Tag - TRLG

If you asked my wife or my employees what kind of investor I am, they'd probably tell you that I'm a growth-oriented value investor.

I made my bones as an analyst over the past 12 years by focusing on small-cap companies for that very reason; I enjoy doing in-depth research of undiscovered, small companies with the potential for significant capital gains.

Stocks are rallying this morning as the world breaths a sigh of relief over two key developments. First, we found out this morning that American International Group (NYSE: AIG) will be selling its Asian life insurance business for $35.5 billion. The troubled insurer needs to liquidate assets to pay back the U.S. government which came to its rescue in 2008. Second, another bailout package, this time for the troubled country of Greece, is helping world markets rally.  European nations are set to announce a potential solution to the country's debt problems whereby European state-owned banks would buy Greek government bonds.  

Sound familiar? It appears the new solution to over-burdened institutions is now a government sponsored bailout package. And judging by the market's reaction this morning, it appears investors have lost the bailout blues.  

***I wrote last week that I'm getting increasingly bullish on small-caps given their leadership in the market. And today we're seeing the Russell 2000 small-cap index rally 1.5% higher to lead the major U.S. indices. Our Small Cap Investor PRO portfolio is moving sharply higher spurred by foreign markets like China's Shanghai Index which rose more than 1% in Monday's session. 
Also today, commodity prices, mostly metals, are getting a boost from an earthquake in South America over the weekend. The epicenter of the quake was near Chile, which produces a quarter of the world's copper. Early reports estimate that one fifth of the country's mining production will be on hold following the earthquake. This is a terrible tragedy for the country, although I have no doubt the Chileans will bounce back even stronger. The country has a history of recovering from devastating earthquakes and there is no reason to believe the people won't do the same once again. 

Stocks closed down today in all of the major U.S. indices. The Dow closed down 25.92 points to end at 9,070.80; the Nasdaq ended at 1,967.76, down 7.75 points; and the S&P 500 moved downward 4.48 points to close at 975.44.

The Russell 2000 ended the day at 549.54, down 2.56 points.

Small-cap gainers were lead by American Axle & Manufacturing (NYSE:AXL) up 50% to close at $2.02. Other small-cap share price gainers Elron Electronic Industries (Nasdaq:ELRN) up 45%; McClatchy Company (NYSE:MNI) up 44%; and Conseco (NYSE:CNO) up 36%.

Small-cap decliners were lead by Frontier Financial Corp. (Nasdaq:FTBK) down 21% on announcing Q2 losses of $1.06 per share versus gains of $0.04 a year ago. Joining FTBK in leading decliners today were THQ (Nasdaq:THQI) down 19%; Alvarion (Nasdaq:ALVR) down 17%; and Ariad Pharmaceuticals (Nasdaq:ARIA) down 16%.

*****With the exception of the Nasdaq, the major indices finished yesterday with slight losses. And it looks like an even money bet whether they'll finish in the red today. We've seen an unlikely move over the last two weeks. The S&P 500 has made gains in 9 of the last 11 sessions and moved 11.3% higher. Volume hasn't been especially strong during this move, but it is summer. Volume is always a bit lighter in the summer.

It seems more and more strategist-types are looking for a pullback or correction for stocks. Yesterday, CNBC's Jim Cramer said he was expecting some red. Of course, Cramer makes so many calls it's hard to keep them all straight.

For the record, Cramer says he likes healthcare stocks, technology and financials, believe it or not. He says financials are so universally hated that they will be stronger than average in the event of a pullback. That's the "no one left to sell" theory.

I'm not so sure. The banks have been given time to earn their way back to health. And it could work. But a lot depends on the housing market. Many banks still carry toxic assets. And their reluctance to sell into Geithner's PPIP suggests they remain hopeful these assets will regain value. If they don't, it could be problematic. And then there's the commercial real estate situation we've been discussing.

******Did you know I'm about to publish my first book? The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks will hit the shelves on September 14.

In The Small Cap Investor, I share the proven techniques for uncovering the small cap companies poise for a huge run higher. My biggest success was apparel company True Religion (Nasdaq:TRLG). I recommended that stock to my readers at $1.13 a share. We sold it in 2008 for 2,216% gains. My techniques have also led my SmallCapInvestor PRO advisory service to a 93% win rate this year.

Now, I need your help. As part of the marketing plan for my book, we are holding a T-shirt contest. I want you to be the one who comes with the slogan for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt.

Obviously, "Secrets to Winning Big with Small Cap Stocks" is taken. But slogan's like "I made a 142% on Gulfport Energy and all I got was this lousy T-shirt" or "Ian Wyatt: The Best Small Investor" are open.

We'll be holding the voting on the Small Cap Investor page on Facebook starting today and running through August 9th. You can leave your submissions there, or send them to tshirt@smallcapinvestor.com.

The winner will get their very own shirt plus a full-year subscription to SmallCapInvestor PRO. This should be a lot of fun. I hope you'll participate.

******China is in the news again. Overnight, the Shanghai Composite fell 5%, the biggest drop in eight months. Investors are nervous on reports that the Chinese government may be discussing clamping down on lending due to the potential for imbalances to occur.

Specifically, Bloomberg is reporting that the Chinese government is concerned that asset bubbles may be forming in the stock market and that inflation may be building.

Chinese stocks are reportedly trading at 35 times reported earnings. And that is expensive. But interestingly, the Chinese stocks in the SmallCapInvestor PRO portfolio are trading with Price-to-Earnings ratios between 8 and 11. That's much cheaper than most Chinese stocks, apparently, and one of the reasons we recommended them.

Of course, valuations won't keep our stocks from declining if the Chinese stock market takes a hit. But Chinese stocks are recovering today after last night's sell-off, so that's a good sign.

If you're interested in finding out more about the Chinese stocks in the SmallCapInvestor PRO portfolio click here to get a copy of the report.

*****Finally, Top Stock Insights reader took 35% gains yesterday on Chinese medical device maker called Mindray (NYSE:MR). I love the science fiction name, but couldn't resist taking the gains.

Best Regards,

Ian Wyatt
Editor
SCI Daily

TiVo Inc. (Nasdaq:TIVO), First Financial Bancorp (Nasdaq:FFBC) and Isle of Capri Casinos Inc. (Nasdaq:ISLE) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: PDL BioPharma Inc. (Nasdaq:PDLI), AgFeed Industries Inc. (Nasdaq:FEED), Century Aluminum Co. (Nasdaq:CENX), Iconix Brand Group Inc. (Nasdaq:ICON), True Religion Apparel Inc. (Nasdaq:TRLG) and Exelixis Inc. (Nasdaq:EXEL).

VisionChina Media Inc. (Nasdaq:VISN), Olympic Steel Inc. (Nasdaq:ZEUS) and First California Financial Group Inc. (Nasdaq:FCAL) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BroadVision Inc. (Nasdaq:BVSN), Monroe Bancorp (Nasdaq:MROE), USANA Health Sciences Inc. (Nasdaq:USNA), True Religion Apparel Inc. (Nasdaq:TRLG), Timberland Bancorp Inc. (Nasdaq:TSBK) and Quaker Chemical Corp. (Nasdaq:KWR).

SunPower (Nasdaq:SPWRA), DryShips Inc. (Nasdaq:DRYS) and UAL Corp. (Nasdaq:UAUA) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Buffalo Wild Wings Inc. (Nasdaq:BWLD), Geron Corp. (Nasdaq:GERN), Kendle International Inc. (Nasdaq:KNDL), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), True Religion Apparel Inc. (Nasdaq:TRLG) and Zoran Corp. (Nasdaq:ZRAN).

Nelnet Inc. (Nasdaq:NNI), Student Loan Corp. (Nasdaq:STU) and CDI Corp. (Nasdaq:CDI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: True Religion Apparel Inc. (Nasdaq:TRLG), Goodrich Petroleum Corp. (Nasdaq:GDP), Kronos Worldwide Inc. (Nasdaq:KRO), TAL International Group Inc. (Nasdaq:TAL), Kindred Healthcare Inc. (Nasdaq:KND) and Indiana Community Bancorp (Nasdaq:INCB).

Delta Petroleum Corp. (Nasdaq:DPTR), DryShips Inc. (Nasdaq:DRYS) and United Natural Foods Inc. (Nasdaq:UNFI) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Finish Line Inc. (Nasdaq:FINL), True Religion Apparel Inc. (Nasdaq:TRLG), Iconix Brand Group Inc. (Nasdaq:ICON), Green Mountain Coffee Roasters Inc. (Nasdaq:GMCR), Hibbett Sports Inc. (Nasdaq:HIBB) and i2 Technologies Inc. (Nasdaq:ITWO).

Small-cap stocks remained lower into midday trading, but were also well off the morning lows as oversold conditions, erratic bargain-hunting, firm tech and retail stocks helped limit some of the gloom surrounding the latest economic news. The market continued to fret about the fate of domestic automakers, and continued to suffer money flow exit into safe-haven docks. Some of today’s small-cap gainers are Gymboree Corp. (Nasdaq:GYMB), KLA-Tencor Corp (Nasdaq:KLAC) and Dress Barn (Nasdaq:DBRN).

Other Market Watch highlights today included:

• The Energy Select Sector SPDR Fund was off 6.7% at mid-session.  
• Crude oil prices tumbled below $50 a barrel, reaching the lowest point since May 2005 and energy stocks were taking a beating today.  
• The market continues to fret about the fate of domestic automakers, and continued to suffer money flow exit into safe-haven docks.  
• The chart structure for small caps is awful right now, with the Russell 2000 in freefall mode through support points that date back more than five years.

Small Cap Gainers:

• Gymboree Corp. is up 25% in afternoon trading as the children’s retailer beat the earnings forecast. See (Nasdaq:GYMB).  
• Analysts' projections of KLA-Tencor Corp. remain unaffected after the semiconductor company announced it would cut 15% of its workforce. Shares up 10.3%. See (Nasdaq:KLAC).
• Dress Barn up about 10% on an increase in Q1 net earnings. See (Nasdaq:DBRN).
• True Religion Apparel up nearly 6% today following a surge in Q3 profits reported earlier this month. See (Nasdaq:TRLG).

Small Cap Losers:

• Media General shares lost as much as 54% of their value on Thursday after Harbinger Capital sold stock in the newspaper publisher. See (NYSE:MEG).
• Arbor Realty Trust hit a new 52-week low of $1.90, down from a 52-week high of $19.20. Shares are currently down 31%. See (NYSE:ABR).  
• REITs continue to bleed red in the weathered economy and ProLogis is no exception. Shares of the REIT are down over 22%. See (NYSE:PLD).  
• Suntech Power Holdings cuts forecast, shares fall to all-time low of $5.33. See (NYSE:STP).

Transmeta Corp. (Nasdaq:TMTA), DryShips Inc. (Nasdaq:DRYS) and SuccessFactors Inc. (Nasdaq:SFSF) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Altra Holdings Inc. (Nasdaq:AIMC), IPG Photonics Corp. (Nasdaq:IPGP), Mentor Graphics Corp. (Nasdaq:MENT), Canadian Solar Inc. (Nasdaq:CSIQ), James River Coal Co. (Nasdaq:JRCC) and True Religion Apparel Inc. (Nasdaq:TRLG).

Atlas Air Worldwide Holdings Inc. (Nasdaq:AAWW), Callon Petroleum Co. (Nasdaq:CPE) and Trina Solar Ltd. (Nasdaq:TSL) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: USG Corp. (Nasdaq:USG), Digital River Inc. (Nasdaq:DRIV), Zale Corp. (Nasdaq:ZLC), Danaos Corp. (Nasdaq:DAC), Emeritus Corp. (Nasdaq:ESC) and True Religion Apparel Inc. (Nasdaq:TRLG).

Taleo Corp. (Nasdaq:TLEO), Macerich REIT (Nasdaq:MAC) and Digital River Inc. (Nasdaq:DRIV) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: True Religion Apparel Inc. (Nasdaq:TRLG), Trina Solar Ltd. (Nasdaq:TSL), Citizens Holdings Co. (Nasdaq:CIZN), QCR Holdings Inc. (Nasdaq:QCRH), Callon Petroleum Co. (Nasdaq:CPE) and iPCS Inc. (Nasdaq:IPCS).

DryShips Inc. (Nasdaq:DRYS), Canadian Solar Inc. (Nasdaq:CSIQ) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Zhongpin Inc. (Nasdaq:HOGS), Fuel Systems Solutions Inc. (Nasdaq:FSYS), TBS International Ltd. (Nasdaq:TBSI), Ezcorp Inc. (Nasdaq:EZPW), True Religion Apparel Inc. (Nasdaq:TRLG) and Clean Energy Fuels Corp. (Nasdaq:CLNE).

Here are the most actively traded companies among small caps:

Worship at the alter of denim: True Religion Apparel, Inc. (Nasdaq:TRLG) is the true religion for jean wearers and investors alike, churning out stellar top and bottom-lines around a brand that has garnered considerable clout in only five years.

True Religion’s fit, look and feel of lived-in jeans is what has created a competitive advantage for the jean manufacturer in a saturated market and pushed it to the designer-brand level. The jeans, which are sold through stand-alone stores and high-end department stores such as Saks 5th Avenue and Neiman Marcus, range from $170 to $350 per pair.

Given the success True Religion has had, it’s branching out into other clothing offerings, such as jackets, shorts, cargo pants, tops and shirts in other non-denim fabrics such as corduroy and twill. The retailer is also expanding into colored denim this year, and last year the patented its “super big-T stitch,” a distinctive thread stitch that characterized its best-selling products in 2007.

While almost every other retailer continues to languish in the murky macro environment characterized by crippled consumer spending, True Religion is devoutly hitting quarter after quarter out of the ball park.

For the second quarter ended June 30, 2008, net sales for the consumer direct segment, the company’s bread and butter, surged 170.5% to $17.7 million from $6.5 million in the prior year period. A segment mix shift toward the company’s higher margin consumer direct business has certainly helped buoy results.

While most other retailers have had to close stores to make ends meet, True Religion opened 12 new stores in the quarter.

Both revenues and earnings bested the consensus on Wall Street. Revenues soared 79% to $64.2 million from $35.9 million in the same quarter last year. Net income surged 86% to $9.3 million, or $0.39 per share, compared with profit of nearly $5 million, or $0.21 per share, for the second quarter in 2007. Analysts were expecting earnings of $0.32 per share on sales of nearly $50.2 million.

International revenues picked up steam, soaring 66.3% in the quarter.

What remains impressive about True Religion is that its jeans will likely remain the “it” pairs for the remainder of the fiscal year on account of management’s . . .

Medivation Inc (Nasdaq:MDVN), Solarfun Power Holdings Co Ltd (Nasdaq:SOLF) and Sequenom Inc (Nasdaq:SQNM) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Canadian Solar Inc (Nasdaq:CSIQ), ViroPharma Inc (Nasdaq:VPHM), Given Imaging Ltd (Nasdaq:GIVN), True Religion Apparel Inc (Nasdaq:TRLG), Quest Energy Partners L P (Nasdaq:QELP) and RAM Energy Resources Inc (Nasdaq:RAME).

Here are the most actively traded companies among small caps:

Emcore Corp (Nasdaq:EMKR), China Sunergy Co Ltd (Nasdaq:CSUN) and True Religion Apparel Inc (Nasdaq:TRLG) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $750 million.

Hoku Scientific Inc (Nasdaq:HOKU), Ricks Cabaret International Inc (Nasdaq:RICK) and Kenexa Corp (Nasdaq:KNXA) are also among the most actively traded companies.

Here are the most actively traded companies among small caps:

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $50 million and $750 million:

Biggest percentage gainers:

• Aceto Corp. (Nasdaq:ACET), up 13% after the distributor of chemically derived pharmaceuticals, biopharmaceuticals, specialty chemicals and crop protection products posted fiscal third-quarter earnings Friday morning that trumped the consensus on Wall Street and posted sales that increased 29.5% from the year-ago quarter.
• Obagi Medical Products, Inc. (Nasdaq:OMPI), up 9%.
• True Religion Apparel, Inc. (Nasdaq:TRLG), up 8%, after first-quarter results trumped the consensus on Wall Street and the designer jean manufacturer raised its 2008 guidance.

Biggest percentage losers:

• NGAS Resources, Inc. (Nasdaq:NGAS), down 8% after the natural gas exploration and production company reported first-quarter revenues after Thursday’s close that fell below the Street’s view.
• Vision-Sciences Inc. (Nasdaq:VSCI), down 6%.
• Exactech Inc. (Nasdaq:EXAC), down 5% after the producer of bone and joint restoration products said this morning that it has gone back to the equity markets and sold 877,391 shares of its stock at $23.00 per share for gross proceeds of approximately $20.2 million.

Synchronoss Technologies Inc (Nasdaq:SNCR), DrdGold ADR (Nasdaq:DROOY) and Ricks Cabaret International Inc (Nasdaq:RICK) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $750 million.

True Religion Apparel Inc (Nasdaq:TRLG), China Technology Development Group Corp (Nasdaq:CTDC) and EMCORE Corp (Nasdaq:EMKR) are also among the most actively traded companies.

Here are the most actively traded companies among small caps:

Small-cap stocks opened lower and traded in a fairly narrow range during the rest of today’s session, trimming losses off the lows, but never catching up with a tame rise in the Dow and S&P 500. In the end, the Russell 2000 (NYSE:IWM) tumbled 5.39, or 0.76%, to 708.00, but an inside session dip for the small-cap index in the shadow of Wednesday’s big rise wasn’t all that unsettling.

However, if it all feels like a familiar refrain, you’re right. The Russell 2000 has now had five 3% one-day gains so far this year, and has now closed lower four times and was flat in the other instance. In essence, the market has been unable to sustain momentum off big rally days as investors are unwilling to take a stand that the worst is over for stocks. When the stock market starts to fly, investors are more willing to buy into strength and fund managers will scramble to catch up with the market. For now, the inability to sustain rallies suggests that the market is still burdened by caution. In the long haul, creating a “wall of worry” isn’t necessarily a bad thing when stocks are trying a build a foundation low, but it can create volatility, uncertainty and rollercoaster-price moves along the way.

Economic news today was less embraced by investors than what we saw during Wednesday’s big upside push. The most dynamic report came from the Philadelphia Federal Reserve, as their survey on manufacturing activity in the area came in down 24.9%, well below the market forecast which was in the minus 15 to . . .

Shares of True Religion Apparel, Inc. (Nasdaq: TRLG) are treading in the green today after the company most notably known for its jeans brand, True Religion, reported third-quarter results in line with the Street.

For the three months ended Sept. 30, the small cap recorded net income of $8.9 million, or $0.38 per share for the quarter. Excluding $0.4 million in charges related to the separation agreements with former executives and the impact of an increased tax rate that had the effect of reducing earnings per diluted share by $0.03, net income was $9.8 million or $0.42 per share. The consensus of eight analysts polled by Thomson was earnings of $0.39 per share.

Net sales were $48.7 million, an increase of 12.8% from $43.2 million in the 2006 third quarter and in line with the $48.09 million in revenues eight analysts polled by Thomson were on average expecting.

Net sales for the company’s consumer direct segment increased to $7.2 million from $0.7 million in the third quarter of 2006 on account of retail store expansion, with 11 full-price stores and two outlet stores open at the end of the third quarter of 2007, compared with one full-price store and one outlet store at that date last year.

Net sales in the company’s U.S. wholesale segment remained roughly flat at $30.1 million, compared with $30 million in the same quarter last year. The company said this segment’s sales growth was pressured by production delays related to new, more intricate fall merchandise.

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.

Superconductor Technologies, Inc. (Nasdaq: SCON), Accredited Home Lenders Holding Co. (Nasdaq: LEND) and Rackable Systems, Inc. (Nasdaq: RACK) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

In a Tuesday afternoon investor conference, True Religion Apparel, Inc. (Nasdaq: TRLG) executives said revenue and consumer demand for the company’s premium denim products will continue to grow. The Vernon, Calif.-based company expects $167.1 million in revenue during 2007, up from $139 million in 2006. The clothing maker also reaffirmed guidance for annual earnings-per-share of between $1.24 and $1.27.

“We continue to take away market share from competitors,” Michael Buckley, True Religion’s president, told investors. “True Religion is consistently No. 1, No. 2 or No. 3 among the retailers it receives information from. These stores are simply printing money.”

