Tag - SRVY

The Russell 2000 is sinking on the session, as a grisly personal income report, oil’s assent, and Dell’s disappointing earnings sucked the wind out of Thursday’s equity rally—though on light volume ahead of the holiday weekend.

At 12:26 p.m. ET, the Russell 2000 (NYSE:IWM) was down 9.29, or 1.24%, to 738.58, close to its lows on the session.

The session kicked off to a bad start after the government issued a report stating that personal incomes plunged by the largest amount in three years. Personal incomes slid 0.7%, below expectations for a drop of 0.1%.

Adding insult to injury, consumer spending was squeezed, as the impact of government stimulus checks evaporated and the inflation component of the report (the year-over-year PCE price index) surged to the highest in 17 years. Spending rose 0.2%, compared with a 0.4% decline in July and the 0.6%, uptick in June.

In other economic news, the Michigan sentiment survey clocked in at 63, slightly above the forecast of 62; while the Chicago Purchasing Manager’s Survey topped the forecast at 57.9, compared with the projection of 50. The market rallied off early lows after that stronger-than-expected number, however, the bounce was not sustainable.

CKX Inc. (Nasdaq:CKXE), Iconix Brand Group Inc. (Nasdaq:ICON) and China Finance Online Co Ltd. (Nasdaq:JRJC) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sigma Designs Inc. (Nasdaq:SIGM), Magma Design Automation Inc. (Nasdaq:LAVA), Charlotte Russe Holding Inc. (Nasdaq:CHIC), Greenfield Online Inc. (Nasdaq:SRVY), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and Lululemon Athletica Inc. (Nasdaq:LULU).

Here are the most actively traded companies among small caps:

LIN TV Corp. (NYSE:TVL), China East Air (NYSE:CEA) and Yadkin Valley Financial Corp. (Nasdaq:YAVY) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.      

Also included among the results: Mid Penn Bancorp Inc. (AMEX:MPB), Endwave Corp. (Nasdaq:ENWV), TechTarget Inc. (Nasdaq:TTGT), Greenfield Online Inc. (Nasdaq:SRVY), NGAS Resources Inc. (Nasdaq:NGAS) and H&E Equipment Services Inc. (Nasdaq:HEES).       

Here are the biggest percentage gainers among small caps:           

Greenfield Online, Inc. (Nasdaq: SRVY), which surveys consumer attitudes about products and services, said this morning that Quadrangle Group’s takeover proposal for $17.50 per share in cash is a “superior proposal.”

Shares gained 7%, or $1.14, to $17.12 in pre-market trading. For detailed price information and news stories on Greenfield Online, click SRVY.

Small-cap stocks pushed higher Wednesday, bolstered by a rally in tech stocks and another soothing pullback in crude oil prices. The Russell 2000 (NYSE:IWM) gained 4.85, or 0.67%, to 725.90, the highest daily close since June 19.

Importantly, small caps finally broke free of the recent trading range. Sustained action above 726 is still needed to validate the upside breakout. Today’s rally also confirmed a breach of trendline resistance from both the June peak and the previous July high, which adds to the chart-related glow.

Crude oil prices slipped to 3-month lows today when the weekly inventory report showed a larger-than-expected build in crude oil stocks. The report reflected an increase in stocks of 1.7 million barrels, well beyond the forecast for a rise of 300,000. Still, gasoline stocks had a surprisingly large drawdown of inventory, which took some of the bearish sting out of the crude data. Overall, the weak tone in crude oil continues to provide a cushion for equity markets, providing some hope that consumers will spend less at the gas pump and more on other endeavors...

Small-cap stocks edged down in midday trading, pressured by Freddie Mac’s larger-than-expected second-quarter loss and by profit-taking from traders who caught Tuesday’s big rally.

At 12:36 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.90, or 0.12% at 720.14.

Freddie Mac (NYSE:FRE) has dropped 11% in midday trading on sloppy quarterly earnings and news that the firm will reduce its dividend. The mortgage lender reported a $821 million quarterly loss, setting a gloomy mood for investors. Fannie Mae (NYSE:FNM), another government-chartered lender that often closely tracks Freddie's price moves, was also lower in the midday, off some 7%.

“Reuters reports today that the U.S. Treasury has hired Morgan Stanley in an advisory role to help it analyze and better understand its new authorities to backstop housing finance giants Fannie Mae and Freddie Mac,” Andy Busch, global foreign exchange strategist for BMO Capital Markets said in an email. “Today, Morgan Stanley told thousands of clients this week that they won't be allowed to withdraw money on their home-equity credit lines, said a person familiar with the situation according to Bloomberg. Hmm, the grassy-knoll-conspiracy-theorist inside me thinks that the two are related.”

Crude oil futures had slipped $1.59 to $117.58 a barrel in recent trading. Inventory data this morning showed a larger-than-expected rise in U.S. oil stockpiles. In other commodity news, the U.S. dollar continued its rally in midday trading and is up against both the yen and the euro in recent trading.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 6% in the midday. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 2.25%.

Small-cap stocks pushed lower, pressured by news of soft earnings and by profit-taking from traders who caught Tuesday’s big rally. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 5.15, or 0.71% at 715.89.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 5% shortly after the open. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 1.5%.

However, the good news on big-cap techs was countered by big losses from a broad spectrum of companies. For example, Whole Foods Market Inc. (Nasdaq:WFMI), missed the earnings projection and tumbled 18% on the open. Also, priceline.com (Nasdaq:PCLN) was down 13% as the company had a cautious forward-looking statement. Freddie Mac (NYSE:FRE) dropped 13% on sloppy quarterly earnings and news that the firm will reduce its dividend.

Crude oil prices were on mildly firm footing this morning awaiting the weekly inventory report, which comes out near 10:35 a.m. ET. Energy prices have tanked in recent days, sinking over 19% from the summer peak to the recent low. The market is a little oversold on short-term momentum readings and vulnerable to a bounce. In addition, an explosion in a pipeline in Turkey and concerns about potential supply disruptions out of Africa were supportive elements in play. As for the inventory report, traders are looking for a build in crude oil stocks of about 300,000 barrels...

After a brief slump in morning trading spurred by the surge in crude prices, small caps have steadily risen during the Monday afternoon session. At 1:52 p.m. ET, the Russell 2000 (NYSE:IWM) was up 5.28, or 0.72%, at 738.89.

Crude oil have skyrocketed to more than $137 a barrel in afternoon trading. Investors reacted nonchalantly to Saudi Arabia’s announcement that it would increase production. In other commodity trading, the U.S. dollar is down against both the yen and the euro.

“Saudi Arabia has offered to increase oil production, as the world’s biggest oil exporter moves to address global fears that prices are spiraling out of control, according to the London Times. They said they would increase production by 200,000 barrels a day next month and this comes on top of a 300,000 increase in June,” Andy Busch, foreign exchange strategist for BMO Capital Markets, wrote in an email. “Together, the increases would take production above 10 million barrels a day in Saudi Arabia. Then, CNBC reports that they will have difficulty meeting this new level and a North Sea drill rig fire causes oil to go up.”

Earlier this morning, the NY Manufacturing Survey came in below expectations, which put the market on the defensive before the crude oil price spike delivered a knockout punch for stocks. The manufacturing report came out at minus 8.68 for June, well below the median forecast for a dip of 2, and eroding from last month’s figure of minus 3.23.

Lehman Bros. (NYSE:LEH) kept the financial sector on investors’ minds after announcing a $2.8 billion loss for the second quarter. Lehman’s early Monday announcement met its pre-announcement issued last week. In other large-cap financial news, American International Group (NYSE:AIG) was down some 1%, after announcing that the CEO will be replaced. Also on the large-cap front, General Electric (NYSE:GE) shares were off 0.5% after being downgraded overnight . . .

Small-cap stocks slumped on the opening, pulled down by a sudden surge in crude oil prices, which hit a fresh record high ahead of the stock market opening. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was off 2.30, or 0.31%, at 731.32.

Crude oil prices were undergoing a sleepy overnight rally toward the $136 zone, then abruptly shot up above $139 dollars a barrel, clearly unfazed by talk from Saudi Arabia that they would increase production. The dramatic rise in crude oil was accompanied by a slide in the U.S. dollar against the euro, which was off about 0.8%. Crude oil was not the only commodity market on a roll this morning, as silver rose some 5%, gold prices jumped 2% and grains markets were called sharply higher.

Earlier this morning, the NY Manufacturing Survey came in below expectations, which put the market on the defensive before the crude oil price spike delivered a knockout punch for stocks. The manufacturing report came out at minus 8.68 for June, well below the median forecast for a dip of 2, and eroding from last month’s figure of minus 3.23.

The financial sector remains in the spotlight this week, with Lehman Bros. (NYSE:LEH) announcing quarterly results ahead of the opening today. Earnings were in line with expectations, but the stock will likely take direction based on forward guidance. Shortly after the open, LEH shares were up 0.4%. In other large-cap financial news, American International Group (NYSE:AIG) was down 2%, after announcing that the CEO will be replaced. Also on the large-cap front, General Electric (NYSE:GE) shares were off 1.8% after being downgraded overnight by analysts at JP Morgan.

Federal Reserve Chairman Ben Bernanke did not comment on the outlook for the U.S. economy at a speech today on health-care reform. Over the weekend, Washington Post columnist Robert Novak said that Bernanke does not intend to raise . . .

Greenfield Online, Inc. (Nasdaq:SRVY) said this morning that it will be acquired by private investment firm Quadrangle Group for $426 million, or $15.50 per share in cash, pushing shares higher ahead of the opening.

The purchase price represents a premium of approximately 17% over the Internet survey provider’s closing share price on Friday of $13.28 and a premium of approximately 26% over the average closing share price during the prior 30 days.

Shares jumped 15%, or $1.92, to $15.20 in pre-market trading. For detailed price information and recent news stories about Greenfield Online, click SRVY.

The Russell 2000 (NYSE: IWM) is falling on news that U.S. Federal Reserve Chairman Ben Bernanke expects economic growth to slow in the fourth quarter. At 1:55 p.m. ET, the small-cap index had retreated 7.74 points, or 1%, to 768.22. The Dow Jones Industrial Average (INDU) was down 146.16 points, or 1.10%, to 13,153.86.

“Overall, the [Federal Open Market] Committee expected that the growth of economic activity would slow noticeably in the fourth quarter from its third-quarter rate,” Bernanke told the congressional Joint Economic Committee earlier today.

Economic growth will remain “sluggish” into the start of 2008 due to tighter credit and the slump in the housing sector, but will pick up later in the year, said the Fed chief.

Stocks started falling as soon as the news came out, with the Russell 2000 sliding below the flat line at about noon ET.

Bernanke also said that the depreciation of the U.S. dollar in combination with a rise in the price of oil have the increase of inflation in the long run.

The congressional testimony gave little clues as to the possibility of interest rate cuts in the near future, except that the central bank will remain watchful and will act as needed to ensure low inflation and economic growth.

Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Restoration Hardware Inc. (RSTO), up 141% on news it is being acquired for $267 million.
• Greenfield Online Inc. (SRVY), up 14% on news of a rise in third-quarter earnings.
• Stein Mart Inc. (SMRT), up 11% on news of a rise in October sales.

Biggest percentage losers:

• Hardinge Inc. (HDNG), down 37% despite news of a rise in third-quarter profit.
• Kenexa Corp. (KNXA), down 37% on news that it cut its full-year earnings guidance is below Wall Street estimates.
• PRG-Schultz International Inc. (PRGX), down 29%. A customer representative could not be reached for comment.

Restoration Hardware, Inc. (Nasdaq: RSTO), AeroCentury Corp. (AMEX: ACY) and Amcon Distributing Co. (AMEX: DIT) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) futures are pointing up and the small-cap index could open on good earnings news from Ford.

Automaker Ford Motor Co. (NYSE: F) reported this morning that it expects to break even in 2007 following news of a narrower third-quarter loss. The company beat Wall Street’s expectations by posting a loss of $380 million, compared with a loss of $5.2 billion a year earlier.

Also encouraging the bulls is news that British mining company Rio Tinto rejected a buyout offer from Australia’s BHP Billiton Ltd. The denial spread speculation of more possible mergers and acquisition activity.

But the bears are also in the game, following news that U.S. retailers posted weak sales in October, the second consecutive month of weak performance. Many retailers blamed the warm weather for stalling sales of cold-weather items.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• True Religion Apparel Inc. (TRLG), up 20% on news of a higher third-quarter revenue.
• H&E Equipment Services Inc. (HEES), up 15% on news of a stock buyback.
• Greenfield Online Inc. (SRVY), up 13% on news of strong third-quarter financials.

Biggest percentage losers:

• Kenexa Corp. (KNXA), down 31% on news that it cut its full-year earnings guidance below Wall Street estimates.
• Quality Distribution Inc. (QLTY) down 19% on news of a decline in third-quarter profit.
• GPC Biotech AG (GPCB) down 15% on news of a wider third-quarter net loss.

I. Name a company unfairly hit by the August market rout.

Answer: Greenfield Online (Nasdaq: SRVY), the fast-growing Internet survey and comparison shopping firm.

II. Why are shares undervalued?

_____ A. Second quarter earnings beat expectations 

_____ B. Greenfield’s comparison shopping segment Ciao! is driving growth

_____ C. Internet demand for surveys and shopping information is strong

_____ D. It’s got cash

_____ E. All of the above

Answer: E. Greenfield Online collects, organizes and sells its survey responses to marketing research companies and end-users globally. Through its comparison shopping business Ciao!, which is focused in Europe, it gathers user-generated product and merchant reviews, garnering revenue from e-commerce, merchant referrals, click-throughs and advertising. The Wilton, Conn.-based Greenfield uses a network of panelists and Internet users for its survey needs, allowing it to quickly and effectively respond to client demands. It is penetrating markets in Europe through Ciao!’s survey and shopping offerings, showing it is one of the premier companies in the field (for the U.K. version, see http://www.ciao.co.uk/).

Businesses rely on feedback from consumers to make product marketing decisions. Market research is a critical tool businesses use to assess products, pricing and promotions. The Internet is fundamentally changing market research by enabling researchers to collect high-quality data more quickly and efficiently. Compared to traditional mail, telephone or mall-based surveys, online research offers these advantages:

• Speed. Using the Internet, researchers can collect and process large volumes of data from diverse groups across multiple markets. Survey response times are measured in hours instead of weeks since Internet technology allows thousands of surveys to be administered simultaneously.
• Cost effectiveness. Internet surveys dramatically lower the cost of market research by minimizing data collection costs.
• Improved results. The Internet allows a level of privacy and anonymity not possible in telephone or mall-based surveys. In addition, since there is no interaction with an interviewer; interview bias is eliminated. Internet surveys can also include images, sounds and video not possible with telephone or mail surveys.  

While still in an early growth stage, online research is expected to transform the worldwide market research industry. Overall market research spending is forecast at around $12 billion in 2007 and projected to grow 5-7% annually over the next several years. Online market research represents a multi-billion dollar opportunity that is largely untapped. Spending on online research is forecast to reach $1.9 billion in 2007 but is dwarfed by spending on mail, telephone and mall-based surveys estimated at $10 billion This disparity suggest an $8 billion opportunity as online surveys begin to replace traditional survey methods. 

Two small caps poised to benefit are Harris Interactive Inc. (Nasdaq: HPOL) and Greenfield Online, Inc. (Nasdaq: SRVY).