Tag - RCKY

Small caps closed up nearly 2%, embracing the Fed’s rate cut, a thaw in credit markets and a bounce in commodity-tied stocks. Today’s small-cap gainers are Savient Pharmaceuticals (Nasdaq:SVNT), Savvis (Nasdaq:SVVS) and Hercules Offshore (Nasdaq:HERO).

Other Market Watch highlights today included:

• The rate cut by the Fed coincides with global easing; just last night, central bank officials in China cut rates by 0.27% and European leaders hinted that further rate cuts are possible. 
• It’s possible that the bulls were corralled a little bit today, leery to take a big bullish stand ahead of Thursday’s GDP report.
• Commodities were a key part of the story today, which may explain some of the relative strength in small caps, which have shown a tendency to more closely track commodity trends in recent weeks.
• Crude oil prices jumped some 9%, or more than $5 a barrel, bolstered by oversold conditions and a slide in the U.S. dollar, which tumbled some 1.4% against the euro.
• Copper has soared some 14%, which is particularly interesting because copper is often seen as a proxy for economic activity around the globe. Copper has collapsed in recent weeks, but a stabilization in that market would be a positive sign for the global economy.

Small Cap Gainers:

• BioMimetic Therapeutics reports promising clinical results using injectable bone graft. Shares close up 21%. See (Nasdaq:BMTI).  
• Tessera Technologies shares surged 30% after arbitration ruling. See (Nasdaq:TSRA).  
• Savient Pharmaceuticals announces data in treatment-failure gout . . .

The Russell 2000 (NYSE:IWM) is posting a solid gain on news that a regional manufacturing index came in better than expected.

At 12:22 a.m. ET, the small-cap index was up 9.37 points, or 1.41%, to 673.50. The Dow Jones Industrial Average (INDU) had added 121.38 points, or 1.00%, to 12,221.04.

The Philadelphia Federal Reserve reported after the start of trading that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The numbers show continued weakness and represent the longest period of contraction in five years. The percentage of companies expecting to see growth over the next six months was almost the same as the percentage of those expecting a contraction.

With investors bullish, shares of footwear companies are leading the industry group winners.

Nelsonville, Ohio-based Rocky Brands Inc. (Nasdaq:RCKY), which makes shoes in the outdoor, work, duty and western styles, is seeing its stock rise 8%. Similarly, shares of athletic footwear maker K-Swiss Inc. (Nasdaq:KSWS) are also in the green.

Brown Shoe Company, Inc. (NYSE:BWS) and men’s footwear distributor Weyco Group Inc. (Nasdaq:WEYS) are also posting gains.

The Russell 2000 (NYSE: IWM) is down on news that some small banks could go bankrupt. At 2:04 p.m. ET, the small-cap index had declined 10.23 points, or 1.43%, to 706.21. The Dow Jones Industrial Average (INDU) was off 124.80 points, or 0.98%, to 12,569.48.

Small regional banks that have invested in real estate could fail, according to U.S. Federal Reserve chairman Ben Bernanke. The comments were made in front of the Senate Banking Committee and helped stocks extend their losses.

Larger banks are in better shape and should not have serious problems, the Fed chief explained. Bernanke also said that he does not think the United States will experience “stagflation,” a period of inflation combined with slow or no economic growth.

The Dow and the Russell 2000 have been in the red since the start of trading. Among the small-cap losers is footwear maker Rocky Brands Inc. (Nasdaq: RCKY).

The Nelsonville, Ohio-based company reported after the close on Wednesday that its fourth-quarter net loss widened to $23.6 million, or $4.31 per share, compared with a net loss of $0.08 million or $0.01 per share a year earlier.

“Revenues came in below our expectations, which we attribute to low demand for the company’s outdoor and western footwear products,” wrote David Meyer, an analyst with investment bank Brean Murray & Co., in a research note released today. “While the firm’s business continues to struggle a bit, we are maintaining our ‘hold’ rating due to the cheap valuation.”

