Tag - RUS

Small Caps making up the Russell 2000 are up 3.76% as of reporting at 1:30 P.M. Eastern today. This leads the Dow Jones Industrials, up 2.85%, and the Nasdaq, up 2.62%.  

Leading small cap gainers today include U-Store-It Trust (NYSE:YSI), up 19.6%, which owns and operators self storage facilities in the United States on news of its establishment of a self storage network to include the company owned 386 facilities as well as 150 locations run with third-party partners, and plans for 250 more in the works to join the network.  

Other small cap leaders include MarineMax (NYSE:HZO) up 22.64%; American Axle (NYSE:AXL) up 22.06%; Russ Berrie & Co (NYSE:RUS) up 19.6%, Celldex Therapeutics (Nasdaq:CLDX), up 32.1%; Green Plains Renewable Energy (Nasdaq:GPRE), up 32.7%.  

Readers from Friday's edition will recall that GPRE was a market leader before the weekend as well. It closed on Friday at $4.40 after flirting with the $4.50 mark having opened at $3.41 in the morning. In Monday's open GPRE gapped up to start at $5.00 and as of press time is at $5.84, up 32.7% for the day. 

Since the opening bell after Memorial Day, GPRE is up 107%. GPRE produces, distributes, and markets ethanol and related products in the United States. GPRE was founded in Omaha, Nebraska in 2006. GPRE recently purchased two ethanol plants previously owned by VeraSun Energy.  

*****Both the Nasdaq and the S&P 500 are hitting new recovery rally highs today. Part of the reason for today's strength is the better than expected construction numbers released this morning.  

The 0.8% gain in construction spending for April was the biggest gain in nearly a year. And it was far better than economists' expectations of a 1.5% drop.  
This is how it will be during an economic recovery. There will be wild swings in data. Don't be surprised if construction contracts for May, and then picks up in June. Or vice versa. It really could go either way. And that won't necessarily be bad news.  
Of course, it would be great to see the numbers continue to steadily improve. But that's not the way it works when an economy is recovering from the type of shocks the U.S. economy has received.  

*****General Motors (NYSE:GM) ended the suspense. As expected, it filed for bankruptcy protection this morning. It's the 4th largest bankruptcy filing in US history. GM has $82 billion in assets and $172 billion in debt.  

GM stock is up +20% in the early going today. I want to know why. My guess is that shorts are covering their positions. Still, I don't know why. It's expected that GM common stock will be cancelled as part of the bankruptcy proceedings.

That would mean that shorts don't have to cover their position. However, shorts may continue to incur borrowing fees from the shares they have sold. In order to be completely free of the trade, maybe covering is the way to go.  

*****I've read that GM may resume trading as a new public company in 6-12 months. I don't see why it should take that long. A motivated bankruptcy judge ought to be able to deal with GMs debt faster than that.  

But I will say that, depending on the terms of the bankruptcy, GM stock should be a good buy when it comes public again. GM will be stripped of one of its major stumbling blocks - pension benefits.  

It's estimated that pension benefits add $1,500 in expenses for GM on each car it builds. Obviously, in today's competitive environment, that's insurmountable.  
However, once these costs are gone, and GM can operate with leaner margins, the stock could be a good buy.  

*****SmallCapInvestor PRO readers are enjoying their second +100% gain this year. The stock is Genco Shipping (NYSE:GNK) and it was recommended on April 9 at $14.20 a share. Please do not by the stock now. We will be taking our profits on it in the near future.  

We're holding our other triple digit winner. This domestic oil and gas stock is up +130%. But the strength in oil prices means that there should be more gains coming. Look to this sector to continue providing winning small caps in the months to come. 
I'm getting ready to increase our exposure to China in SmallCapInvestor PRO. The two Chinese stocks in the portfolio now are up, and China is the best growth story in the world right now (indeed, some analysts and economists are calling for China, not the U.S., to lead us to recovery). For more on SmallCapInvestor PRO, please please click HERE.
*****Graham Corp (AMEX:GHM) reported earnings on Friday. And they were not very good. The stock has lost nearly $3 over the past few days. That's plenty for me. If you bought Graham on my recommendation in Daily Profit, it is now time to take your profits. I hope you did well.  

The Russell 2000 (NYSE:IWM) dove again Tuesday, closing down over 2% and rejecting a brief afternoon bounce into positive territory. Today’s small-cap gainers are Optimer Pharmaceuticals (Nasdaq:OPTR), Clear Channel Outdoor Holdings (NYSE:CCO) and Hospitality Properties Trust (NYSE:HPT).

Other Market Watch highlights today included:

• For the year, small caps are off 37%, while the Dow is down 34% and the S&P 500 is down 39%.
• Energy, insurance, retail, technology and financial stocks were major sources of weakness today.
• Homebuilders, drug stocks, agriculture products and home entertainment software companies lagged the overall market downdraft.
• Russia is the second-largest oil producer in the world and in addition to the commodity woes right now, had to raise interest rates today to fight off capital outflow and inflation.
• Crude oil prices tumbled to 20-month lows, slipping below $59 a barrel as concerns about demand continue to chip away at commodity valuation.
• Data from China overnight showed that import growth was slowing and that inflation was at a 17-month low.
• The slide in physical markets gained momentum as the dollar rallied against the euro, with the greenback up 1.5% as the day progressed.
• The Commodity Research Bureau Index of 19 commodity markets tumbled some 3%, sinking to the lowest point since December 2003.

Small Cap Gainers:

• Optimer Pharmaceuticals Inc. jumped 87% on news that the firm’s antibiotic drug met late-stage trial goals. See (Nasdaq:OPTR).
• Clear Channel Outdoor Holdings closed up 27% despite being downgraded . . .

Small-cap stocks remained in negative territory into mid-session, pressured by worries about corporate profitability in a sluggish economic environment around the world. Today’s small-cap gainers are Russ Berrie (NYSE:RUS), Clear Channel Outdoor  (NYSE:CCO) and Hospitality Properties Trust (NYSE:HPT).

Other Market Watch highlights today included:

• As for the insurers, analysts at Goldman Sachs lowered ratings on the group and the S&P Insurance Index was down 6% at midday.  
• Real estate services are getting hammered today, as are tire, rubber and automobile manufacturers, wireless telecoms and insurance stocks.  
• The only area showing decent strength is agriculture products.
• Crude oil prices tumbled to 20-month lows today, slipping below $59 a barrel, which kept energy and commodity stocks on the defensive.  
• Credit futures are near contract highs, with European bond futures making contract highs today, which shows that money flow is into credit instruments, not equities.  

Small Cap Gainers:

• Russ Berrie reports Q3 results; shares pop 30%. See (NYSE:RUS).  
• Clear Channel Outdoor Holdings up 25% despite being downgraded to "market perform." See (NYSE:CCO).  
• Hospitality Properties Trust reported solid third-quarter earnings and rose 16%. See (NYSE:HPT).
• MGIC Investment Corp. up 12% in lower-than-average volume. See (NYSE:MTG).  
• Hill International up 9% after being honored as "Construction Management Firm of the Year" by the Developers & Builders Alliance. See (NYSE:HIL).  

Small Cap Losers:

• Bidz.com Inc. shed 35% after the online retailer slashed the full-year outlook, a numbing concept into the key holiday shopping season. See (Nasdaq:BIDZ).  
• Stillwater Mining warns it will not break even on PGM mining without operational changes; shares dive 30%. See (NYSE:SWC).  
• PHH Corp. on Monday reported a wider Q3 loss; shares still reeling, down 25% today. See (NYSE:PHH).  
• Strategic Hotels reports net loss last week, shares down 9% today. See (NYSE:BEE).  

Small-cap stocks fell hard Tuesday, as the combination of credit worries, high inflation and a slumping housing market whipped up the perfect bearish storm. The Russell 2000 (NYSE:IWM) closed down 11.94, or 1.61%, at 730.03, while the Dow was off 1.14% and the S&P 500 was down 0.93%. For the year, the Russell is now down 4.69%, backing off quickly after flirting with a test of positive yearly territory late last week. The Dow is down 14.4% for 2008 and the S&P 500 is off 13.7%.

