Tag - SOL

Stocks are trading higher as of press time, 2:00 P.M. Eastern Time. The Dow was up 52 points at 9,331, the Nasdaq was up 15 points to 1,984, and the S&P 500 had pushed over 1,000 to 1,005, up 9 points.

The Russell 2000, the composite index of leading small-cap stocks, was at 565, up nearly 4 points.

Advancers lead decliners on all three major U.S. exchanges by a margin of 2 to 1 for the NYSE and AMEX and 5 to 4 on the Nasdaq.

Small-cap price gainers with over 1 million shares traded include Anika Therapeutics (Nasdaq:ANIK), up 36%; Reddy Ice Holdings (NYSE:FRZ), up 26%; and Renesola Limited (NYSE:SOL), up 18%.

*****"The question is not whether the dollar will weaken over time, but how it will weaken…"

That's what the CEO of bond giant PIMCO, Mohamed El-Erian, had to say as central bankers from around the world gather in Jackson Hole, Wyoming. They'll review the various strategies implemented to stave off the global financial crisis and discuss what they'll do as the world economy recovers.

In Ben Bernanke's case, we probably already know what he will, or won't, do. 

A student of the Great Depression, Bernanke understands how damaging a deflationary spiral can be. Spending slows, unemployment rises, businesses fail. And like a negative feedback loop, failing business leads to even higher unemployment and less spending.

Quite simply, Bernanke believes that, between inflation and deflation, inflation is easier to fight. So we should all expect Bernanke to allow, even invite, inflation to help rescue the U.S. economy.

*****Make no mistake, deflation is still a threat. So long as unemployment is on the rise, spending and prices will likely decline. And today's surprise jump in new unemployment claims should serve notice that, despite recent improvements in some unemployment numbers, the trend for unemployment numbers is still up.

The housing market has shown some improvement recently. But what will happen when the summer home-buying season ends? Inventories will rise, and any individual homeowners wanting to sell will be competing against fire sale foreclosure properties. Who's going to buy it seems likely that prices will be lower next spring? It's the sickening reverse of what we saw earlier this decade where people bid up home prices because they knew they needed to buy now before prices go higher. If they now believe prices will be lower in the future and they're not under some pressure to move, then they'll wait. And this will further drive down housing prices and will definitely continue to affect new home construction which will affect employment (negatively), and, well, you get the cycle.

*****It's widely believed that a weaker U.S. dollar will ultimately be good for the U.S. economy. That's because a weaker dollar makes U.S. exports more competitive. And the logic goes that more competitive exports could spark a revitalization of American manufacturing sector and put people back to work.

Of course, any such manufacturing renaissance will be funded by the deterioration of our wealth. In essence, the weak dollar will be a silent tax, a massive redistribution of wealth from the middle and upper class to the manufacturing sector.

What's more, the decline in purchasing power of the dollar is virtually unnoticeable. Unless of course, you travel overseas. The euro, currently fetching $1.42, could trade for $1.60 before the end of the year. It was as low as $0.90 earlier this decade.

No one will argue that a stronger manufacturing sector will be ultimately good for America. But it comes at a cost. The global playing field will level. And that means your investments will be the key to staying ahead of the game.

*****So whether you choose to subscribe to one of my advisory services and discover how we're beating the market and inflation investing in commodities or small cap stocks, or you prefer to stay with a trusted advisor or manage your own accounts, it is absolutely critical for your financial well-being that you remain diligent and keep the prevailing economic trends in mind when investing. While you can sometimes go against a trend and occasionally make a quick buck, the typical individual investor needs to follow the trends for long term portfolio profitability.

Until tomorrow,

Ian Wyatt
Editor
Daily Profit

P.S. Speaking of trends, have you been following what's happening China? After an enormous run-up since last fall Chinese stocks are pulling back. If you missed the last run-up this is you second chance to get it. I've recently added three high quality long term China-based holdings to my SmallCapInvestor.com PRO portfolio. To find out more about them and get the full research report CLICK HERE.

P.P.S. My book The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks is coming out on September 14 - visit www.smallcapbook.com to learn more. You can also follow me on http://twitter.com/ianwyatt 

Ian Wyatt is the Chief Investment Strategist of SmallCapInvestor.com and author of The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks. You can learn more about his book and receive small-cap stock picks at www.smallcapbook.com.

Universal Forest Products Inc.(Nasdaq:UFPI), Infinity Pharmaceuticals Inc. (Nasdaq:INFI) and Renesola (Nasdaq:SOL) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: East West Bancorp Inc.(Nasdaq:EWBC), CVB Financial Corp. (Nasdaq:CVBF), Patriot Coal Corp. (Nasdaq:PCX), EnerNOC Inc. (Nasdaq:ENOC), Esterline Technologies Corp.(Nasdaq:ESL) and Cascade Corp. (Nasdaq:CASC).

