Tag - Acad

It was a bad day for stocks. The Dow Industrials was down 185 points or 1.9%. The S&P 500 lost 22 points, the Nasdaq lost 40 points and the Russell 2000 dropped 15 points or 2.65%. On a percentage basis, the Russell was the biggest loser, which is to be expected. Small cap stocks outperform on both the up and the downside.

Retractable Tech (AMEX:RVP) was the top small cap gainer today, jumping 103%. This move came on no news that I could find, but somebody knows something – volume was huge. 

Mining and oil company U.S. Energy Corp (Nasdaq:USEG) came in second with a more reasonable 22% move. Rounding out the top 5 were Anadys Pharmaceutical (Nasdaq:ANDS) up 19% Digital Angel (Nasdaq:DIGA) up 17%, and Alpha Pro Tech (AMEX:APT) up 13%.

Not a good day for some small cap biotech stocks. Acadia Pharmaceutical (Nasdq:ACAD) was the top loser with a gut-wrenching 65% decline. Builders FirstSource (Nasdaq:BLDR) also made the list with a 35% drop. Other notable losers include, Catalyst Pharmaceutical Partners (Nasdaq:CPRX) down 21%, Gander Mountain (Nasdaq:GMTN) down 18%, and AIG (NYSE:AIG), yes THAT AIG, down 18%.

*****Yesterday's headlines made it sound like the sky was falling after China's Shanghai Index sold off 6.7%. There's no doubt, bulls are a bit nervous and bears are getting a bit bolder. That's to be expected after a six month rally that's been remarkable in that there have been no corrections.

That's also why it's imperative to keep a cool head these days: there's a big difference between what the financial media is saying and what investors are doing.

If you didn't read the news yesterday and simply watched the S&P 500, you'd wonder what the excitement was all about. The S&P dropped right out of the gate, but quickly recovered and finished the day with a -0.8% loss.

Even Chinese stocks listed on U.S. exchanges made a nice recovery from the early weakness.

*****The reason U.S. stocks are shrugging off seemingly bad news is pretty simple. The government has guaranteed much of the risk for the financial markets. That's lead to a recovery for the U.S. economy. And it's widely expected that the U.S. economy is putting up decent growth numbers in the third quarter, which is now two-thirds over.

Oil's action yesterday is also telling. Yes, oil was down. It traded below $70 a barrel yesterday. But it's hard to call that bearish. After all, oil just hit a new high at $75 a few days ago. A little consolidation, or profit-taking is in order.

Frankly, the relatively small correction for oil prices seems bullish when you consider how important the China growth story is for oil prices. That could change, of course. But right now, there's' no reason to panic that the rally is over and the bear market is coming back.

*****The main concern for the bulls right now should be third quarter earnings. In my opinion, the low rate of revenue growth for corporations is the biggest threat to the Cash for Clunker Stock Rally.

According to Goldman Sachs, 46% of companies soundly beat earnings expectations in the second quarter. But only 23% did so with a healthy boost to revenues.

For the most part, earnings growth was a result of cost-cutting. And without a rise in revenues, there's no way for earnings to keep growing. Retail stocks will show this most clearly, as they are most dependent on consumer spending.

*****Before I finish for the day, I want to discuss Chinese stocks a little more. Yesterday, I mentioned that economist Andy Xie is calling the Shanghai Composite a bubble. And that may be.

But ever time I review the Chinese stocks that are in the SmallCapInvestor PRO (and believe me, I review them frequently), I'm encouraged by the low valuation and attractive growth prospects.

The highest forward P/E among them is 14.5. And the PEG ratios average around .5.

Now, it could be that aggressive lending in China is pumping revenues artificially, and that's showing up in P/E and PEG ratios. But SmallCapInvestor PRO Chinese stocks are well diversified between energy, biotech, commodity and technology. I'm not convinced that all of these stocks are being lifted by the same loose lending practices.

*****Also, I'm releasing a new micro-cap report to SmallCapInvestor PRO readers today. This report features my "best bet" micro-cap stocks to post triple-digit returns. If you'd like to get that report, or find out about the Chinese stocks we're holding, click here.  
 
Until tomorrow,

Ian Wyatt
Editor
Small Cap Investor daily

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.

Charlotte Russe Holding Inc (Nasdaq:CHIC), Electro-Optical Sciences Inc (Nasdaq:MELA) and Saga Communications Inc (Nasdaq:SGA) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Martha Stewart Living Omnimedia Inc (Nasdaq:MSO), Osiris Therapeutics Inc (Nasdaq:OSIR), Southern National Bancorp Of Virginia Inc (Nasdaq:SONA), Biocryst Pharmaceuticals Inc (Nasdaq:BCRX), ACADIA Pharmaceuticals Inc (Nasdaq:ACAD) and American Commercial Lines Inc (Nasdaq:ACLI).

Huron Consulting Group Inc. (Nasdaq:HURN), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and Century Aluminum Co. (Nasdaq:CENX) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: American Dental Partners Inc. (Nasdaq:ADPI), Crocs Inc. (Nasdaq:CROX), ACADIA Pharmaceuticals Inc. (Nasdaq:ACAD), Geron Corp. (Nasdaq:GERN), UAL Corp. (Nasdaq:UAUA) and Canadian Solar Inc. (Nasdaq:CSIQ).

InterDigital Inc. (Nasdaq:IDCC), Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX) and Fuqi International Inc. (Nasdaq:FUQI) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Century Aluminum Co. (Nasdaq:CENX), UAL Corp. (Nasdaq:UAUA), Energy Conversion Devices Inc. (Nasdaq:ENER), Kirklands Inc. (Nasdaq:KIRK), Crocs Inc. (Nasdaq:CROX) and ACADIA Pharmaceuticals Inc. (Nasdaq:ACAD).

Ares Capital Corp. (Nasdaq:ARCC), Great Lakes Dredge & Dock Corp. (Nasdaq:GLDD) and Bancorp Bank (Nasdaq:TBBK) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Century Aluminum Co. (Nasdaq:CENX), ACADIA Pharmaceuticals Inc. (Nasdaq:ACAD), Jinpan International Ltd. (Nasdaq:JST), Orexigen Therapeutics Inc. (Nasdaq:OREX), UAL Corp. (Nasdaq:UAUA) and Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX).

Stocks extended their gains for a second day in a row with all major indices closing up, though below a one percent gain.

The Dow finished the session at 9,398, up 37 points; the Nasdaq closed today at 2,009, up 11 points; and the S&P 500 finished at 1,012, up 7 points.

The Russell 2000 index, a composite of the leading small-cap stocks, closed at 575, up 4 points.

Small-cap price movers were lead by Kodiak Oil (Amex:KOG), up 30%. Following KOG were Dot Hill Systems (Nasdaq:HILL), up 22%; Pacer International (Nasdaq:PACR), up 16%; BioSante Pharmaceuticals (Nasdaq:BPAX), up 16%; and ACADIA Pharmaceuticals (Nasdaq:ACAD), up 16%.

*****Last week's better-than-expected payroll data is being offset by new jobless claims today. 558,000 people filed new claims for unemployment benefits. That was more than the median estimate of 545,000.

The number of people collecting unemployment fell by 141,000 and that lowers the unemployment rate. That sounds good, but I don't think it is. Most likely, benefits for these 141,000 have run out. So what little money they had coming in is now gone and they've just stopped asking. 

*****The most direct effect of massive unemployment is less spending and less revenues for America's retailers. Wal-Mart (NYSE:WMT) beat earnings but missed on revenue. That basically means Wal-Mart fired a bunch of people to cut costs, then those people spent less at the store.

Overall, retail sales were down 1% in July after a 0.8% rise in June. With the unemployment rate still expected to rise to over 10%, and likely to stay at high levels for a few years, there's not a lot of upside for the retail sector.

*****SmallCapInvestor PRO members are just a few pennies away from knocking down another 100% winner. This time, it's a Chinese organic fertilizer company. The stock has been on a tear for the last month. And despite the fact that it's nearly doubled, the forward P/E is 17 and the PEG ratio is .45. In other words, there are more gains to come.

I have a new special situations report with detailed research on my 100% China winner plus two other high flying Chinese stocks. Click here to get this report now.

And speaking of SmallCapInvestor, we're open for voting for the t-shirt slogan for my first book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks. There are some excellent slogan ideas, and if you'd like to help pick a winner, you can cast your vote for the best slogan at the SmallCapInvestor Facebook page.

Click here to cast your vote now.

The winner gets a full year subscription to all of my advisory services, so if your slogan is in the running, get friends and family to cast their votes so you can take home the top prize.

I'd like to thank SCI Daily readers for helping with the marketing of my first book. You're helping make it a success and I really appreciate it.

*****I probably shouldn't do this, but TradeMaster Daily Stock Alerts technical analyst Jason Cimpl is alerting his readers to breakouts in the biotech sector. A couple names he's watching are Orexigen (Nasdaq:OREX) and Jazz Pharmaceuticals (Nasdaq:JAZZ).