Buckley said the publicity of taste-making celebrities is helping to drive demand. He cited celebrities such as Beyoncé, Paris Hilton, David Beckham, Jessica Simpson, Britney Spears and Alex Rodriguez who have been pictured in magazines wearing True Religion products. Rodriguez was infamously pictured in the New York Post wearing a pair of the company’s jeans with an exotic dancer who was not his wife. One of Buckley’s presentation slides showed a picture of hotel heiress Paris Hilton going to jail with the caption: “Off to the big house in her True Religions.”

The company’s financial good news looks likely to continue. Demand is higher than ever and gross margins of more than 56% are “here to stay,” said CFO Pete Collins. He said the company also expects operating margins to expand.

The company’s financial health has been propelled by a number of encouraging factors. The average price and number of pairs of jeans owned is increasing, Buckley said. He said the company’s target audience is large and growing, with an average household income of over $100,000. The company’s jeans retail for more than $200.

Here’s a real test for the old saw that there’s no such thing as bad publicity. The good news: the New York Yankees’ Alex Rodriguez, A-Rod, the highest-paid player in Major League Baseball, is photographed wearing your True Religion brand jeans. The bad news: the photograph is taken in Las Vegas to catch A-Rod stepping out on his wife with a stripper.

This is the kind of quirky event that has kept True Religion Apparel, Inc. (Nasdaq: TRLG) on a roller coaster. Somehow it worked better when Paris Hilton conspicuously wore True Religion jeans on her way to jail. Another marital issue affecting the stock: True Religion CEO Jeffrey Lubell last month had to sell 2.3 million company shares, about one-fourth of his holdings, as part of a divorce settlement with his ex-wife, Kymberly Gold-Lubell, who used to be in charge of women’s design for the maker of premium jeans and other sport apparel.

On the financial front, True Religion rocketed upwards at the end of May when Sterne Agee analyst Ronald Bookbinder upgraded the stock to “Buy” from “Sell.” The stock went shooting up in the following days to nearly $20 from about $16, in keeping with Bookbinder’s new target. Last week CIBC analyst Dorothy Lakner upgraded True Religion to “Sector Outperform” from “Sector Perform.”
 
At the same time, True Religion ended its talks with Goldman Sachs about looking for a possible buyer. The company has felt for some time that its stock is undervalued, but decided for now to remain independent.

While True Religion is forging ahead on several fronts, the biggest plus for analysts is the company’s aggressive expansion of its direct retail operations as it opens its own stores in all the trendy shopping venues. When a company manages to sell a pair of jeans for an average $200 apiece and already has a gross margin north of 50%, it might seem hard to significantly improve margins. But direct retail does it – True Religion was realizing a 75% gross margin in the four stores it had open by the end of 2006. Plans call for having 14 stores by the end of this year, 30 by the end of 2008 and more than 50 by the end of 2009.

Of the major U.S. indices, the Russell 2000 fell the most on a day of seesaw trading that ended in the red on renewed concerns the troubles in the sub-prime mortgage market might spread. The Russell 2000 dropped 7.29 points, or 0.87%, to finish at 827.46. The Dow Jones Industrial Average shed 8.21 points, or 0.06%, to 13,352.05.

Stocks began the morning mixed on news that purchases of existing home sales declined 0.3% in May to an annual rate of 5.99 million, according to the National Association of Realtors. That’s the lowest level since June 2003. April sales were 6.01 million at an annualized rate.

The number of homes waiting to be sold increased 5% to 4.43 million. The median price of an existing home fell 2.1% to $223,700.

A management-led team of truckload carrier U.S. Xpress Enterprises (Nasdaq: XPRSA) announced it plans to initiate a $20 per share offer for all class A common stock.

The Associated Press reported on Sunday that General Electric Co. (NYSE: GE) is buying thin film products from DayStar Technologies Inc. (Nasdaq: DSTI).

America First Apartment Investors, Inc. (Nasdaq: APRO) reported it has signed a contract with Sentinel Omaha LLC, an affiliate of the privately held Sentinel Real Estate Corp., for $25.30 per share, or about $532 million in cash.

Professional services company Versar Inc. (AMEX: VSR) announced it was awarded a design and build contract for the U.S. Army Corps of Engineers. The contract is associated with the base realignment and closure program at Fort Lee, Va.

Orexigen Therapeutics, Inc. (Nasdaq: OREX) announced its weight loss treatment Contrave showed a positive effect on visceral fat and insulin resistance in a mid-phase study.

