Tag - PHHM

Small-cap stocks endured a choppy day of trading Tuesday, vacillating between positive and negative territory as index traders juggled both the positive and negative stock market implications of a rise in crude oil prices. In addition, the market struggled to evaluate the supportive side of an upside surprise in consumer confidence and a strong U.S. dollar against Federal Open Market Committee (FOMC) concerns about slower spending and the potential for further declines in payroll numbers. In the end, the Russell 2000 (NYSE:IWM) closed up 2.97, or 0.41%, at 723.51. For the year, the Russell is now down 5.5%, while the Dow is off 13.9% and the S&P 500 is down 13.4%.

Despite the uneven action today in small caps, it should be noted that price moves took place on relatively light volume, as we are winding down the summer vacation season, both here in the United States and abroad. Of greater significance is that the market has plunged back into the old range, validating the bearish topping pattern from the recent highs. In addition, the violation of key support along the 726 zone now leaves the market vulnerable to a slide toward the next logical support area near 711.50.

The lasting impression from today’s action could very well be the somber tone on the FOMC minutes (although the higher close certainly tames those concerns); but there were plenty of economic hurdles to navigate earlier this morning, including reports on housing and consumer confidence. The biggest surprise was a better-than-expected reading on consumer confidence, which laid the foundation for a relatively solid morning in stocks. The headline figure on confidence came in at 56.9, which was above the forecast of 53. It’s still not a lofty figure historically, but the . . .

Novatel Wireless Inc (Nasdaq:NVTL), Accuray Inc (Nasdaq:ARAY) and Hickory Tech Corp (Nasdaq:HTCO) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.     

Also included among the results: Investors Title Co (Nasdaq:ITIC), StellarOne Corp (Nasdaq:STEL), ImmunoGen Inc (Nasdaq:IMGN), Palm Harbor Homes Inc (Nasdaq:PHHM), American Woodmark Corp (Nasdaq:AMWD) and Toreador Resources Corp (Nasdaq:TRGL).    

Here are the biggest percentage losers among small caps:  

Small-cap stocks edged higher Monday, bucking a downdraft in other large-cap index products as more good news in the banking arena surfaced. In addition, movement into smaller energy and commodity stocks provided a lift to the Russell 2000 (NYSE:IWM). The small-cap benchmark gained 4.55, or 0.66%, to 697.63.

Large-cap indices also were pulled down by a slump in pharmaceuticals, with Merck and Co. (NYSE:MRK) and Schering-Plough (NYSE:SGP) taking a dive ahead of earnings on news that the cholesterol drug Vitorin didn’t deliver the goods in a heart study. The slide in pharma shares came despite a jump in Genentech Inc. (NYSE:DNA) shares on news of a buyout offer from Swiss firm Roche Holdings.

In today’s action, large-cap stocks also appeared to be more troubled by a bounce in crude oil prices than did small-cap shares. Crude oil prices rose $2.16 dollars a barrel, or 1.6% to $131 as the market braced for the first storm event of the year. Tropical Storm Dolly could reach hurricane status Tuesday as it moves into the Gulf of Mexico, but for now the storm track seems unlikely to create a major supply disruption out of Gulf production.

Energy markets also likely were underpinned by a soft tone in the U.S. dollar to start the week. The greenback slipped about 0.5% against the euro and about 0.2% versus the yen, which provided a lift to some commodities markets, including gold and copper. The iPath GSCI Total Return commodities index was up about 1.5% on the day.

Once again, the bullish side of things was dominated by a surprise earnings report in the banking sector. Last week, Wells Fargo & Co. (NYSE:WFC), JP Morgan (NYSE:JPM) and Citigroup (NYSE:C) all beat the Street’s forecast and today saw Bank of America (NYSE:BAC) top expectations. The recent spate of good news on the banking front has helped to shore up negative sentiment toward . . .

Small-cap stocks pushed lower Monday as credit crunch fears resurfaced, igniting a flurry of selling in the financial sector that spread into several other arenas as well. The Russell 2000 (NYSE:IWM) tumbled 7.25, or 0.97%, to 741.03. For much of the day, small caps appeared set to generate the largest one-day percentage decline in nearly a month, but some late buying in the final half-hour lifted the market well off the intraday lows.

Renewed concerns about the credit crisis originated overseas in the United Kingdom when Bradford & Bingley (LON:BB), a large mortgage provider for residential rental units said that housing market woes are deepening. Shares in Bradford & Bingley tumbled 24% and sparked selling enthusiasm in various European banks.

Selling in financial shares picked up additional momentum when Standard & Poor’s lowered credit ratings on some key U.S. securities firms. Lehman Bros. (NYSE:LEH) shed over 7% on the ratings news, while Morgan Stanley (NYSE:MS) and Merrill Lynch (NYSE:MER) both lost over 3%.

In addition to the concerns over mortgage houses, brokerage firms and other financial shares, a couple of major American banks changed up top management leaders, which also shook up the market. Wachovia Corp. (NYSE:WB) ousted its CEO and the stock slid about 2%. Meanwhile, Washington Mutual (NYSE:WM), said it would strip away the title of chairman from its chief executive next month. Washington Mutual shares dipped to their lowest level since mid-March on the news, but bounced back to close near steady levels.

Even though the credit crunch concerns dominated investor psychology today, a reversal in crude oil from overnight losses probably didn’t help matters for the bulls. Crude oil climbed back to nearly $128 dollars a barrel, while gold pushed higher. In addition, wheat futures jumped 2.7% and corn rallied about 2.6%. The Commodity Research Bureau Index climbed 0.85% and is just slightly below the record . . .

Selling enthusiasm swamped small-cap shares when the afternoon release of FOMC minutes suggested a lower growth forecast, inflation jitters and an April rate cut that was a close call. The Russell 2000 (NYSE:IWM) lost 8.54, or 1.16%, to 727.11. It was the fourth consecutive session in which small caps closed below the opening, something that hasn’t happened since January.

Small caps spent much of the day trying to hold onto tepid gains in the face of red ink in large-cap index products and yet another spike in crude oil prices. However, the selling dam burst after the release of the FOMC minutes. In addition to suggesting that the economy was on a slower recovery path, the Federal Reserve’s policy-making board basically did everything but say outright that rate cuts were on hold right now because of inflation issues.

It wasn’t hard to look for signs of fresh price inflation today. Within the energy arena, crude oil prices jumped to more than $133 dollars a barrel when a weekly inventory report showed a surprising dip in crude oil stockpiles versus expectations for an increase in supplies. With pump prices starting to move north of $4 dollars a gallon in some metropolitan areas, consumer’s discretionary spending money is getting even more pinched, which could stall any burgeoning economic recovery.

The sting of higher crude oil prices wasn’t just felt in consumer pocketbooks today. Airline stocks were shot down in stunning fashion, with the Amex Airline Index sinking more than 12% to fresh 52-week lows. At this time last summer, the Airline Index was trading in the $50 range … today, the price is below $19. Among airline stocks, small-capper US Airways Group (NYSE:LCC) fell 17% to new 52-week lows . . .

Small caps traded marginally in the green midday, while the other major indices skidded, as oil continued its record-setting skyward hike for the second straight session, stoking inflation concerns.

At 12:48 p.m. ET, the Russell 2000 (NYSE:IWM) edged up 5.1, or 0.69%, to 740.74, while the Dow slumped 39.73, or 0.31%, to 12,788.95.

Crude oil bolted north of $132 a barrel this morning, setting another record after the Energy Department reported a surprising decline in crude inventories last week after reporting gains in inventories for the preceding four straight weeks. After jumping as high as $132.08 a barrel, a barrel of crude retreated slightly to $131.75 midday.

While crude gained, the dollar sold off against the euro and the yen and gold gained $7.80 to $928 per troy ounce.

Midday, oil prices and inflation concerns are the major drivers behind the market; however sentiment and the market’s direction could change when the Federal Reserve releases its FOMC minutes at 2:00 p.m. ET.

In major large-cap headlines, media conglomerate Time Warner Inc. (NYSE:TWX) said this morning that it will separate both structurally and legally from its cable television division Time Warner Cable Inc. Technological juggernaut Hewlett-Packard Co. (NYSE:HPQ) reported after Tuesday’s close that second-quarter earnings increased 16%, noting that growth in the overseas arena offset domestic weakness. However, investors are still pouring over the printer and computer maker’s recent . . .

Small-cap shares pushed higher shortly after the opening, underpinned by decent earnings news and a lack of follow through on the safe-haven trade that dominated action Tuesday. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.32, or 0.45%, at 738.97.

The fact that stocks were able to look past yet another record high in crude oil prices was impressive, as most of the overnight news was tilted toward the bearish angle for equities. Crude oil prices climbed past $130 dollars a barrel, but it appeared that move had already been priced into the “fear” quotient during Tuesday’s decline.