Ambassadors Group, Inc. (Nasdaq: EPAX), Rocky Brands, Inc. (Nasdaq: RCKY) and hi/fn, inc. (Nasdaq: HIFN) 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:

Investors are sending shares of Rocky Brands, Inc. (Nasdaq: RCKY) spiraling downward to a new 52 low today after the footwear manufacturer reported disappointing earnings for its third quarter and downwardly revised earnings for the full fiscal year.

For the three months ended Sept. 30, the Nelsonville, Ohio-based company recorded net income of $1.1 million, or $0.21 per diluted share, compared with net income of $4.2 million or $0.76 per diluted share for the third quarter last year. Three analysts surveyed by Thomson were calling for earnings of $0.91 per share.

Rocky attributed the earnings disappointment to significant pricing pressure and an increase in product costs. As a result, the company’s gross margin was 550 basis points lower than anticipated.

Additionally, Rocky said it decided to increase its retail operating expenses to capitalize on “near-term prospects created by the bankruptcy of a key competitor.”

Net sales increased 5.4% to $82.3 million to clock inline with the consensus of two analysts polled by Thomson of $81.95 million. The shoe maker booked sales of $78.1 million for the third quarter of 2006. The firm said the increase in sales was primarily driven by a 25% increase in retail revenues, coupled with a slight increase in wholesale sales.

Looking to the full year, Rocky now anticipates higher revenues, but lower earnings.  The company said based on actual third-quarter results and better visibility into the fourth quarter, it now expects net sales for fiscal 2007 to be approximately $280 million, compared with its previous guidance of approximately $277 million. The company predicts earnings per share of approximately $0.30, compared with previous guidance of approximately $1.16. Three analysts surveyed by Thomson were gunning for earnings of $1.07 per share on revenues of $ 280.53 million.

Shares of Rocky Brands (RCKY) tumbled 24.78%, or $2.30, to $6.98 at 11:49 a.m. ET. Shares of Rocky Brands have been trading in the range of $6.72 to $19.23 for the past 52 weeks.

Rocky Brands, Inc. (Nasdaq: RCKY), Wayside Technology Group, Inc. (Nasdaq: WSTG) and Protherics PLC (Nasdaq: PTIL) are the biggest percentage losers in Friday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

Shares of Rocky Brands, Inc. (Nasdaq: RCKY) are plunging today after the shoe maker reported disappointing second quarter.

For the three months ended June 30, Rocky’s net loss widened to $1.4 million, or $0.25 per diluted share, from a net loss of $0.2 million or $0.04 per diluted share in second quarter last year. Three analysts polled by Thomson Financial had anticipated a loss of $0.03 per share.

The Nelsonville, Ohio-based company said the net loss for the second quarter includes a one time non-cash charge of approximately $0.8 million, or $0.09 per diluted share after tax, due to a required write off of prepaid financing costs related to the refinancing of its term loans.

Rocky attributed its second quarter loss to weaker than expected wholesale revenues and an increase in production costs, coupled with an increase in closeouts.

“To put it in perspective, during fiscal year 2006 Rocky revised guidance two times and missed it the third time,” said Brean Murray Carrot & Co. analyst David Meyer. “Coming off a weak quarter investors are worried that the company will go through the same thing again as last year.”

Horsham, Pa.-based Optium Corp.’s (Nasdaq: OPTM) fourth quarter fiscal 2007 outlook fell short of Wall Street’s projections.  The company expects net income to be between $0.08 per share and $0.11 per share, the supplier of high-performance optical subsystems said after Wednesday’s close.  Analysts were looking for earnings of $0.17 per share.  The stock is down $0.13, or 1%, to $15.69.

U.S. stocks are trading just above the flat line after news of a planned buyout in the aluminum sector.  Among small caps, shares of Rocky Brands Inc. (Nasdaq: RCKY) are rising on news of a stronger-than-expected first quarter, while disappointing earnings are hurting Entegris, Inc.’s (Nasdaq: ENTG) stock price.

At 11:28 a.m. ET the Russell 2000 had added 0.64 points, or 0.08 percent, to 833.52.  The Dow Jones Industrial Average was up 33.32 points, or 0.25 percent, to 13,297.94.

These are the biggest percentage gainers among companies with market capitalizations under $500 million: