Tag - RCH

Small-cap stocks pushed higher Thursday, lifted by asset flow into equities, demand for technology shares trickling down from the large-cap issues and a perception that credit conditions are on the improve. The Russell 2000 (NYSE:IWM) rose 7.31, or 0.99%, to 743.28, the highest daily close since Jan. 3.

“I think investors are underweight equities, and in recent weeks there has been movement out of cash and treasuries into stocks,” Nick Kalivas, vice president of financial research with MF Global, told SmallCapInvestor.com.

Kalivas said that a narrowing of credit spreads after the JP Morgan purchase of Bear Stearns and the Fed’s aggressive open door policy on liquidity to the dealer community has sparked buying in equities. In addition, huge debt issuance in the last few weeks has bolstered corporate balance sheets.

“I think money has come to stocks because of robust profits in the non-financial sector and the macro news has not shown further meaningful weakness in the economy. I also don’t think players want to be too short given the injection of stimulus from tax rebate checks and other measures,” Kalivas said. Simply put, stocks are cheap relative to treasuries and cash, which attracts money flow into equities.

More attractive pricing of DRAM products appears to be pulling investors toward tech issues. What’s more, the possibility of great new “toys” from big-cap players like Research in Motion (Nasdaq:RIMM), with the touch screen Blackberry, and Apple Inc. (Nasdaq:AAPL), with its iPhone upgrades spreads goodwill down to all tech stocks, big and small. Hey, we’re all kids at heart, and there’s nothing like . . .

China Shenghuo Pharmaceutical Holdings Inc (Nasdaq:KUN), China Architectural Engineering Inc (Nasdaq:RCH) and Asia Time Corp (Nasdaq:TYM) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.

National Coal Corp (Nasdaq:NCOC), Gentium SpA (Nasdaq:GENT) and Stanley Inc (Nasdaq:SXE) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

Small-cap shares are edging higher in midday trading, supported by a reversal rally that was triggered ahead of the opening by an inflation report suggesting that the economic slowdown is moderating inflation related to soaring food and energy prices. At 1:20 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.71, or 0.91%, at 743.56.

The consumer price index (CPI) headline figure came in at 0.2%, which was below the forecasted 0.3%. The “core” reading, which excludes food and energy costs, came in at 0.1%, also below the median forecast of 0.2%. The CPI report suggested inflation wasn’t out of control, which means the Federal Reserve can keep interest rates low in response to the sputtering economy.

“Headline consumer inflation rose moderately in April because a sharp rise in food prices was partially offset by no change in energy costs,” Steven Wood, chief economist with Insight Economics, said in an email. “Meanwhile, core consumer inflation rose only slightly with largely offsetting price accelerations and decelerations in the various expenditure categories. Although energy prices are expected to rise sharply over the next several months, weakening economic activity over the next several quarters should help cap the gains in core inflation. Although the Fed is currently on hold, at least temporarily, they have heaved a collective sigh of relief with the release of this data,” Wood said.

The market appeared to take away a perception of a hawkish tone from the array of Federal Reserve speakers that were out and about Tuesday, and the CPI . . .

CMGI, Inc. (Nasdaq: CMGI), American Electric Technologies, Inc. (Nasdaq: AETI) and Hoku Scientific, Inc. (Nasdaq: HOKU) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

China Architectural Engineering, Inc. (AMEX: RCH) shares are jumping after the construction company announced it was awarded a contract to build the façade for the China Water Conservancy Museum in Hangzhou, China. The company said this contract and the Hangzhou International Conference Center contract announced earlier this week are worth more than $8 million.

“As an important representation of China’s ancient architecture, the ‘Xiaoshan International Water City’ has finished construction in Hangzhou, China, and we are proud to announce that our company has been awarded the contract to install the external facade of the China Water Conservancy Museum,” CEO Ken Yi Luo said in a statement.

The museum will be built on the shore of the Qiantang River in the form of a traditional Chinese tower.

In pre-market trading, RCH shares are up 10.01%, or $0.70, at $7.69. Over the last 52 weeks, shares have ranged from $4.80 to $27.25.

China Architectural Engineering, Inc. (AMEX: RCH) shares are jumping in pre-market trading after the construction company announced it was awarded a contract to build the façade of the Hangzhou International Conference Center in Hangzhou, China. Financial details of the contract were not disclosed.

“The Hangzhou International Conference Center project is one of the most exciting projects that China Architectural Engineering has undertaken in recent years. The striking architecture is one reason,” CEO Ken Yi Luo said in a statement. “Another is the prominence of the structure, which will provide a high-profile display of CAE’s capabilities.”

In pre-market trading, RCH shares are up 15.11%, or $1.05, at $8.00. Over the last 52 weeks, shares have ranged from $4.80 to $27.25.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in positive territory this morning as investors pin their hopes on the retail sector.

