Tag - App

The following is a list of today’s winners and losers within the Russell Microcap Index.

Looks like we’re back in the slump we saw pervade October trading. Small caps plummeted 6.12% today and are now down 41% for the year. Today’s small-cap gainers are ATA Inc. (Nasdaq:ATAI), ARYx Therapeutics (Nasdaq:ARYX) and Imperial Sugar (Nasdaq:IPSU).

Other Market Watch highlights today included:

• Anything currently linked to Russia is trouble; the Russian Stock Exchange closed for two days to stem massive selling in Russian equities.
• For 2008, the Russell is now down 41%, while the Dow is off 38% and the S&P 500 is down 42%.
• Including action since mid-September, this was the eighth session sporting a loss of 5% or more.
• Energy and other commodity values remain a bearish element for many stocks right now. 
• Crude oil prices in the U.S. tumbled $3.17 a barrel to $56.16, the lowest closing price since January 2007.
• Copper and aluminum prices slumped to three-year lows in overseas trading (although copper did close slightly higher in U.S. trading). 
• Energy shares were a drag on the market, with the Energy SPDR Fund off 8.1%.

Small Cap Gainers:

• ATA Inc. rallied 19% as the Chinese computer testing firm reported earnings. See (Nasdaq:ATAI).
• ARYx Therapeutics swings to profit in Q3; shares up a whopping 47%. See (Nasdaq:ARYX). 
• Imperial Sugar Co. jumped nearly 15% as the sugar processing firm extended a recent upside push from the October lows. See (Nasdaq:IPSU).
• Embattled Dow component General Motors Corp. was up 5.4% on talk that legislators are warming up to ideas to help provide financial assistance . . .

American Apparel Inc. (AMEX:APP) is the epitome of “edgy,” yet there is a schizophrenic tinge when analyzing the last large-scale clothing company whose labels read “Made in the USA.”

The Los Angeles company wears the badge of abolishing the garment industry sweatshop while managing to keep its prices low. The fashion genius of founder Dov Charney is lauded, but there are allegations made by former American Apparel employees and others about his seemingly offbeat behavior — including sexual-harassment lawsuits. Montreal native Charney was presented this year with the fashion industry’s “Retailer of the Year” award. 
 
Fashion is a sexually charged industry, and American Apparel’s image kicks that up a notch. American Apparel’s first eight months publicly traded have been rocky, with negative publicity piling up like a mountain of tattered tees in a thrift store discount bin. Those distractions make it difficult to peek under the covers at the financial soundness.

Of the three analysts who follow American Apparel, two rate the stock a “strong buy,” and the other calls it a “buy.” The median price target calculated by Thomson Reuters is $14.50.

In a Sept. 8 report to investors, analyst Mickey Schleien of Ladenburg Thalmann sounded impressed by solid same-store sales and its retail store expansion. Schleien also noted a $54 men’s oxford shirt was added, substantially higher than its T-shirts costing around $20. “Expanding the product line may help capture more customers and generate cross-selling opportunities,” wrote Schleien, who reiterated . . .

American Apparel Inc. (AMEX:APP), Community Central Bank Corp. (Nasdaq:CCBD) and Babcock & Brown Air Ltd. (NYSE:FLY) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $750 million.

Endocare, Inc. (Nasdaq:ENDO), Downey Financial Corp. (NYSE:DSL) and FirstFed Financial Corp. (NYSE:FED) are also among the top small-cap percentage losers.

Here are Monday's biggest percentage losers among small caps:

American Apparel Inc. (AMEX:APP) shares are down more than 8% after a weekend story in the Wall Street Journal mentioned accounting weaknesses and $117 million in debt. The Journal story also noted that 15 pages of risk factors in the Jackson, Wyo.-based clothing maker and retailer’s 10K seemed exceptionally long. In a Monday morning note to investors, Lazard Capital Markets reiterated its “Buy” rating on American Apparel’s stock with a price target of $17. The investment bank said the Wall Street Journal story “shed no new light.”

In Monday midday trading, APP shares are down 8.55%, or $0.71, at $7.59. For detailed price information and recent news stories about American Apparel, click APP.

The Russell 2000 (NYSE:IWM) is in negative territory despite mixed economic and financial news.

At 10:12 a.m. ET, the small-cap index was down 1.69 points, or 0.25%, to 686.47. The Dow Jones Industrial Average was down 1.14 points, or 0.01%, to 12,324.28.

Small-cap stocks opened in the red as news of a major bank feeling the pinch from the subprime mortgage debacle apparently outweighed news of unexpectedly strong March retail sales.

Wachovia Corp. (NYSE:WB) reported before the start of trading that it swung to a first-quarter loss. The Charlotte, N.C.-based bank also cut its dividend and said that it will sell common and preferred stock to raise capital.

However, there is also bullish news, coming in the form of a U.S. Census Bureau report before the opening that U.S. retail sales unexpectedly . . .