In addition to the rally in crude oil, the U.S. dollar took a hit overnight, sinking about 0.7% versus the euro, and 0.3% against the yen. The greenback did appear to trim those losses when the stock market edged higher after the open.

The market has very much been tied to investment flows of late, and there is some thought that the market is underinvested in stocks with huge cash on the sideline. As that cash starts to chase the rally off the March lows, it could be enough to power the market higher, but it’s a tenuous play given strapped discretionary spending for consumers. Days of extremely light volume suggest that the sideline players . . .

Palm Harbor Homes, Inc. (Nasdaq:PHHM), DexCom, Inc. (Nasdaq:DXCM) and ADA-ES, Inc. (Nasdaq:ADES) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $750 million.

TransAct Technologies Inc. (Nasdaq:TACT), Gencor Industries, Inc. (Nasdaq:GENC) and ICx Technologies, Inc. (Nasdaq:ICXT) are also among the top small-cap percentage gainers.

Here are Monday's biggest percentage gainers among small caps:

Palm Harbor Homes, Inc. (Nasdaq: PHHM) CFO Kelly Tacke said fiscal year profitability for the maker of modular homes is not certain. Tacke made the comments during a morning conference call.

“As a result of our goodwill being impaired, our recent losses, we reviewed our deferred tax assets for impairment and despite our sequential improvement this quarter, profitability for this fiscal year is not certain,” Tacke said. “These accounting adjustments did not impact the company’s fundamental financial condition, which is solid.”

After Tuesday’s close, Palm Harbor said its second-quarter revenue fell to $144.6 million, below Wall Street projections of $152.4 million and from $179.4 million a year earlier. The Dallas, Texas-based firm’s net loss for the three months ended Sept. 28 was $98.1 million, or $4.29 per share, widely missing analyst estimates of a $0.05 loss per share and compared with a loss of $5.3 million, or $0.23 per share, during the same period of 2006. The results, however, include non-recurring, non-cash charges of $95.7 million, or $4.19 per share, related to the impairment of Palm Harbor’s goodwill and deferred tax assets.

The charges are confined to the company’s factory-built housing segment, Tacke said. The subprime fallout and a decline in order shipments in Florida, California and Arizona contributed to a $78.5 million impairment of intangible assets, she said. Accordingly, the chief financial officer said Palm Harbor recorded a reserve against the company’s deferred tax assets, resulting in a tax expense of $15.3 million.

“When we return to profitability, we will reestablish our deferred tax assets through reduced income tax expense,” Tacke said.

The appraisal values of Palm Harbor’s homes are declining due to greater availability of lower-priced site-built homes, the firm said in a statement. The company said valuations have been damaged by the volatile subprime mortgage market, which has increased the number of repossessions and defaults.

After reporting disappointing first-quarter results, Palm Harbor Homes, Inc. (Nasdaq: PHHM) executives said during a conference call this morning that some bright spots remain. For one thing, said the Addison, Texas-based manufactured homes maker, the company has $84 million in backlog orders, up 24% from last year’s first quarter. Also, Palm Harbor reported success with its new sales website.

“The number of customers who contacted Palm Harbor from the Internet versus a retail location increased 300% from last year during the quarter,” CEO Larry Keener said.

After Tuesday’s closing bell, the company reported net sales of $143.3 million for the first quarter ended June 29, compared with $194.5 million in the same period of 2006. Palm Harbor recorded a net loss of $4.3 million, or $0.19 per share, compared with a profit of $3.6 million, or $0.16 per share, a year earlier.

Wall Street analysts were expecting earnings per share of $0.01, and $176.1 million in revenue.

While the overall housing market is cooling, this is not necessarily the case for the modular home market. Modular homes, which are homes built in sections at a factory and then transported and assembled on-site, are a relatively new concept. They differ from traditional site-built homes and from manufactured homes, also known as mobile homes. Modular homes sales were particularly brisk after Hurricane Katrina, when the government paid nearly $900 million for mobile and modular homes to shelter dislocated residents. While Katrina-related demand fueled huge sales gains for modular home builders in 2006, growth is not entirely disaster-related. Their affordability compared to site-built homes is driving demand as well; the cost of modular homes typically averages 10% to 25% less than site-built homes.

Housing starts and modular home sales have moved in different cycles since the 1970s. One reason for this is the interest rate impact. When interest rates go up, demand for modular homes rises as well as new home buyers seek more affordable alternatives. Also, rising interest rates squeeze family budgets and some homeowners seek relief by trading down to a modular home.

