Tag - Aria

Stocks continued Thursday's rally as investors reacted to news about the second quarter GDP number with the Nasdaq the exception.

 

The Dow closed up 16.93 to finish the week at 9,171.39; the Nasdaq finished down at 1,978.50, losing 5.80 points after showing gains for most of the day; and the S&P 500 close up 0.72 points to finish at 987.47.

 

Stocks in the Russell 2000 closed down 0.09 points to end at 557.71. 
 

Leading small-cap gainers include VirnetX Holding (AMEX:VHC) up 112%; Anadys Pharmaceuticals (Nasdaq:ANDS) up 44%; Inovio Biomedical (AMEX:INO) up 38%; and Integra Bank (Nasdaq:IBNK) up 34%.

 

Small-cap decliners were lead by notebook computer parts maker Synaptics (Nasdaq:SYNA) down 33% on news that the firm had disclosed fiscal 2010 growth will be slower than expected. Analysts immediately downgraded the stock driving prices down immediately at the open.

 

Other small-cap decliners include iStar Financial (NYSE:SFI) down 19%; Ariad Pharmaceuticals (Nasdaq:ARIA) down 18%; and YRC Worldwide (Nasdaq:YRCW) down 17%.

*****Today was the big one. Say what you want about yesterday's rally, the reaction to this morning's 2Q GDP number should be expected to influence trading going forward.  

Now, I'm going to let TradeMaster Jason Cimpl's morning commentary to his traders provide the in-depth analysis to the GDP number:  

Second quarter annualized rate GDP was reported at -1.0%, compared to the consensus of -1.5%.  

First quarter GDP was revised lower to a 6.4% decline from the previous reading of a decline of 5.5%. Personal consumption fell 1.2% (the consensus had been 0.5%). 
This market might be crazy enough to ignore the downward revision from the previous quarter, but how can they possibly brush off that personal consumption reading? 
Personal consumption is the largest portion of GDP. This number should have investors concerned. 

Volume numbers today will be a big tell if the street really likes the GDP figures. At the end of the day, GDP is a lagging indicator, so don't expect that today is the game changer. 

Thanks, Jason. 

He's got his Friday video online where he'll do a quick recap of the market for the week and more importantly, provide guidance on market direction and action for the coming week. Click here to watch Jason's video analysis.

*****Deutsche Bank (NYSE:DB) CEO Josef Ackerman says "The crisis is not over." He told Bloomberg that "[b]ad loans are the next wave. Banks that have fared relatively well so far will also be affected by this." 

As evidence, problem loans at Deutsche Bank rose 44% on the last quarter. Deutsche Banks has raised its loss reserves to $1.4 billion and also reduced its balance sheet and risk-taking.  

*****I continue to view oil as a critical leading indicator for global economic recovery. So long as oil prices remain strong, investors are clearly ignoring current demand statistics and focusing instead on future demand and slack production growth.  
For instance, Europe's third largest oil company, Total SA (NYSE:TOT) reported that production fell 7.3% in its 2nd quarter. That puts Total's production back to year 2000 levels.  

The reason is obvious: demand is down, and Total, like most oil companies, is cutting back on investment in new production because prices are down.  

Despite a slight rise in production, Chevron (NYSE:CVX) reported a 51% drop in revenues. It would seem likely that the revenue shortfall will affect Chevron's investments in new production, too.

The big question, though, is if investors will shift their focus to current demand numbers. At some point, declining profitability and continuing economic weakness should bring oil prices down.

*****It's pretty clear now that trends like weak GDP, weak demand for oil, rising unemployment we've seen emerging from the financial crisis and recovery will be with us for a long time.

Clearly, these conditions will have a profound effect on your investments in the months and years ahead.

And because many of these conditions are a direct result of government bailouts, I'm calling the condition Managed America.

We're hosting a video conference to look forward to investing strategies for the remainder of 2009 and beyond, and to explore my concept of Managed America and how you can still make profitable investments. The U.S. economy has changed and investors need to understand the changes in order to make the best investments.

The Managed America video conference will air on August 10, 2009 at 6:00 P.M. You can register for this important event when you click HERE.

Best Regards,

Ian Wyatt
Editor
Daily Profit

 

 

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

After trading down for most of today's session stocks edged up toward the close to finish up.

The Dow finished at 9,108.51, up 15.27 points; the Nasdaq was up 1.93 point to close the day at 1,967.89; and the S&P 500 was up 2.92 points to end at 982.18.

The Russell 2000 was up 2.42 points to finish strong at 550.88.

