Tag - Arun

Trubion Pharmaceuticals Inc. (Nasdaq:TRBN), Echelon Corp. (Nasdaq:ELON) and Stewardship Financial Corp. (Nasdaq:SSFN) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Poniard Pharmaceuticals Inc. (Nasdaq:PARD), Aruba Networks Inc. (Nasdaq:ARUN), OncoGenex Pharmaceuticals Inc. (Nasdaq:OGXI), OmniVision Technologies Inc. (Nasdaq:OVTI), Martha Stewart Living Omnimedia Inc. (Nasdaq:MSO) and Sinovac Biotech Ltd. (Nasdaq:SVA).

Allos Therapeutics Inc. (Nasdaq:ALTH), Novavax Inc. (Nasdaq:NVAX) and OmniVision Technologies Inc.(Nasdaq:OVTI) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Immunomedics Inc. (Nasdaq:IMMU), Aruba Networks Inc. (Nasdaq:ARUN), Sequenom Inc. (Nasdaq:SQNM), Century Aluminum Co. (Nasdaq:CENX), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and Canadian Solar Inc. (Nasdaq:CSIQ).

ClickSoftware Technologies Ltd. (Nasdaq:CKSW), NeurogesX Inc. (Nasdaq:NGSX) and Clearwater Paper Corp. (Nasdaq:CLW) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: JMP Group Inc. (Nasdaq:JMP), Health Fitness Corp. (Nasdaq:FIT), Aruba Networks Inc. (Nasdaq:ARUN), Multimedia Games Inc. (Nasdaq:MGAM), Bridgepoint Education Inc. (Nasdaq:BPI) and Rentrak Corp. (Nasdaq:RENT).

AgFeed Industries Inc. (Nasdaq:FEED), Canadian Solar Inc. (Nasdaq:CSIQ) and Allos Therapeutics Inc. (Nasdaq:ALTH) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Star Bulk Carriers Corp. (Nasdaq:SBLK), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), OncoGenex Pharmaceuticals Inc. (Nasdaq:OGXI), Vanda Pharmaceuticals Inc. (Nasdaq:VNDA), Yadkin Valley Financial Corp. (Nasdaq:YAVY) and Aruba Networks Inc. (Nasdaq:ARUN).|

Small-cap stocks opened lower, pulled down by profit-taking from hot money traders who caught the big rally Tuesday, a batch of soft private employment reports and reticence ahead of Washington’s latest vote on the financial bailout package. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.65, or 1.27%, at 670.94.

Although the market is starting to take more notice on the economic data front ahead of Friday’s big jobs release, the lion’s share of attention is still squarely on the surprisingly uncertain world of politics and the proposed $700 billion bailout of Wall Street after House Republicans voted down a bill authored by the Republican administration. The latest version of the bill — with new “extenders” included, is up for a Senate vote later today. Although nothing is certain in politics, especially in an election year, there is a sense among market watchers that some version of the rescue plan will be approved by the end of the week.

As for the economic reports already in hand this morning, stock index futures appeared to briefly extend overnight declines after the ADP Employment survey showed a decline of just 8,000 jobs last month, which was better than the forecast for a slide of 60,000. Even though the number would seem supportive, August was revised downward slightly and traders are well aware that the ADP number has not been tracking well with the Labor Department release, which is slated for Friday morning. A consensus of economists is forecasting the Labor Department to show a decline in non-farm payrolls of 100,000 and an unemployment rate of 6.1%.

In other economic news, the ISM Manufacturing Survey came out at 10:00 a.m. ET, and the headline figure was at 43.5, which was well below the projection of 49.8. The dollar gave up some of its overnight gains after the weak ISM figure, interest rates pushed higher and Fed funds futures edged above a 50% chance for a . . .

Tom O’Halloran is a partner and director of Small Cap Growth Investments at Lord Abbett. He is responsible for managing the firm’s small-cap and micro-cap growth products, overseeing the investment teams, and directing the investment strategies.

O’Halloran has been in the investment business for 20 years. Prior to joining Lord Abbett, O’Halloran was an executive director and senior research analyst at Dillon Read/UBS Warburg from 1988 to 2001. Before beginning his career in the financial services industry, he was a trial lawyer from 1980 to 1986. O’Halloran earned an MBA from Columbia University, a JD from Boston College and an AB from Bowdoin College. He also is a holder of the Chartered Financial Analyst designation.

What qualities do you look for in a small-cap stock? Have your criterion changed given the current macro environment?

“There are 3,000 stocks that we look at that we could own. We try to screen out 80% of those through growth hurdles and size parameters in terms of market cap, and financial strength in terms of debt-to-asset ratios. Then we look at the 600 or so, or 20%, of the names. The first inquiry is a two step process after that. First we identify the best businesses then we pick stocks based purely on their growth, not on takeover potential, turnaround potential or valuations. Organic growth is the best kind of growth, but if there’s a strategy of acquisitions that is multi year and sensible to supplement their organic growth, then that’s fine. We require 12% minimum top-line growth, and we want earnings to be growing at least as fast. Our portfolio on average is growing closer to 25%. 

