.

Stocks are on the green on news that U.S. productivity for the fourth quarter of 2007 was revised up. The U.S. Commerce Department reported before the start of trading that business productivity grew 1.9% at an annualized rate, above the initial estimate of 1.8%. Economists were not expecting an upward revision.

Hours worked fell 1.6% as businesses reduced employees’ hours in order to save money.

But a bearish report by payroll services provider Automatic Data Processing, Inc. (NYSE: ADP) is holding the bulls back. The Roseland, N.J.-based company said before the opening that private employers cut 23,000 jobs in February, the biggest drop in nearly five years.

Employment is seen as a lagging indicator and the decline tells us that the labor market is softening as economic growth is slowing.

The Russell 2000 (NYSE: IWM) is rising on news of surprisingly strong January U.S. retail sales.

At 10:10 a.m. ET, the small-cap index had gained 8.43 points, or 1.19%, to 713.91. The Dow Jones Industrial Average (INDU) had added 97.22 points, or 0.79%, to 12,470.63.

Stocks small and large opened with a jump on news that retail sales unexpectedly rose 0.3% in January. That beats economists’ forecast of a decline of 0.2% and is an improvement over December’s 0.4% drop.

Sales excluding autos also increased 0.3%, more than the projected 0.2%. Sales excluding gasoline rose just 0.1%.

The numbers are good news for those worried that there is a pullback in consumption that will send the economy into recession. Consumer spending is about 70% of U.S. gross domestic product.

However, furniture sales fell, as did sales of building materials. Department store sales also declined.

Small-cap stocks are rising, helped by news that predictive analytics technology maker SPSS Inc. (Nasdaq: SPSS) saw its fourth-quarter profit increase five-fold to $10 million, or $0.50 per share, compared with $2 million, or $0.10 per share, a year earlier.

Overstock.com, Inc. (Nasdaq: OSTK) CEO Patrick Byrne said a potential economic downturn could benefit the online retailer of discount brand-name merchandise. Affluent and low-income shoppers are normal discount shoppers, but he said economic turmoil could push middle-class customers to Overstock’s website.

“I’m really quite pessimistic about the state of the American economy, but I think we may pull it off again. I think it’s about a 50-50 chance,” Byrne said. “In general, that works for us. You go to a Costco parking lot and you see Mercedes Benzes and junkers. If we go into a recession, the claim [that middle-class shoppers don’t shop at low-cost stores] becomes less true. They’ll find more ways to discount shop.”

Middle-class shoppers will look to maintain their lifestyle as income shrinks, he said.

Before the opening, Overstock reported a fourth-quarter loss of $4.3 million, or $0.18 per share, compared with a loss of $45.6 million, or $2.15 per share, a year earlier. Wall Street analysts, on average, predicted earnings of $0.13 per share.

For the three months ended Dec. 31, Overstock’s revenue increased 2% to $300 million, up from $294 million during the year-ago period. The revenue results missed analysts’ projection of $307.8 million in revenue.

Quarterly operating expenses fell 22% to $53.6 million, from $68.3 million a year earlier. For fiscal 2007, operating expenses decreased to $169.6 million, from $188.6 million in fiscal 2006.

“I would say that you can expect [operating expenses during fiscal 2008] to be flat or down,” Byrne said.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains on news of a better-than-expected jobs report.
 
At 10:47 a.m. ET, the small-cap index had added 0.97 points, or 0.13%, to 754.52. The Dow Jones Industrial Average (INDU) was up 28.61 points, or 0.22%, to 13,072.57.

Stocks both small and large are in positive territory following the release of a report that showed higher-than-expected U.S. private sector job growth.

Nonfarm private employment increased 40,000 in December, according to Automatic Data Processing, Inc. (NYSE: ADP). The provider of business outsourcing solutions said that small- and medium-sized businesses more than accounted for the rise, adding 75,000 jobs. Meanwhile, larger companies cut 35,000 jobs.

ADP said that the gain was greater than forecasted, but warned that the numbers show a slowing of nonfarm private employment. The three-month period from September through November averaged 118,000 new jobs.

The data is consistent with a slowing economy.

Overstock.com, Inc. (Nasdaq: OSTK) shares are falling after the online retailer said its fourth-quarter gross margins are likely to be lower because of aggressive price discounting. During a Friday interview after the closing, CEO Patrick Byrne said the company is having a “pretty nice” Christmas selling season.

Byrne said the company’s bookings have increased compared to fourth-quarter 2006 by about 10%. However, he warned that the firm’s gross margins will be lower and said he expects fourth-quarter net income in the range of -1% to 1% of revenue. The company expects to make between $50 million and $60 million in operating cash flows during the fourth quarter, he said.

"Next year we have an initiative to open up Canada and a couple countries in Europe,” Byrne said.

In response to Byrne’s interview, which took place on CNBC, CIBC World Markets cut its fourth-quarter earnings estimate for Overstock.com to a loss of $0.08 per share, from a prior estimate of a profit of $0.15 a share.

In afternoon trading, OSTK shares are down 20.85%, or $4.97, at $18.87. Over the last 52 weeks, shares have ranged from $14.05 to $39.39.

Overstock.com, Inc. (Nasdaq: OSTK) shares are rising after reports that the online retailer’s website traffic soared on the Monday after Thanksgiving, dubbed Cyber Monday. According to Internet traffic tracker comScore, the number of Overstock.com visitors rose 139% compared to the average daily visitors during the month leading up to Monday. Of the top 10 retail sites ranked by visitors, only MSN Shopping saw a more dramatic traffic increase.