Financial shares remained at the center of the seller hurricane, extending the rout that started Monday as talk of more debt write-downs started making the rounds. The fresh target today was Lehman Brothers Holdings Inc. (NYSE:LEH), which crashed 13% after analysts predicted $4 billion more in bad mortgage debt was ready to rolled off the books this quarter. The shudder of renewed bad debt fear swept through financial stocks, with the Financial Select Sector SPDR Fund tumbling 2.9% and the PHLX KBW Banking Index sinking 3.4% Major U.S. banks like Citigroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) were hit by the concerns, slipping 2.5% and 4.1%, respectively.

And while the credit crisis was back in play again today, the market also had to come to grips with yet another bad inflation economic report. Last week saw investors essentially shrug off scary inflation numbers on the Consumer Price Index release, dismissing the data as less disturbing because it didn’t reflect the recent collapse in crude oil prices. Then today’s Producer Price Index (PPI) report not only showed headline inflation at 27 year highs, but also reflected “core” inflation, which excludes food and energy prices, at 17-year highs. The realization that the inflation story isn’t just about $4-a-gallon gasoline pump prices and higher grocery bills is a sobering thought for the market.

Just to finish off the bearish news, July housing starts came in below the forecast, with the unit rate at the lowest point since 1991. So, PPI is at 27-year highs, core inflation is at 17-year highs and housing starts are at 17-year lows. Combined, it’s not a pretty picture, and it also handcuffs monetary policy makers who have to walk a tightrope between battling inflation versus coddling economic health.

Broad market sectors on the decline Tuesday included motorcycle manufacturers, real estate management firms, department stores, consumer finance, casinos, . . .

Innovative Solutions and Support Inc. (Nasdaq:ISSC), Russ Berrie & Co Inc. (Nasdaq:RUS) and Concurrent Computer Corp. (Nasdaq:CCUR) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.    

Also included among the results: South Finl Group (Nasdaq:TSFG), Berkshire Bancorp Inc. (Nasdaq:BERK), Beazer Homes USA Inc. (Nasdaq:BZH), LandAmerica Financial Group Inc. (Nasdaq:LFG), Clean Diesel Technologies (Nasdaq:CDTI) and Beazer Homes USA Inc. (Nasdaq:BZH).      

Here are the biggest percentage losers among small caps:   

Shares of Russ Berrie and Company Inc. (NYSE:RUS) fell 15% this morning after the firm reported at 8:45 a.m. a net loss of $12.1 million, or $0.57 per share, for the second quarter ended June 30.

The results compared with earnings of $365,000, or $0.02 per share, in last year’s second quarter.

Although second-quarter sales increased 24% to $87.7 million, the results included several unusual pre-tax charges totaling $10.4 million.

No major analysts follow the Oakland, N.J.-based infant and juvenile products company.

Russ Berrie Company CEO Bruce Crain noted that the firm’s gift division’s results reflected “continuing weak industry trends.”

This morning, the Russ Berrie is at $8.39, down $1.49 from Monday’s close. The stock has traded as low as $6.58 and as high as $18.48 in the past year.

For detailed price information and news stories on Russ Berrie, click RUS.

Small-cap stocks went into a tailspin on the opening as runaway inflation, weak housing starts and the never-ending credit crunch saga cast a bearish pall over the market. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.53, or 1.15%, at 733.44.

The inflation horizon became more troubling this morning when the Producer Price Index report came out at 1.2%, which was way ahead of the forecast for a rise of 0.6%. The headline figure marked the largest year-over-year rise in 27 years. Recently, investors have tried to shrug off inflation worries, saying that the data is back-dated and that the biggest inflation ingredient — energy — has been on the decline in late July and in August. However, today’s “core” rate of inflation, which excludes food and energy prices, was up a stunning 0.7%, which was far beyond the forecast for a rise of 0.2%. The year-over-year rise in the core rate was the fastest since 1991. Although you can argue that tracking inflation without including energy and food prices is somewhat silly, one thing the core rate shows us today is that inflation is creeping into other areas than just at the gas pump and in the grocery sack.

Rubbing a little salt in the wound was the Housing Starts report, which came out at the same time as the PPI and which also was a disappointment. The headline for housing starts was down 11.0%, slack compared with the forecast for a decline of 9.9%. The rate of July housing starts was at 965,000 units, which marked the lowest level since March 1991. So, housing starts are at 17-year lows and inflation is at 27-year lows. With many market watchers saying that a recovery in the housing market is a necessary start to a recovery in the financial/credit crisis, the numbers today did nothing to help further the bullish argument.