“In terms of what represents a good business, we’re looking at four things: the first two at the microeconomic level, or inside the doors of the company, and three and four are considering the environment in which they function.

1) “When we saw Morningstar at $750 million on the IPO, we said, ‘This is like Moody’s. Moody’s is $20 billion. This is a jewel of a business.”  We saw Mercadolibre, Inc. (Nasdaq:MELI) at $1 billion and we said, “This is the eBay of South America. This is a great business.’  

2) “Is it a good business? Does it have a strong management team? Is the management competent and credible? It’s very important at the small-cap level to have good management. [In terms of] competency, we look at Mickey Drexler at J. Crew. He worked magic at The Gap. He redefined casual clothing in America. He’s a genius of a retailing executive and an example of a highly competent . . .

Small-cap shares opened flat and then edged higher, underpinned by news of a big-cap energy acquisition, a firm tone in the dollar, and ideas that Wednesday’s post-FOMC minutes slide was overdone. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 2.46, or 0.34%, at 729.56.

News that NRG Energy (NYSE:NRG) tendered a bid to buy Calpine Corp. (NYSE:CPN) for a stock deal worth $11 billion injected some enthusiasm back into the M&A picture this morning, and played a supportive role in market psychology. Calpine shares were up 7.1% shortly after the opening on the news. If there are large-cap merger deals to be done, then there are certainly bargains to be had within small caps.

There are several apparel retailers coming out with earnings today, which could ripple through the markets. Children’s Place Retail Stores (Nasdaq:PLCE), which is right on the upper end of small-cap market capitalization, reported solid quarterly results this morning and the stock was up 6.2% right after the open.

Large caps in the news early today include Pfizer Inc. (NYSE:PFE), which tumbled 1% on the opening on news that its anti-smoking drug had serious side effects. Also, NetApp Inc. (Nasdaq:NTAP) tumbled 5.7% as the company’s forward projections disappointed.

Crude oil prices shot above $135 dollars a barrel overnight, and continue to be a drag on the both the consumer pocketbook and the cost structure for corporations (just ask the battered airline industry). Goldman Sachs technical analyst Kevin Edgeley said in a research report overnight that crude oil momentum and trend strength are pointing higher, and that there is a long-term channel extension target for crude at $142.90. If crude oil were to close lower today, and well off that $135 record overnight peak, it could generate a topping reversal on charts, and is worth . . .

Shares of Aruba Networks (Nasdaq:ARUN) are taking a hit today and are hovering near their 52 week low after JP Morgan downgraded the security technology company to “underweight” from “neutral” on concerns surrounding the company’s sales cycle length and shrinking order sizes in light of the dismal macroeconomic backdrop. 

JP Morgan analyst Ehud Gelblum said he thinks lengthening sales cycles and shrinking order sizes could retard the entire wireless local area network (WLAN) market and pressure Aruba’s margins for the rest of 2008. The analyst said he expects the retail segment to be hit the hardest, as it is one of the largest, and as he expects the economic downturn to continue through to 2009.

As a result, the analyst is reducing his 2008 growth forecast for the dependent WLAN market by five points to 28% from 33%, as spending on WLAN is the most discretionary in the realm of IT projects, according to Gelblum.
 
He now predicts that the company’s 802.11n roll-outs will take longer than expected and could be delayed until 2009.

Additionally, Gelblum said as Aruba invests in international expansion and development of a two-tier distribution system, it could take longer to achieve its 19% to 20% long-term operating margin target.

“We expect elongated sales cycles and shrinking order sizes to plague Aruba through much of 08 … resulting in an increased probability of future earnings misses,” Gelblum wrote in a research note today.

On account of the lower WLAN market outlook and margin pressure, Gelblum lowered his fiscal 2008 and third-quarter revenue and earnings guidance. For the third quarter ending April 30, 2008, the analyst lowered his earnings . . .

The Russell 2000 (NYSE:IWM) opened in the green but quickly lost steam despite news of mixed economic reports.

At 10:12 a.m. ET, the small-cap index had let go 5.07 points, or 0.72%, to 697.04. The Dow Jones Industrial Average (INDU) had advanced 1.63 points, or 0.01%, to 12,424.49.

Small-cap stocks opened higher but could not maintain their grip despite news before the start of trading that fourth-quarter gross domestic product increased as expected.

The economy rose at the previously announced annual pace of 0.6% in the last three months of 2007, according to the U.S. Commerce Department. The numbers match economists’ expectations.

