Tag - RLH

Small-cap stocks edged lower Monday, pulled down by nagging concerns linked to the ongoing credit crunch, which weigh on small-cap financial institutions and by a record high crude oil prices. The Russell 2000 (NYSE:IWM) dipped 8.48, or 1.21%, to 689.66, generating the lowest daily close for the Russell since April 15.

Despite 10-week closing lows, price action today in small caps was relatively sleepy, with the Russell 2000 contained to an eight-handle range, compared with a 20-handle range last Thursday.

When the market opened this morning, equities were alarmed at a new record high in crude oil prices, which rose above $143 dollars a barrel overnight amid tensions between Israel and Iraq. However, crude oil was unable to sustain those new highs and actually dipped briefly into negative territory in the afternoon, leaving a potential bearish topping signal on daily charts that allowed stock market investors a little breathing room. Also on the commodities scene, gold prices pulled back today, and corn futures plunged down the daily trading limit.

Earlier this morning, the Chicago PMI headline figure came in at 49.6, which was a much better showing than the median forecast for a reading of 48. Still, the number was below the 50 contraction line for the fifth consecutive month, which underscores a soft picture in the Midwest manufacturing scene. The Chicago data was just the first of several manufacturing-oriented reports this week, but the big economic report comes Thursday morning with the monthly employment release.

For the first time in quite awhile, the Dow rallied in the face of declines in small-cap stocks. The Dow has been in collapse mode of late, sinking to 2-year lows even though the Russell 2000 was still well above the March 2008 bottom. The Dow benefited today from gains in a couple of oil company shares and from a rise in Wal-Mart (NYSE:WMT), which stands to hold up better than high-end retailers . . .

Alto Palermo SA (Nasdaq:APSA), NDS GROUP PLC (Nasdaq:NNDS) and Red Lion Hotels Corp (Nasdaq:RLH) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: PowerSecure International Inc (Nasdaq:POWR), Rediff.com India Ltd (Nasdaq:REDF), Aceto Corp (Nasdaq:ACET), Stratus Properties Inc (Nasdaq:STRS), GTSI Corp (Nasdaq:GTSI) and E Com Ventures Inc (Nasdaq:ECMV).

Here are the biggest percentage gainers among small caps:

Red Lion Hotels Corporation (NYSE:RLH) on Monday received an unsolicited takeover offer from Columbia Pacific Opportunity Fund Co., pushing shares of Red Lion Hotels up more than 22%. Columbia Pacific is offering $9.50 per share in cash for the
Spokane, Wash.-based Red Lion Hotels. On Monday, the hotel chain was trading at $8.62, up about 22.3% from Friday’s close of $7.05. Red Lion Hotels owns and operates 53 hotels in the U.S. and Canada.

Hospitality and leisure company Red Lion Hotels Corp. (NYSE: RLH) said this morning that it will begin a share repurchase program through which the small cap will purchase up to $10 million of its common stock.

Shares of Red Lion (RLH) were halted in pre-market trading.