“With sales still soft, and with lending standards tighter, single family housing starts will contract even further,” Steven Wood, chief economist with Insight Economics, said in an email. “Housing’s contribution to economic growth will be . . .

Russ Berrie & Co. (NYSE:RUS) announced after Tuesday’s close that it plans to buy two infant and juvenile businesses for $63 million. The two companies – infant furniture maker LaJobi Inc. and infant bedding and accessory maker CoCaLo Inc. – are privately held.

Also after Tuesday’s close, Russ Berrie reported that it swung to a fourth-quarter net loss of $8.3 million, or $0.39 per share, from earnings of $1.3 million, or $0.06 per share, a year earlier. Quarterly revenue rose 14% to $84.5 million from $83.9 million during the same period of 2006.

In afternoon trading, RUS shares are down 3.26%, or $0.47, at $13.93. For detailed price information and recent news stories about Russ Berrie & Co., click RUS.

Russ Berrie & Co. (NYSE: RUS) CEO Andy Gatto said the Oakland, N.J.-based maker and marketer of gift and kids’ products expects to deliver much of its $36 million backlog during the fourth quarter. The chief executive made the comments during a midday conference call.

“We’ll build back up with new orders early in 2008,” Gatto said.

The company remains confident “retail shelves will be clear as we enter 2008,” he said.

Before the opening, Russ Berrie reported third-quarter sales of $100.9 million, up 29% from $78 million a year earlier. The firm’s quarterly profit totaled $14.3 million, or $0.67 per share, compared with $0.3 million, or $0.01 per share, during the same period of 2006.

Strong demand for the company’s Yomiko-brand plush products and the rollout of its Shining Star product line helped fuel sales.

During the three months ended Sept. 30, Russ Berrie’s selling, general and administrative expenses increased to $30.9 million, up 16% from $26.7 million last year. The firm’s cost of sales rose 18% to $56.8 million, from $48.1 million a year earlier.

The company’s gift segment contributed pre-tax income of $6.1 million, compared with a loss of $3.9 million during the prior-year quarter. Russ Berrie’s infant and juvenile segment contributed pre-tax income of $6.4 million, from $5.8 million a year earlier.

“Though we are ever mindful of the challenging consumer and economic issues impacting the retail marketplace, we continue to receive feedback suggesting that the new products in both our gift and infant segments are receiving outstanding response from both retailers and consumers,” Gatto said.

In afternoon trading, RUS shares are up 14.69%, or $2.25, at $17.57. Over the last 52 weeks, shares have ranged from $13.34 to $20.08.

It’s going to take more than an unexpected bear hug to cage Russ Berrie & Company, Inc. (NYSE: RUS) -- the venerable maker of collectible plush lions and tigers and bears, oh my -- and other gift items that keep kids of all ages entertained.

Shares of Russ Berrie have risen 35% in the past three months, but can small-cap investors continue to find value if they jump in now?

The stock established the first of a string of 52-week highs on June 6, after the Oakland, N.J., company said that it had received an unsolicited $18-a-share takeover offer that valued the company at about $380 million.

But the Russ Berrie board thought otherwise, and the company said in a statement that the directors had “determined that this proposal undervalues the company.” The company noted that before receiving the bid, it already was looking into the possible sale of its struggling gift division, and had received some interest “from several prospective acquirers.” It also said that it had hired Sagent Advisors to explore its options, which it identified as selling parts of the company, selling the entire company, or making acquisitions to grow, in order to better compete with such giants as Hasbro, Inc. (NYSE: HAS) and Mattel, Inc. (NYSE: MAT).

The offer did nothing to change the view of analyst Daniel Scalzi of Matrix USA, who has a “strong sell” rating on the company, and he questioned the wisdom of rejecting that price, a tiny premium of about 1.6% of the previous day’s closing share price. He told The Record newspaper in Hackensack, N.J.: “Eighteen bucks a share? They should have taken it.” At TheStreet.com Ratings, however, the stock was upgraded from sell to hold.