In other positive news, Stifel Nicolaus & Co. upgraded the firm’s stock to “hold” from “sell.” The investment bank cited Overstock.com’s share price, which has declined 40% in the last month, as a reason in the upgrade.

ComScore said total Internet spending on Cyber Monday rose 21% to $733 million, compared with 2006. On Thanksgiving Day, sales rose 29% to $270 million, compared with a year earlier.

In afternoon trading, OSTK shares are up 14.04%, or $3.11, at $25.26. Over the last 52 weeks, shares have ranged from $13.93 to $39.39.

The Russell 2000 (NYSE: IWM) futures are flat but the small-cap index will probably be weighed down by news of poor earnings.

The bears will most likely overpower the bulls after the opening, following news that Wachovia Corp. (Nasdaq: WB), the fourth largest U.S. bank, reported a decline in its third-quarter profit. The Charlotte, N.C.-based bank attributed the shortfall to difficult credit market conditions.

In other disappointing news, heavy equipment maker Caterpillar Inc. (NYSE: CAT) announced a quarterly profit that missed analysts’ forecasts. Net income came to $1.40 per share, below the projected $1.42 per share.

That’s a sign of the slowdown in housing, as fewer builders are breaking ground on fewer new houses and have less need for Peoria, Ill.-based Caterpillar’s signature products.

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:

• Overstock.com Inc. (OSTK), up 15% on news of a narrower third-quarter loss.
• Steve Madden Ltd. (SHOO), up 14% on news of a possible sale.
• CyberSource Corp. (CYBS), up 14% on news of better-than-expected third-quarter results.

Biggest percentage losers:

• Nanophase Technologies (NANX), down 13% on news of a wider third-quarter loss.
• Center Bancorp Inc. (CNBC), down 2%.
• China Techfaith Wireless Communication Technology Ltd. (CNTF) down 2%.

Targa Resources Partners LP (Nasdaq: NGLS), Origin Agritech Ltd. (Nasdaq: SEED) and Packeteer, Inc. (Nasdaq: PKTR) are among the most actively traded companies in Friday pre-market trading among those with market capitalizations under $750 million:

Shares of Overstock.com Inc. (Nasdaq: OSTK) jumped in pre-market trading after the online retailer of discount brand name merchandise reported a narrower net loss than analysts had anticipated.

For the three months ended Sept. 30, the Salt Lake City, UT.-based company recorded a net loss of $4.7 million, or $0.20 per share, while five analysts polled by Thomson Financial were expecting a loss of $0.39 per share. In the third quarter of 2006, the company booked a loss of $24.5 million, or $1.19 per share.

Revenue increased 3% to $161.9 million from $156.9 million

Shares of Overstock.com (OSTK) gained 11.7%, or $3.47, to $33.12 in pre-market trading. Shares of Overstock.com have been trading in the range of $13.40 to $35.96 for the past 52 weeks.

Overstock.com, Inc. (Nasdaq: OSTK) shares are plunging after investment firm Stifel Nicolaus & Co. downgraded the company to “sell” from “hold.” Analyst Scott Devitt downgraded the company due to a recent run-up in stock price.

"We consider buying the shares on pullbacks into the upper teens or if our expectations for growth are proven conservative," Devitt said in an investment note.

In afternoon trading, OSTK shares are down 10.46%, or $3.56, at $30.46. Over the last 52 weeks, shares have ranged from $13.40 to $35.96.

Occam Networks, Inc. (Nasdaq: OCNW), Fuwei Films Co., Ltd (Nasdaq: FFHL) and Schmitt Industries, Inc. (Nasdaq: SMIT) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

Here’s a real test for the old saw that there’s no such thing as bad publicity. The good news: the New York Yankees’ Alex Rodriguez, A-Rod, the highest-paid player in Major League Baseball, is photographed wearing your True Religion brand jeans. The bad news: the photograph is taken in Las Vegas to catch A-Rod stepping out on his wife with a stripper.

This is the kind of quirky event that has kept True Religion Apparel, Inc. (Nasdaq: TRLG) on a roller coaster. Somehow it worked better when Paris Hilton conspicuously wore True Religion jeans on her way to jail. Another marital issue affecting the stock: True Religion CEO Jeffrey Lubell last month had to sell 2.3 million company shares, about one-fourth of his holdings, as part of a divorce settlement with his ex-wife, Kymberly Gold-Lubell, who used to be in charge of women’s design for the maker of premium jeans and other sport apparel.

On the financial front, True Religion rocketed upwards at the end of May when Sterne Agee analyst Ronald Bookbinder upgraded the stock to “Buy” from “Sell.” The stock went shooting up in the following days to nearly $20 from about $16, in keeping with Bookbinder’s new target. Last week CIBC analyst Dorothy Lakner upgraded True Religion to “Sector Outperform” from “Sector Perform.”
 
At the same time, True Religion ended its talks with Goldman Sachs about looking for a possible buyer. The company has felt for some time that its stock is undervalued, but decided for now to remain independent.

While True Religion is forging ahead on several fronts, the biggest plus for analysts is the company’s aggressive expansion of its direct retail operations as it opens its own stores in all the trendy shopping venues. When a company manages to sell a pair of jeans for an average $200 apiece and already has a gross margin north of 50%, it might seem hard to significantly improve margins. But direct retail does it – True Religion was realizing a 75% gross margin in the four stores it had open by the end of 2006. Plans call for having 14 stores by the end of this year, 30 by the end of 2008 and more than 50 by the end of 2009.