Demographics are favoring long-term growth for the modular home industry. Retiring baby boomers on fixed budgets are expected to drive demand for modular homes in the Sunbelt states. In addition, while down from 2005 peak levels, demand in the New Orleans market is expected to remain strong for years to come.

Modular home starts in the United States totaled approximately 38,300 last year, representing about 2% of total 2006 housing starts. In the Northeast, Atlantic and Midwest, modular presently accounts for approximately 5% of all housing starts. In the West and South, areas primed for growth due to retiring baby boomers, penetration is less than 1%. Modular structures are also used in the construction of prisons, military housing, hotels and multi-story apartments.  Demand is fueled by modular housing’s advantages versus off-site construction, which include dramatically reduced construction time, lower costs and minimal site disruption.

Executives of the struggling factory-built home manufacturer Palm Harbor Homes, Inc. (Nasdaq: PHHM) said the market outlook is unclear in a Wednesday morning conference call. Acknowledging difficult business conditions, CEO Larry Keener warned investors that the company, which sells homes through 107 of its own retail stores and 350 independent retailers, is experiencing margin and downward pricing pressures.

“Are we finally at the bottom of a long slump?” Keener said on the call. “The signs are mixed for recovery.”

For the current first quarter ending June 30, Keener also said “nothing has significantly changed” regarding customer applications from the fourth quarter.

Still, the company feels sales this summer and early fall will be better than a year ago, Keener said, but he refrained from providing specific guidance. There are encouraging trends in Texas that started in late January, but the company is not sure if the increased consumer demand is going to be a continuing trend, he said.

After the close of Tuesday’s trading, Palm Harbor Homes reported weak fourth-quarter results after charges related to closing five retail stores and an unprofitable factory. The Dallas-based company reported revenues of $135.9 million for the fourth quarter ended March 30, down from $180.3 million a year earlier. The net loss for the quarter was $7.2 million, or $0.32 a share, down from a profit of $3.2 million, or $0.14 a share, in the fourth quarter of 2006.

Cypress Bioscience, Inc. (Nasdaq: CYPB) shares almost doubled in after-hours trading after it and Forest Laboratories (NYSE: FRX) announced positive results on a Phase 3 study for milnacipran in treatment of fibromyalgia syndrome. Cypress Bioscience, headquartered in San Diego, Calif., and Forest Laboratories have only reviewed so far initial top-line results; additional analyses on the results will be completed in the coming weeks. Subject to a favorable review of the full study results and based in part on communication with the FDA, the companies would plan to submit a New Drug Application for milnacipran around the end of 2007. Cypress Bioscience
was quoted at $16.85, up $8.40, or 99.41%.

Minneapolis, Minn.-based Wilsons The Leather Experts Inc. (Nasdaq: WLSN) reported a net loss for the first quarter ended May 5 of $0.54 per share, compared with an average analyst estimate calling for a loss of $0.34. In the same quarter a year ago, Wilsons The Leather Experts lost $0.17 per share. Quarterly revenues, at $57.6 million, were below both year-ago at $74.7 million and expectations for $65.02 million. Shares of Wilsons, a specialty retailer of leather accessories and apparel, was virtually unchanged in after-hours trading at about $1.19.

Giga-tronics, Inc. (Nasdaq: GIGA) was lower in after-hours trading after the company said net sales in the fourth quarter ended March 31 were $5.2 million, down 9% from the same quarter a year ago. The San Ramon, Calif.-based company reported a net loss of $0.10 per diluted share, compared with a net loss of $0.02 in the year-ago period. Giga-tronics, which shows no analyst coverage, produces microwave components for defense electronics and wireless telecommunications. Shares were 12% lower in after-hours trading at $1.80.

Excel Maritime Carriers Ltd (NYSE: EXM) reported earnings per share for the first quarter ended March 31 of $0.61, below the average analyst estimate of  $0.64 and up from $0.37 in the first quarter of 2006. The company, headquartered in Athens, Greece, said revenues for the quarter were $36.0 million, beating analysts' expectations for $35 million and up from $29.5 million for the same quarter in 2006. Excel Maritime--an owner of dry bulk carriers and transportation service provider for dry bulk cargoes--also announced it would distribute a quarterly dividend of $0.20 per common share, starting with the first quarter. In after-hours trading, shares were down $0.17, or less than 1%, at $25.29.