European hedge fund firm GLG Partners announced its plan to go public though a transaction with Freedom Acquisition Holdings, Inc. (AMEX: FRH).

Citing a new management team and expansion outside its core denim business, CIBC World Markets upgraded True Religion Apparel, Inc. (Nasdaq: TRLG) to “sector outperformer” from “sector performer.”

These are the biggest percentage gainers in Monday's trading among companies with market capitalizations under $500 million:

The Russell 2000 set a second consecutive record high close as small-cap investors shrugged off news of snail-pace U.S. economic growth.  The Russell 2000 added 3.79 points, or 0.45%, to settle at a new record close of 847.14.  The Dow Jones Industrial Average lost 5.44 points, or 0.04%, to close at 13,627.64, following its record close on Wednesday.

The headline grabbing news today was that the U.S. economy grew at an annual rate of just 0.6% during the first three months of 2007, the U.S. Commerce Department reported before the opening bell.  That’s its worst performance since the fourth quarter of 2002.

Shares in Novacea, Inc. (Nasdaq: NOVC) are up over 85% in Wednesday midday trading on an announcement the biopharmaceutical company entered into an exclusive worldwide license agreement with biopharmaceutical company Schering-Plough Corp. (NYSE: SGP) for the development and commercialization of the cancer drug Asentar.

Shares of True Religion Apparel Inc. (Nasdaq: TRLG) are up over 13% after Sterne, Agee & Leach Inc. raised its rating on the clothing maker, saying the company has strong growth prospects.

Versant Corp. (Nasdaq: VSNT) shares are up after the data management software company announced a jump in second-quarter earnings after the close of trading Tuesday. Net income for the Fremont, Calif.-based company in the second quarter ended April 30 totaled $1.9 million, or $0.52 a share, up from $1.2 million, or $0.23 a share, in the year-ago period.

In midday Wednesday trading, Synovis Life Technologies, Inc. (Nasdaq: SYNO) shares were up over 7% after the company reported before the start of trading a 47% jump in its surgical business division for the second quarter ended April 30. The surgical products maker reported a $0.7 million profit, or $0.06 a share, up from a $0.4 loss, or $0.04 per share, a year earlier.

These are the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $500 million:

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

True Religion Apparel Inc.’s (Nasdaq: TRLG) stock got a boost in after-hours trading today despite missing first quarter estimates as the company reiterated its 2007 guidance.

For the three months ended March 31, the Vernon, Calif.-based apparel firm posted non-GAAP, or adjusted, net income of $5.6 million, or $0.24 per diluted share, on revenue of $36.1 million.

Nine analysts polled by Thomson First Call had expected earnings per share of $0.28 on revenue of $39.9 million.

The firm also reiterated its previously reported guidance for 2007 of EPS between $1.24 and $1.27 on revenue of $167 million.

Physicians Formula Holdings Inc.’s (Nasdaq: FACE) stock dropped by $1.90, or 8.7%, to $20.05 after the closing bell today after the Azusa, Calif.-based company released its first quarter financial results and second quarter outlook. For the three months ended March 31, the cosmetic company posted net income of $0.30 on revenue of $35.7 million. Net income included $0.03 per share of non-cash compensation expense after tax and $0.01 per share of secondary offering costs after tax. Excluding these items, adjusted net income per diluted common share would have been $0.34 for the first quarter of 2007. Three analysts polled by Thomson First Call had estimated earnings per share of $0.27 on revenue of $34 million. Looking ahead, though, the company predicted it would report a net loss between $0.04 and $0.01 on revenue of between $24.5 million to $25.5 million for the second quarter. Analysts were expecting earnings per share of $0.18 on revenue of $28.6 million.

Shares of S1 Corp. (Nasdaq: SONE) dipped by $0.17, or 2.5%, to $6.78 in after-hours trading today when the Atlanta-based financial software company released its first quarter financial results and full-year guidance. S1 earned $0.05 per share on revenue of $47.6 million. Analysts had estimated earnings per share of $0.05 on revenue of $48.2 million. For 2007, S1 expects GAAP earnings of between $0.25 and $0.28 per share on revenue in the range of $200 million to $206 million. Analysts were expecting non-GAAP EPS of $0.21 on revenue of $201.2 million.