Tree.com Inc. (Nasdaq:TREE), Renesola(Nasdaq:SOL) and Benihana National Corp. (Nasdaq:BNHNA) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Gainsco Inc. (Nasdaq:GAN), Starlims Technologies Ltd. (Nasdaq:LIMS), Transcept Pharmaceuticals Inc. (Nasdaq:TSPT), Fuqi International Inc. (Nasdaq:FUQI), Genesee & Wyoming Inc. (Nasdaq:GWR) and ATP Oil & Gas Corporation (Nasdaq:ATPG).

Opening volume was higher in this morning's session with all the major indices, except the Dow, trading in the negative. As of press time at 10:40 A.M. Eastern the Dow is trading just positive at 8,768.67 while the Nasdaq and S&P 500 were down 0.10% and 0.04%, respectively.

Leading small cap gainers today was Real Goods Solar (Nasdaq:RSOL) up 42% on news of a $30 million contract to install a solar power program for the Freemont Union School District in California. RSOL is a commercial solar energy integrator in the California and Colorado markets.

Other gainers in this morning's session include Cadiz (Nasdaq:CDZI) up 40%; American Woodmark (Nasdaq:AMWD) up 18.9% on posting a surprise Q4 profit; and Chinese solar firm Renesola (NYSE:SOL) up 16.9%.

Small cap decliners include United PanAm Financial (Nasdaq:UPFC) down $1.02 to $2.96 for a loss of 26.1% after a notice of delisting from the Nasdaq; Hawkins (Nasdaq:HWKN) down 14.1%; Exide Technologies (Nasdaq:XIDE) down 16.2%.

No sooner do I say that the news cycle is turning negative, we get some significant upgrades in the financial sector. Goldman Sachs (NYSE:GS) got an "outperform" rating and rose 5.2%.

RBC Capital Markets called KeyCorp (NYSE:KEY) a "top pick" and the shares ramped 20%. And Fifth Third Bancorp (Nasdaq:FITB) rose 7% after it reported that it has filled the capital shortfall identified during the Treasury's "stress tests."

At least for a day, the financials re-took their leadership for the markets. Though it should be noted that the Financials ETF (AMEX:XLF) has not made a new high, and the financials are sharing the stage with energy stocks.

*****Money managers report that a lot of cash is sitting in the sidelines. Both individual and institutional investors have been slow to get back into the stock market.

Of course, that's exactly the scenario that can keep stocks moving higher. At least, so long as the economic data doesn't take a turn for the worse.

*****Citigroup reported in a research note that put options volume is picking up and so is the Volatility Index, the VIX. Investors buy put options to profit form downside moves for stock prices. Institutional investors protect gains in large portfolios with put options.

The VIX measures the cost of put options. When it rises, it means that investors see increasing risk in the stock market. Citigroup's chief technical analyst, Tom Fitzpatrick, believes the rise in the VIX is showing "strong warning signals" for the rally.

*****Bulls vs. Bears, fear vs. greed - that's what it always comes down to. Will the analysts who see better times ahead for the banks win out? Or will those who see "warning signs" be right? As always, we'll see…

*****The gains just keep coming for SmallCapInvestor PRO stocks. Since March, we've seen a 152% gain from our top oil stock, and we had Genco Shipping (NYSE:GNK) hit triple-digit territory before recent weakness took it below that threshold. 

Now, one of our top China stocks is knocking on the triple-digit door.  The obvious catalyst for this stock will is that it moves off the over-the-counter market and starts trading on the Nasdaq as soon as today. I expect the increased exposure to help drive the share prices higher. 

This stock blew through our conservative $8 price target. The new listing and rising prices for its product will have a positive influence on shares. Our target price is being raised to $14 per share. That's about 40% higher from current prices. 

I am very bullish on Chinese stocks. And SmallCapInvestor PRO now has 3 Chinese stocks in the portfolio. In fact, we just added one on Wednesday. I've put all three stocks in a brand new Special Report called "Going for Growth: 3 Top Chinese Stocks to Buy NOW." Find out how to get your copy HERE.

Cadiz Inc. (Nasdaq:CDZI), Jackson Hewitt Tax Service Inc. (Nasdaq:JTX) and Palomar Medical Technologies Inc. (Nasdaq:PMTI) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: American Woodmark Corp. (Nasdaq:AMWD), Greene County Bancorp (Nasdaq:GCBC), Kenexa Corp. (Nasdaq:KNXA), MidWestOne Financial Group Inc. (Nasdaq:MOFG) and Zoltek Companies Inc. (Nasdaq:ZOLT).

Other Market Watch highlights today included:

• Stock index futures were in the midst of a hard bounce off the lows ahead of PPI, and pulled back slightly after the inflation headlines.
• The PPI report headline figure came in at minus 2.8%, which was a much bigger decline than the forecast of 1.8%.  
• Bank stocks, mining companies and oil services shares were soft overseas, flashing a show of weakness ahead of inflation data in the U.S. 
• Small caps to open solidly lower, pressured by slumping equity markets around the world overnight.

Small Cap Gainers:

• IDM Pharma receives recommendation for approval of Mifamurtide in Europe; shares pop 80% in pre-market. See (Nasdaq:IDMI).
• Diamond Foods, Inc. is up 3.23% in after hours after it was announced late Monday that the company would replace Flowers Foods in the S&P SmallCap 600. See (Nasdaq:DMND).  

Small Cap Losers:

• DivX sues Yahoo for ad deal pull out. Shares of DivX are down nearly 20% in pre-market. See (Nasdaq:DIVX).  
• Central European Media Enterprises down another 18.6% in pre-market after closing at a multi-year low on Monday. See (Nasdaq:CETV).  
• ReneSola reaffirms below estimates, shares dive over 17% in pre-market. See (NYSE:SOL).  
• Sigma Designs is down 8% in pre-market after revising its Q3 revenue outlook lower. See (Nasdaq:SIGM).  
• GM slipped 1% in pre-market after the White House opposed a plan pushed by Senate Dems for a $25B bailout of the nation’s auto industry. See (NYSE:GM).  

Renesola ADR (Nasdaq:SOL), Protherics Depository Receipt (Nasdaq:PTIL) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Paragon Shipping Inc. (Nasdaq:PRGN), Nobility Homes (Nasdaq:NOBH), Trina Solar Ltd. (Nasdaq:TSL), Insulet Corp. (Nasdaq:PODD), Safe Bulkers Inc. (Nasdaq:SB) and Mesa Laboratories Inc. (Nasdaq:MLAB).

Here are the biggest percentage gainers among small caps:

www.gtsolar.com
(Nasdaq:SOLR)
Scheduled for week of July 21
$500 million estimated proceeds
$2432 million estimated post-money valuation

I’m starting to think that solar power deals are on par with special-purpose acquisition companies (or SPACs) and dry bulk shipping this year. After all, there have been two others to date: Real Goods Solar (Nasdaq:RSOL), which raised $55 million in May, and ReneSola (NYSE:SOL), which brought in $130 million in January. In a year with only 35 IPOs, that makes solar power a bona fide hot spot.

GT Solar makes equipment used to fabricate photovoltaic cells, which collect sunlight and convert it into electricity. These are big machines needed to produce solar cells but sold to only a handful of buyers worldwide. For the fiscal year ended March 31, 2008, 62% of the company’s revenue came from just one customer. In years past, the customer base has been more diversified, but just barely. In fiscal 2007, for example, three customers contributed 70% of revenue. No matter how big the solar power industry becomes, GT Solar will always face a concentrated customer base. A good analogy is semiconductors, which are in everything these days but are fabricated by just a few companies.

The company made $36.1 million in net income on $244.1 million in revenue for the March 31, 2008 fiscal year, its first profit ever. The year before, it had a net loss of $18.4 million on revenue of $60.1 million. The outlook for fiscal 2009 is good; the company has an order backlog of about $1.3 billion and deferred revenue from equipment shipped but not yet billed of $164.2 million. Profits should stay . . .

www.transoma.com
Nasdaq: TSMA
Scheduled for the week of Feb. 4
$63 million estimated proceeds
$289.6 million estimated post-money valuation

Transoma Medical makes implantable monitoring devices used in biomedical research, often to monitor how a drug affects laboratory animals. It is branching out into a bigger market involving bigger animals: implantable devices monitoring human cardiac patients. The Sleuth Implantable ECG Monitoring System, which takes about 15 minutes for a doctor to implant, is used to monitor such factors as blood pressure and heart rate. This helps doctors know what’s really going on with their patients, including how well they are complying with therapy. In October 2007, Transoma received FDA approval to market the device to patients with unexplained cardiac arrhythmia or syncope. Given that 79 million people in the United States suffer from cardiac diseases, the company estimates that the monitoring device market could be $2.1 billion. There is competition; Medtronic, Inc. (NYSE: MDT) has a similar product.

The company has been around since 1984, and it has an accumulated shareholder’s equity deficit of $34.9 million because of years of losses. For the year ended June 30, 2007, Transoma booked revenues of $37.2 million and a loss of $9.1 million. The company is counting on losses to subside as the Sleuth system is accepted by the market. The firm is backed by Polaris Ventures and Canaan Partners, which will hold 34.64% of the stock after the offering and which are not selling any shares. The company’s co-founder and CEO, Brian Brockaway, is planning to sell 96,000 of the 2.1 million shares that he holds, which is less than half of 1%. He will control 11.18% of the company shares after the offering.