Economic growth during the entire 2007 year was 2.2%, the slowest in five years.

Elsewhere, the U.S. Labor Department reported before the opening that jobless claims for the week ended March 22 fell 9,000.

The Russell 2000 (NYSE: IWM) futures are up and small caps will probably open higher on news that fourth-quarter economic growth was unchanged.

Gross domestic product increased at the previously announced annual pace of 0.6% in the last three months of 2007, the U.S. Commerce Department reported before the opening today. The data match economists’ projections.

Economic growth during the entire 2007 year was 2.2%, the slowest in five years.

Wednesday looked a lot like Tuesday, at least in terms of the trading range in the Russell 2000. The only difference was a soft close on Wednesday, with small caps dipping 3.16, or 0.45%, to 702.11. Despite the sleepy action Wednesday, daily charts show some interesting patterns, which puts a little more edge on Thursday’s action.

Look for support at 696, then at 685 and 680. Meanwhile, resistance comes in at 706, 717 and 724. The calendar is fairly quiet Thursday, with Weekly Claims data at 8:30 a.m. ET, and a few speeches by Federal Reserve officials during the session.

Aruba Networks, Inc. (Nasdaq:ARUN), provider of security technology for data, voice and video across networks, said this morning that it has made an agreement with Dell (Nasdaq:DELL) to offer customers mobility services to simplify wireless network planning and implementation services.

Dell will offer Aruba's full product line to healthcare, federal government, state and local government and primary, secondary and higher education customers. Shares slid 6.9%, or $0.42, to $5.65 in pre-market trading.

For detailed price information and recent news stories about Aruba Networks, click ARUN. 

Shares of Aruba Networks, Inc. (Nasdaq: ARUN), which delivers the enterprise network to users, have fallen to a new 52-week low on news of a disappointing second-quarter earnings forecast.

The Sunnyvale, Calif.-based company announced after the close on Thursday that it expects revenue for the second fiscal quarter ended Jan. 31 to be between $40 million and $41 million, while net income is expected to be break-even.

Twelve analysts polled by Thomson Financial were calling for revenues of $51.5 million.

“During the second quarter, we experienced a significant decrease in revenues in the Federal vertical in conjunction with the delay in the approval of the federal budget,” said president and CEO Dominic Orr in a statement. “We believe our Federal business will pick up in the second half of our fiscal year.”

“Aruba ‘bit the January-quarter dust’ for a variety of reasons,” wrote analyst Eric Kainer ThinkEquity Partners in a research note today. “However, we believe that Aruba will be seeing the positive impact soon from the main driver of WiFi growth going forward — voice.”

The Russell 2000 (NYSE: IWM) is seesawing up and down as the small-cap index continues to trade with no clear direction.

At 10:56 a.m. ET, the small-cap index had added 3.68 points, or 0.52%, to 706.46. The Dow Jones Industrial Average (INDU) had gained 10.25 points, or 0.08%, to 12,257.25.

Trading is volatile as investors are looking for direction on a day with no major economic news. The mood in pre-market trading was slightly bearish following news that an official from the U.S. Federal Reserve said that the economy is headed for a slowdown.

“I consider it most probable that the U.S. economy will experience slow growth, and not outright recession, in coming quarters,” said Janet Yellen, president of the Federal Reserve Bank of San Francisco, in a speech in Honolulu.

Elsewhere, the U.S. Congress approved a $152 billion economic stimulus package that consists of tax rebates and business incentives that will hopefully prevent a recession.

The small-cap index has been swinging up and down since opening in negative territory, but shares of Coinstar, Inc. (Nasdaq: CSTR) established a clearly upward trajectory.

The Bellevue, Wash.-based company, which claims that it invented self-service coin counting, is rising high on news that fourth-quarter adjusted earnings beat Wall Street’s projections.

Shares of Photon Dynamics, Inc. (Nasdaq: PHTN) are also rising following news that the maker of technology facilitating the production of flat panel displays reported a first-quarter loss that was not as bad as analysts had projected.

On the other hand, Aruba Networks, Inc. (Nasdaq: ARUN) said that it will miss second-quarter estimates.

The Russell 2000 (NYSE: IWM) futures are a hair below the close level on Thursday and the small-cap index will probably open lower.

There is little in the way of economic news today, so stocks will probably be looking for direction. Officials from the U.S. Federal Reserve are set to speak later today and investors will be looking for clues about future monetary policy.

The buyers emerged again on Thursday, lifting the Russell 2000 10.29 to 702.78, just above the 20-day moving average. Key support remains at 688 and 680, but if the latter is breached, the market could slide quickly toward 671. On the upside, resistance comes in today at 712 and 721.

The release of the wholesale inventories data at 10:00 a.m. ET shouldn’t generate much of a response from the stock market, leaving traders time to focus on fundamentals, technicals and election issues into the weekend.