Leading small-cap price gainers was Select Comfort Corp. (Nasdaq:SCSS) up 46% on news that while sales for the second quarter of 2009 were down compared to the same quarter in 2008, operation income was positive net losses were substantially less. The company reported that Q2 operating income was $1 million.

Other leading small-cap gainers include Cerus Corp. (Nasdaq:CERS) up 45%; Jazz Pharmaceuticals (Nasdaq:JAZZ) up 44%; Ariad Pharmaceuticals (Nasdaq:ARIA) up 42%; and Harleysville National Corp. (Nasdaq:HNBC) up 38% on news that it would be acquired by First Niagara (Nasdaq:FNFG) for $237 in an all stock deal. The deal values HNBC at roughly $5.50 per share, representing a 37.5% premium over Friday's closing price for HNBC.

*****Earnings season has been overwhelmingly positive so far. Only 16% of the S&P 500 companies that have reported so far has missed expectations. 75% have beaten expectations. That's what happens when earnings estimates are so low that they are virtually impossible not to beat. 

But what's happening now is very interesting…

Analysts are raising their earnings estimates considerably. Bloomberg reports that forward revisions to estimates now put the forward P/E of the S&P 500 at 13.13. That's 26% below the 50-year average 16.54.

So are we due for a 26% rally as stocks return to their historical norms?

*****If earnings season finishes with 75% of the S&P 500 exceeding expectations, that would be a record. Since 1933, no more than 72% of the S&P 500 has beaten earnings expectations.

But Bloomberg also reports that just half of the S&P 500 companies that have reported have beaten revenue expectations. That means much of the earnings surprises we've seen are a product of cost-cutting and not rising revenues.

To the bears, this suggests there is still risk for stock prices.

*****To the bulls, it's now clear that pessimism went way too far. Stocks were priced way too low for a disaster that never materialized. More and more strategist-types are coming out and saying things like the economy is stronger than the numbers show and that a V-shaped recovery is underway.

Some economists are even raising their 3rd quarter GDP estimates.

Federal Reserve Chief Ben Bernanke states that the economy will be in stronger footing. And this is an interesting point. Overinvestment in real estate is being written off and prices are falling to levels that make sense for the family budget and the business bottom line. Increased regulation will keep investors' money safer (we hope). Increased savings will put consumers on stronger footing.

In essence, the U.S. economy will, at some point, start growing from a much lower baseline. And while the stock market may only recover the gains it lost over the last two years, that recovery process would lead to some phenomenal gains from current levels.

*****The question for me is: when? I can't help but think that analysts may be overshooting on the upside, just as they overshot on the downside. And I'm pretty sure I'm not the only one who feels this way. Consider that existing home sales jumped 11% in June, and yet stocks are in the red so far today.

There can be no doubt that such a jump in home sales is unexpected good news. But stocks are ignoring it. I say that's because there's a lot of good news priced in already. 

*****So I may be cautious, but I'm going to do what I have been: buy quality stocks, watch them closely and take profits. That approach has been working great so far this year… 

*****TradeMaster Daily Stock Alerts readers just took another 19% gain on MYR Group (Nasdaq:MYRG). Nice work, Jason. If you missed Jason's video chart analysis from Friday, you can check it out HERE. 

*****Now let's have a look at the economic data for the week.

Tomorrow, Tuesday, June 28, we get the Case-Shiller Home Price Index and Consumer Confidence numbers. Wednesday, it's Durable Goods and Oil Inventories. Jobless Claims are out on Thursday.

Friday is the big one, with the release of Second Quarter GDP. This should be a major market mover.

Best Regards,

Ian Wyatt
Editor
SCI Daily

I've been a long-standing fan of biotech expert John McCamant; however, I've been an even longer-term fan of his father, James McCamant, a pioneer in biotechnology whose research I've followed since the early 1980s.
 
In a rare interview in their Medical Technology Stock Letter, John turned to his father for his insights into the current state of the biotech market as well as some of his current favorite stocks in the sector:
 
"We recently sat down with James McCamant. Though he has since transitioned to the position of editor-at-large, Jim is still heavily involved in the biotech sector, and without question, we sleep easier at night with the knowledge that we have the full capacity to draw upon Jim's wisdom and experience, at any time.
 
"Jim pointed to the enormous detrimental impact that short-selling has had on the sector. Hedge funds have been actively and rampantly shorting individual biotech stocks, using manipulation to scare individual investors with the hope of increasing the profits on their short sale.
 
"Since the hedge funds that are primarily responsible have very large amounts of capital, they can live with the frequent large losses. This pattern has led to, in some cases, catastrophic haircuts in individual biotech stock prices.
 
"The point here is not to dwell on short-selling, per se. We mention it again because it has played a key role in creating what has become the interesting and unusual biotech investment opportunity that Jim sees.
 
"That is, there has never been a period before in the history of the biotech sector where we have had so many cheap stocks. In fact, we are in an extremely attractive situation right now in which several companies could rise 50% from their current valuations and still be at the beginning stages of a more major upward move.
 
"The process of shifting investor sentiment is often a difficult one, and usually takes a lot longer than we think it will, or even should, for that matter. However, keep in mind that when sentiment does shift, and it will, investors will likely be underestimating the upside.
 
"As Jim strongly pointed out, the stock market is presenting an unusual opportunity. There are currently more biotech stocks selling at prices which . . .

Shares of Ariad Pharmaceuticals Inc. (Nasdaq: ARIA) are gaining ground ahead of the opening bell after the developer of medicines to treat cancers reported that it has agreed to a special protocol assessment with the U.S. Food and Drug Administration for its oral deforolimus in patients with metastatic sarcomas, aggressive cancers of connective tissue in the body.

Ariad, which has partnered with Merck (NYSE: MRK) in the development of deforolimus as a treatment for cancer, said it expects to begin patient enrolment for the trial later this month.

Deforolimus is a small-molecule inhibitor of the protein mTOR, a “master switch” in cancer cells. Ariad said blocking mTOR creates a starvation-like effect in cancer cells.

Shares of Ariad jumped 6.98%, or $0.33, to $5.06 ahead of the opening bell.

The Russell 2000 (NYSE: IWM) is gaining and the Dow Jones Industrial Average (INDU) is looking for another record close following economic news that eases inflation concerns.

At 10:05 a.m. ET the Russell 2000 had added 3.39 points, or 0.40%, to 851.86. The Dow Jones Industrial Average was up 34.06 points, or 0.24%, to 13,985.04.

The U.S. producer price index, which tracks the price of domestically produced goods, fell at a seasonally adjusted rate of 0.2% in June, the Labor Department announced before the start of trading. Economists were calling for a rise of 0.1%.

Energy products fell 1.1%, while the index for finished goods other than foods and energy increased 0.3% in June.

That’s an indication that inflation has not picked up despite a tight labor market and the rising price of oil.

In other economic news, industrial production in June added 0.5%, above the projected rise of 0.3%, the U.S. Federal Reserve said before the opening bell.

Total industrial production for the second quarter of 2007 has advanced at an annual rate of 2.9%, more than twice the rate of 1.1% during the first three months of the year.

The Russell 2000 (NYSE: IWM) has dipped into negative territory but the Dow Jones Industrial Average (INDU) is up as stocks are trending lower after news of deal-making.

At 10:12 a.m. ET the Russell 2000 had lost 3.18 points, or 0.37%, to 852.59. The Dow Jones Industrial Average was up 22.27 points, or 0.16%, to 13,929.52.

In corporate news, Glendale, Calif.-based pancake restaurant operator IHOP Corp. (NYSE: IHP) will buy casual diner Applebee’s International, Inc. (Nasdaq: APPB) for about $2.1 billion in cash, which includes the assumption of debt. Applebee’s shareholders will get $25.50 a share.

IHOP plans on selling most of Overland Park, Kan.-based Applebee’s 521 company-owned restaurants to franchisees. Applebee’s has more than 1,900 system-wide restaurants, while IHOP has about 1,300. The acquisition is expected to close in the fourth quarter.

The following were the most actively traded companies in Monday’s trading among those with market capitalizations under $500 million:

 

The Russell 2000 (NYSE: IWN) and the Dow Jones Industrial Average (DJI) are on track for a second day of record closes. At 3:12 p.m. ET the Russell 2000 was up 0.47 points, or 0.05%, to 855.65. The Dow had added 49.67 points, or 0.36%, to 13,911.40.

Shares of ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) are down despite news the Cambridge, Mass.-based company will team up with heavyweight Merck & Co., Inc. (NYSE: MRK) to develop an experimental cancer treatment. The new medication will attempt to block the growth of cancer cells by starving them, according to an Associated Press report after Thursday’s close.

The Russell 2000 (NYSE: IWM) is down but the Dow Jones Industrial Average (DJI) is up as stocks are mixed on news of a decline in June retail sales and conflicting economic data.

At 10:25 a.m. ET the Russell 2000 had lost 3.68 points, or 0.43 percent, to 851.50. The Dow Jones Industrial Average was up 10.81 points, or 0.08 percent, to 13,872.54.

June retail sales fell 0.9%, the most in almost two years, the U.S. Commerce Department reported before the opening bell. Economists were forecasting a drop of 0.1%. On Thursday, retailers surprised many by announcing generally positive same-store sales in June, leading to a rally.

Elsewhere, the higher price of oil contributed to a 1% rise in June import prices, according to the Labor Department before the start of trading. Wall Street was calling for a rise of 0.6%.

The news this morning was not all bad. The monthly University of Michigan said that its consumer sentiment index rose to 92.4 in July, exceeding the projected rise to 86. The index was at 85.3 in June.

The following were the most actively traded companies in Friday’s trading among those with market capitalizations under $500 million:

Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) said the FDA has essentially rejected its hepatitis C drug. Idenix is “not optimistic” about the drug’s future prospects, CEO Jean-Pierre Sommadossi said.

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

Cambridge, Mass.-based ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) has entered into an agreement with industry giant Merck & Co. (NYSE: MRK) to develop and commercialize a new cancer treatment, the company said this morning. Merck will pay the drug developer $75 million upfront, up to $452 million in milestone payments and up to $200 million in sales bonuses. The stock is up $0.20, or 3%, to $6.25.

Shares of Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) are down following news after Wednesday’s close that the electronic components maker saw its fiscal third quarter net sales decline unexpectedly. The stock is down $0.38, or 2%, to $16.77.

Ariad Pharmaceuticals, Inc. (Nasdaq: ARIA) reported it is entering a joint development deal worth more than $1 billion with Merck & Co. (NYSE: MRK).

Sify Limited (Nasdaq: SIFY) reported it is partnering with Microsoft (Nasdaq: MSFT) to bring Internet and information technology services to India.

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

Stocks are down following sour earnings reports from major players as cautious investors await a speech by U.S. Federal Reserve Chairman Ben Bernanke.

At 10:26 a.m. ET the Russell 2000 had lost 6.56 points, or 0.77 percent, to 846.68. The Dow Jones Industrial Average had shed 53.41 points, or 0.39 percent, to 13,596.56.

Fed Chairman Ben Bernanke will talk about inflation when he addresses the National Bureau of Economic Research this afternoon. Stocks will most likely fall and the chances of a cut in the federal funds rate will all but evaporate should the head of the U.S. central bank suggest that inflation remains a worry.

Elsewhere, Atlanta-based home improvement retailer Home Depot Inc. (NYSE: HD) announced this morning that its earnings for the year will fall more the previously forecast due to weakness in the U.S. housing sector.

Similarly, retailer Sears Holdings Corp. (Nasdaq: SHLD) reported this morning that same store sales for the nine-week period ended July 7 dropped 3.9% at its Kmart stores and 4% at its domestic Sears stores.

The following were the most actively traded companies in Tuesday’s trading among those with market capitalizations under $500 million:

Shares of Ocean Bio-Chem Inc. (Nasdaq: OBCI) are soaring on news this morning that the Fort Lauderdale, Fla.-based maker of a line of appearance and maintenance products for boats saw its sales for the second quarter of 2007 rise to $5.72 million from $4.33 million a year earlier. Analyst estimates were not available. The stock is up $0.92, or 53%, to $2.65.

Kensey Nash Corp. (Nasdaq: KNSY) has decided to reduce its costs by cutting all activities on its embolic protection platform, the Exton, Pa.-based provider of medical technology solutions announced this morning. Embolic protection devices serve to capture and/or remove debris created after coronary surgery. Shares are up $1.68, or 6%, to $29.00.

Physicians Formula Holdings, Inc. (Nasdaq: FACE) lowered its Q2 sales guidance to $21 million, from $22 million.

Ariad Pharmaceuticals, Inc. (Nasdaq: ARIA) reported a federal court ruled in its favor in a patent infringement case against Eli Lilly and Co. (NYSE: LLY).

Medical technology company Kensey Nash Corp. (Nasdaq: KNSY) reported it’s ceasing embolic protection activities. The closing of the operations will cost the company $5.1 million, or $0.28 per share, which will be recorded in the 2007 and 2008 fiscal years.

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

Wall Street kicked off to a bullish opening as investors anticipate the start of the quarterly earnings season.

At 9:59 a.m. ET the Russell 2000 had added 0.17 points, or 0.02 percent, to 852.48. Dow Jones Industrial Average was up 27.24 points, or 0.20 percent, to 13,638.92.

The following were the most actively traded companies in Monday's trading among those with market capitalizations under $500 million:

Seattle-based Jones Soda Co. (Nasdaq: JSDA) reported that it won exclusive rights to a Japanese natural ingredient for a new energy drink.

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

B. Riley & Co. downgraded footwear retailer The Finish Line, Inc. (Nasdaq: FINL) to “neutral” from “buy” with a target price of $15, from $13.

Vical Inc. (Nasdaq: VICL) reported that preliminary late-stage trial results showed a drug candidate successfully treated the blood flow disease ischemia by increasing the size of blood vessels.

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

The major U.S. indices opened flat or in negative territory following news of another steep drop in Shanghai’s stock market.

At 10:03 a.m. ET the Russell 2000 was up 0.01 points to 853.42. Dow Jones Industrial Average had lost 26.66 points, or 0.20 percent, to 13,641.45.

The Shanghai Composite Index tumbled 8.3%, its biggest drop since the 9% decline on February 27. Unlike the previous sell-off, which was prompted by fears the government would take steps to curb speculative trading, there is no apparent single trigger for the latest decline.

In business news, the Bancroft family that controls the majority of the Dow Jones & Co. (NYSE: DJ) will meet with Rupert Murdoch today to discuss his $5 billion bid.

The following were the most actively traded companies in Monday's trading among those with market capitalizations under $500 million:

Shares of Cray Inc. (Nasdaq: CRAY) are sagging following news this morning that the Seattle-based computer company believes that 2007 revenue associated with one of its key products will likely be less than previously anticipated. CEO Peter Ungaro said the company will most likely not be profitable in 2007 because total revenue will be at or below $200 million. Shares are down $0.01, or 0.13%, to $7.94.

Palo Alto, Calif.-based pharmaceutical company Telik, Inc. (Nasdaq: TELK) reported on Sunday, June 3, that its drug TELCYTA, a treatment of advanced ovarian cancer and non-small cell lung cancer, did not meet the primary endpoint of the Phase III trial.

San Diego-based Accredited Home Lenders Holding Co. (Nasdaq: LEND) announced it will be acquired by Lone Star Funds for $15.10 per share, or about $400 million, in cash. The mortgage banking company said the deal is expected to be closed in the third quarter ending Sept. 30.

Telik, Inc. (Nasdaq: TELK) announced results from the third phase in a study of the biopharmaceutical company’s lung cancer drug Telcyta Assist-2. The Palo Alto, Calif.-based business said the trial missed the primary endpoint.

Biopharmaceutical company Immunomedics, Inc. (Nasdaq: IMMU) announced that treatment with the Morris Plains, N.J.-based business’ cancer drug Epratuzumab along with chemotherapy is well tolerated and feasible in children with a type of leukemia.

Cambridge, Mass.-based Ariad Pharmaceuticals, Inc. (Nasdaq: ARIA) reported patient enrollment for the third trial phase of the company’s AP23573 cancer drug will be delayed to the third quarter ending Sept. 30.

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

Ariad Pharmaceuticals Inc. (Nasdaq: ARIA) announced Friday it has filed a counter-claim against Amgen Inc. (Nasdaq: AMGN) and Wyeth (NYSE: WYE) in a patent infringement suit.

In April 2006, Amgen filed a lawsuit against Cambridge, Mass.-based Ariad, which develops drugs to treat cancer. Amgen’s goal was to nullify a patent of Ariad’s in order to protect its Enbrel arthritis drug.

Later in the year, Ariad unsuccessfully sought to have the lawsuit dismissed.

Ariad Chairman and CEO Dr. Harvey Berger said his firm’s counter-claim illustrates Ariad’s “strong belief in the validity and enforceability of” its patent.

Shares of Ariad Pharmaceuticals Inc. (Nasdaq: ARIA) were up $0.08, or by 1.8%, to $4.52 in after-hours trading Friday after the company announced it has filed a counter-claim against Amgen Inc. (Nasdaq: AMGN) and Wyeth (NYSE: WYE) in a patent infringement suit. In April 2006, Amgen filed a lawsuit against Cambridge, Mass.-based Ariad, which develops drugs to treat cancer. Amgen’s goal was to nullify a patent of Ariad’s in order to protect its Enbrel arthritis drug. Later in the year, Ariad unsuccessfully sought to have the lawsuit dismissed. Steep legal fees associated with the lawsuit contributed to Ariad posting a nearly $62 million loss during the fiscal year ending Dec. 31, compared with a $55.5 million loss in fiscal 2005. Ariad Chairman and CEO Dr. Harvey Berger says the suit illustrates the firm’s “strong belief in the validity and enforceability of” its patent.