Jason thinks Jazz is good for a 21% move from current levels, so if you're looking for a short-term trade from TradeMaster, this might be a good one.

Be on the look-out for tomorrow's SCI Daily as Jason will once again provide readers with video charting of the week's movements and most importantly, his outlook for how to trade for profits in the coming week. Look for this in tomorrow's issue of SCI Daily.

*****Investors are ignoring short-term weakness in oil demand and focusing on the long-term fundamentals. Oil prices are back over $71 a barrel today despite the highest reserve levels since 1991.

Barclay's expects oil prices to average $76 a barrel in the third quarter. And don't forget, hurricane season is looming. Oil stocks should be bought on dips.

Ian Wyatt
Editor
SCI Daily

China TransInfo Technology Corp (Nasdaq:CTFO), ACADIA Pharmaceuticals Inc (Nasdaq:ACAD) and CNinsure Inc (Nasdaq:CISG) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: AEP Industries Inc (Nasdaq:AEPI), SmartHeat Inc (Nasdaq:HEAT), Innodata Isogen Inc (Nasdaq:INOD), Credit Acceptance Corp (Nasdaq:CACC), Shamir Optical Industry Ltd (Nasdaq:SHMR) and First of Long Island Corp (Nasdaq:FLIC).

Shamir Optical Industry Ltd. (Nasdaq:SHMR), ACADIA Pharmaceuticals Inc. (Nasdaq:ACAD) and Union Bankshares Inc. (Nasdaq:UNB) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: China Yuchai International Ltd. (Nasdaq:CYD), CNinsure Inc. (Nasdaq:CISG), China TransInfo Technology Corp. (Nasdaq:CTFO), Brookfield Homes Corp (Nasdaq:BHS), Elron Electronic Industries Ltd. (Nasdaq:ELRN) and China Marine Food Group Ltd. (Nasdaq:CMFO).

Echelon Corp. (Nasdaq:ELON), Ocwen Financial Corp. (Nasdaq:OCN) and Hutchinson Technology Inc. (Nasdaq:HTCH) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Chindex International Inc. (Nasdaq:CHDX), ACADIA Pharmaceuticals Inc. (Nasdaq:ACAD), Haverty Furniture Co Inc. (Nasdaq:HVT), Crocs Inc. (Nasdaq:CROX), Bank of Commerce Holdings (Nasdaq:BOCH) and Pioneer Drilling Company (Nasdaq:PDC).

Small-cap stocks pushed higher Monday, buoyed by an improved tone in financial shares, a rise in tech stocks and a pullback in crude oil prices from record highs set early in the session. The Russell 2000 (NYSE:IWM) gained 7.12, or 0.97%, to 740.74.

“Financials are strong going into Goldman Sachs earnings tomorrow. Lehman Bros. (NYSE:LEH) also failed to ignite selling and there was a Washington Post story suggesting that the Fed would not tighten rates, which has helped financials,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview.

Kalivas said that investors appeared to be rotating out of some defensive names and into financial stocks. In addition, smaller oil companies and regional banks were helping to provide a lift to small caps relative to the big index products.

Small caps started out the day in the red, pressured by a sudden upside burst in crude oil prices, which charged to new record highs just shy of $140 dollars a barrel. The surge in energy prices was complemented by climbing metals prices and record high corn prices. However, a pullback in crude oil back toward $134 helped ease concerns about energy prices and refocused attention on a solid performance in financial issues.

The U.S. dollar slumped against the euro today, which played a role in supporting the energy market, as well as other commodities. The greenback was pressured by record inflation numbers in the eurozone, a weekend G8 meeting that did not spotlight a strong dollar stance and by talk that rate hikes in the United States have been premature. Goldman Sachs weekly Economics Analyst report said that while they could not rule out a rate hike given recent warnings by Federal Reserve Chairman Ben Bernanke and vice chairman Donald Kohn about inflation expectations that tightening at this stage is “inappropriate” and “unlikely any time soon.”

Goldman Sachs analysts said that “as these points become apparent, we . . .

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 . . .

ACADIA Pharmaceuticals Inc (Nasdaq:ACAD), Tessera Technologies (Nasdaq:TSRA) and Cypress Bioscience Inc (Nasdaq:CYPB) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: CoBiz Financial Inc (Nasdaq:COBZ), Solarfun Power Holdings Co Ltd (Nasdaq:SOLF), Signature Bank (Nasdaq:SBNY), RAM Energy Resources Inc (Nasdaq:RAME), Bancorp Bank (Nasdaq:TBBK) and UAL Corp (Nasdaq:UAUA).

Here are the most actively traded companies among small caps:

Shares of Acadia Pharmaceuticals Inc. (Nasdaq:ACAD) are swooning in pre-market trading after the biopharmaceutical company said this morning that its phase IIb clinical trial for the treatment of schizophrenia failed. The San Diego, Calif.-based firm says it has no plans to conduct further studies using the prospective drug ACP-104 used in the trial.

Shares plummeted 52%, or $4.44, to $4.05 in pre-market trading. For detailed price information and recent news stories about Acadia Pharmaceuticals, click ACAD. 

The Russell 2000 (NYSE: IWM) is posting solid gains on news that central banks around the world are pumping cash into money markets. At 2:33 p.m. ET, the small-cap index was up 7.04 points, or 0.92%, to 773.31. The Dow Jones Industrial Average (INDU) had added 67.14 points, or 0.50%, to 13,499.91.

Small-cap stocks are going strong following news before the start of trading that the U.S. Federal Reserve and four other major central banks are joining hands to inject billions into global money markets to boost liquidity and spur lending.

The U.S. central bank will create a Term Auction Facility program to auction term funds to depository institutions against collateral that can be used to secure loans, according to its statement.

The program will provide banks in good financial condition with billions in short-term funds. The loans will be at rates below the rate charged on direct loans from the Fed to banks but will still be backed by the same type of collateral obligations.

A number of major banks have reduced the flow of credit to businesses and consumers following the meltdown in the subprime mortgage market, which left many financial institutions with billions in losses as foreclosures and loan delinquencies made securities backed by subprime mortgages essentially worthless.

Investors are punishing shares of Acadia Pharmaceuticals Inc. (Nasdaq: ACAD) after the biopharmaceutical company following Monday’s close reported a wider-than-anticipated third-quarter loss as a result of higher R&D costs for initiation of its Phase 3 trials.

For the three months ended Sept. 30, the small cap reported a net loss of $16 million, or $0.43 per share, wider than the $0.38 per share loss 13 analysts surveyed by Thomson Financial had forecasted. The current quarter’s net loss was also wider than the net loss of $11.3 million, or $0.38 per share, recorded in the third quarter of 2006.

Revenues were $2 million, compared with $1.9 million for the third quarter last year.

Brean Murray & Carret analyst Jonathan Aschoff, who downgraded Acadia to “sell” from “hold” today, said he’s skeptical of whether an improved safety profile for the company’s drug pimavanserin in the Phase 2b schizophrenia co-therapy trial is correct. Pimavanserin is the company’s drug candidate for the treatment of Parkinson's disease psychosis.

“We expect that we will begin to see the previously reported robustness fade with full data set to be presented next month at the American Society of Neuropsychopharmacology conference,” Aschoff wrote in a research note today. “We also do not expect a partnership any time in the near future.”

Volterra Semiconductor Corp. (Nasdaq: VLTR) expects net revenue for the second quarter ending June 30, 2007 to be lower than previously forecasted, between $18.5 million to $19.5 million, and a net loss of between $0.04 per share and $0.07, the Fremont, Calif.-based company said after Tuesday’s close.  Analysts were looking for earnings of $0.11 per share.  The stock is down $1.33, or 9%, to $14.07.

Shares of Super Micro Computer, Inc. (Nasdaq: SMCI) are rising following news after Tuesday’s close that the San Jose-based server solutions company has launched a new product line called SuperBlade at an expo in Taipei, Taiwan.

Acorda Therapeutics Inc. (Nasdaq: ACOR) announced it is beginning the third clinical trial phase of its multiple sclerosis drug Fampridine-SR.

ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD) received a bullish mention from MSNBC pundit Jim Cramer Tuesday night.

Taleo Corp. (Nasdaq: TLEO) announced an offering of about 3.1 million shares of common stock priced at $19.85 per share.

After Tuesday’s closing bell, Volterra Semiconductor Corp. (Nasdaq: VLTR) warned second quarter sales are going to be between $18.5 million and $19.5 million, which is lower than its previous guidance.

Neurochem Inc. (Nasdaq: NRMX) announced it obtained written consent from shareholders for the private placement of $80 million in notes.

The following are the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $500 million:

Shares of webMethods, Inc. (Nasdaq: WEBM) are up sharply on news the software provider is being purchased by German company Software AG. Fairfax, Va.-based webMethods will be bought for $546 million in cash, according to news reports this morning. The stock gained $1.82, or, 25%, to $9.10.