At 10:26 a.m. ET, the small-cap index had added 8.25 points, or 1.11%, to 748.55. The Dow Jones Industrial Average (INDU) had advanced 88.36 points, or 0.69%, to 12,887.40.

The stock exchange will close at 1 p.m. ET today due to the Thanksgiving Day holiday.

All eyes are on retailers today, the so-called “Black Friday”, when millions of Americans do their holiday shopping and when retailers become profitable for the year.

Black Friday is traditionally one of the busiest shopping days of the year, when stores open earlier than usual and handle an increased number of holiday shoppers looking for bargains. Retailers nationwide are introducing discounts and other strategies to get Americans to spend despite high energy prices and lower house prices that have combined to negatively affect consumer spending.

The bulls are hoping to see strong retail sales.

In other economic news, former U.S. Federal Reserve Chairman Alan Greenspan said today that U.S. house prices have not yet hit their low point. Speaking to an audience in the Norwegian capital of Oslo, Greenspan pointed to the large number unsold homes and said that the decline in house prices in unprecedented.

China Architectural Engineering, Inc. (AMEX: RCH), which specializes in the design, engineering, fabrication and installation of high-end curtain wall systems, this morning reported surging net income and revenues for its third quarter.

For the three months ended Sept. 30, the Chinese company recorded net income of $3.1 million, or $0.06 per fully diluted share, up 50% on a per-share basis from $1.5 million, or $0.04 per fully diluted share, in the third quarter of 2006. No analyst estimates were available.

Revenues for the third quarter totaled a record $27.1 million, up 90% from $14.2 million in the third quarter of 2006. No analyst estimates were available.

Shares of China Architectural Engineering (RCH) gained $0.62, or 5.97%, to $11 in pre-market trading. Shares of the small cap have been trading in the range of $4.80 to $27.25 for the past 52 weeks. 

The Russell 2000 (NYSE: IWM) recovered from early losses and posted solid gains as a jump in the price of oil lifted energy stocks. The small-cap index added 11.34 points, or 1.43%, to 801.77. The Dow Jones Industrial Average (INDU) advanced 117.54 points, or 0.87%, to 13,660.94.

On a year-to-date basis, the Russell 2000 has increased 1.82%, while the Dow has added 9.51% and the S&P 500 has gained 7.32%.

The price of oil jumped $3.01 to $96.99 a barrel today on news the U.S. Energy Information Administration forecasted that world oil demand growth in the next two quarters will be higher than it previously estimated and a shutdown in production in the North Sea due to expectations of stormy weather.

That led to a rise in shares of energy companies, helping to lift sagging stocks.

Futures were pointing up this morning on news that Citigroup Inc. (NYSE: C) has hired an expert to manage its $43 billion subprime mortgage portfolio and a raised price target for Internet giant Google Inc. (Nasdaq: GOOG).

The indices opened with a rise, but the bulls lost their footing following news that Redbook Research, a publisher of statistics on the U.S. retail market, reported a 0.4% drop in U.S. chain store sales in the final week of October. With consumption comprising about 70% of gross domestic product, a slowdown could spell trouble for the economy.

DivX, Inc. (Nasdaq: DIVX), Chesapeake Corp. (NYSE: CSK) and Valassis Communications, Inc. (NYSE: VCI) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Gevity HR, Inc. (Nasdaq: GVHR), Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX) and Glu Mobile Inc. (Nasdaq: GLUU) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM) and Dow lost big today as news of disappointing earnings and residual credit fears scared investors. The small-cap index suffered the biggest loss of the major U.S. indices, falling 26.24 points, or 3.18%, to 798.79. The Dow Jones Industrial Average (INDU) retreated for the fifth time this week, letting go 366.94 points, or 2.54%, to 13,522.02.

On a year-to-date basis, the Russell 2000 has increased 1.44%, while the Dow has added 8.34%.

The Russell 2000 futures were flat before the start of trading but the index opened in negative territory on news that Charlotte, N.C.-based Wachovia Corp. (Nasdaq: WB), the fourth largest U.S. bank, reported a 10% decline in its third-quarter profit due to difficult credit market conditions.

The bank also said that that it recorded a provision for credit losses of $408 million, about four times the level during the same three months of 2006.

The news came as an unpleasant reminder that the turmoil in the subprime mortgage sector, which peaked during summer months, is still relevant and capable of spreading shockwaves throughout the financial sector.

The subprime mortgage sector started bleeding earlier this year after U.S. housing prices went into reverse in the second half of 2006. The ongoing housing recession has been identified by observers as the biggest risk to the economy.

Triad Guaranty Inc. (Nasdaq: TGIC), Nanophase Technologies Corp. (Nasdaq: NANX) and Isramco, Inc. (Nasdaq: ISRL) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers: