Tag - Auth

Small-cap stocks remained solidly higher into mid-session trading, but the morning euphoria sparked by the Treasury Department takeover of government-sponsored enterprises (GSE) was losing steam as tech stocks failed to join the party. At 12:42 p.m. ET, the Russell 2000 (NYSE:IWM) was up 9.27, or 1.29%, at 728.12, but well below the morning peak just shy of 740.

Tech shares slipped into the red, pulling down other index products as investors in tech stocks remain concerned that a global slowdown will curb spending on technology and curb investor appetite for the latest, greatest cell phone and personal computer gadgets. In addition to the slide in tech stocks, thrifts were getting absolutely hammered as the market basically gives up hope that preferred stock holders in Fannie Mae (NYSE:FNM) or Freddie Mac (NYSE:FRE) will get anything back, as the Treasury’s takeover appears to be focused on the credit side of things. Still, optimism about the GSE news provided a lift to homebuilding stocks and home furnishing stocks on ideas that it could help put a bottom in the slumping housing market. Also, financial stocks were boosted by ideas their exposure to debt through the GSEs would now be much more secure.

Some of the upside momentum in financial shares was stalled by a big slide in Lehman Brothers Holdings Inc. (NYSE:LEH), which was spooked by fears that valuable firm assets would be sold off at fire sale prices. LEH shares were down some 18%.

In addition to thrifts, coal stocks were getting pounded again today, a theme that has been repeated often in recent days following news that hedge funds with commodity stock ties have been liquidating. Also, steel, mining, aluminum and fertilizer . . .

Shares of AuthenTec (Nasdaq: AUTH) are plunging in pre-market trading after the fingerprint sensors provider lowered its revenue guidance for the third quarter and full year. The company also reduced its earnings forecast for the full year.

AuthenTec attributed the reduction in estimated revenue to an overstocked inventory position at a new customer and the impact of lower than expected sales of higher-end notebooks, which are more likely to be equipped with a fingerprint sensor as a standard or optional feature.

AuthenTec also said a “significant PC customer” does not plan to use its fingerprint sensors in its next design cycle in late 2009. AuthenTec anticipates an impact to its sales will occur in the second half of 2009.

Shares flopped 33%, or $2.09, to $4.30 in pre-market trading. For detailed price information and news stories on AuthenTec, click AUTH. 

Small-cap stocks edged lower Tuesday, with the Russell 2000 (NYSE:IWM) sinking 6.44, or 0.89%, to 718.93. Small caps had plenty of good news to embrace Tuesday, but a wave of sloppy earnings and cautious profit-taking from longs ahead of Wednesday’s FOMC announcement kept the buyers at bay. Small caps noticeably underperformed relative to the Dow and S&P 500, which is a caution signal for the market heading toward huge economic calendar event risk the rest of the week.

Losses were limited by a firm U.S. dollar, which pushed about 0.6% higher versus the euro, rising to the highest point in three weeks. The firm greenback played a role in a sharp retreat in crude oil prices, which tumbled 2.5% in the shadow of yesterday’s record high level. Retail, transportation and airline stocks received a boost from the pullback in energy prices. The commodity spectrum in general was lower Tuesday, with the Commodity Research Bureau Index of commodity prices down 1.8%, pulled lower by the slide in energy and also by a corrective dip in grains a day after corn prices hit record levels.

Within broad market sectors, food retail stocks were up 5%, airlines up 3% and education services were up almost 3%. Meanwhile, fertilizer shares were down 8%, metals and mining were down almost 5%, and agricultural products were down about 4%.

The stock market has been on an impressive upside push since March lows, with the Russell rising about 12%, the Dow up 9.5% and the S&P 500 up about 10%. Given the solid return generated for bulls lucky enough to have caught this brush higher, it’s . . .

Allegiant Travel Co. (Nasdaq:ALGT), TranS1 Inc. (Nasdaq:TSON) and Seacoast Banking Corporation of Florida (Nasdaq:SBCF) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

A.M. Castle & Co. (NYSE:CAS), AuthenTec, Inc. (Nasdaq:AUTH) and Mac-Gray Corp. (NYSE:TUC) are also among the top small-cap percentage gainers.

Here are Tuesday's biggest percentage gainers among small caps:

The Russell 2000 (NYSE: IWM) is deep in negative territory on news of a steep decline in the U.S. services sector. At 1:20 p.m. ET, the small-cap index had retreated 13.35 points, or 1.85%, to 710.11. The Dow Jones Industrial Average (INDU) was off 277.36 points, or 2.20%, to 12,357.80.

The U.S. services sector suffered its biggest one-month decline in seven years in January, falling to a level of 41.9 from 54.4 in December. A reading above 50 indicates an expansion. Economists were expecting the measure to decline to 53.

Services comprise about 75% of U.S. gross domestic product and news of the contraction, the first since March 2003, led to fears of an economic recession.

The numbers tell us that the ripple of economic problems which originally started as a slump in house prices in the second half of 2006, and later spread to the financial sector and to consumers, has now spread even further.

Stocks small and large are falling, with makers of construction products and raw materials leading the way.

AuthenTec Inc. (Nasdaq: AUTH), which provides authentication technology, is down 3% to $13 despite news before the start of trading that it swung to a fourth-quarter profit and increased its revenue 67%.

Sunnyvale, Calif.-based flash memory solutions provider Spansion Inc. (Nasdaq: SPSN) has added 4% to $4.06 on news that it has been upgraded to “buy” from “hold” by Lazard Capital.

On the other hand, BluePhoenix Solutions Ltd. (Nasdaq: BPHX), an Israeli maker of enterprise IT solutions was downgraded by financial services firm Collins Stewart to “hold” from “buy” despite news of a $4 million contract with the government of the United Kingdom.

But the big loser is SiRF Technology Holdings, Inc. (Nasdaq: SIRF), a supplier of global positioning system semiconductor solutions, which got downgraded to “hold” from “buy” after it lowered its fiscal 2008 earnings estimate.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will open with a drop on news of a tech sector downgrade.

Stocks small and large are pointing to a lower opening on news that Banc of America Securities has downgraded Yahoo! Inc. (Nasdaq: YHOO) to “neutral” from “buy,” saying that the Sunnyvale, Calif.-based search engine is struggling to revive its online advertising business and compete with rival Google Inc. (Nasdaq: GOOG).

Additionally, Banc of America Securities thinks that the proposed $45 billion dollar buyout acquisition of Yahoo! by Microsoft Corp. (Nasdaq: MSFT) could face regulatory hurdles, particularly in the 27-member European Union.

Investors will be looking ahead to the Institute for Supply Management’s report on the service sector in January, due at 10 a.m. ET. Economists are expecting to see a small decrease.

The Russell 2000 (NYSE: IWM) futures are pointing south and the small-cap index will most likely fall on news of poor corporate earnings and downgrades.

Investment bank Goldman Sachs Group, Inc. (NYSE: GS) downgraded financial services giant Citigroup Inc. (NYSE: C) to “sell” from “neutral” on fears that it could suffer up to $15 billion in write-downs on collateralized debt obligations over the next two quarters.

The financial services sector has been hit hard by fallout from the meltdown in the subprime mortgage sector, which began after the U.S. housing prices started to stagnate in the second quarter of 2006.

The troubled housing sector is one reason why Lowe’s Companies, Inc. (NYSE: LOW), the nation’s second largest home improvement retailer, announced today that its third-quarter profit fell 10.2%. The Mooresville, N.C.-based company also lowered its fourth-quarter and full-year outlook.

No major economic releases are coming out today.

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:

• Helicos BioSciences Corp. (HLCS), up 10%.
• Micrel, Inc. (MCRL), up 9% on news it has signed a contract to supply commercial solar cells.
• BIDZ.com Inc. (BIDZ), up 6%.

Biggest percentage losers:

• Sify Technologies Ltd. (SIFY), down 15%.
• China Sunergy Co. Ltd. (CSUN) down 5% on news of a wider third-quarter loss.
• AuthenTec Inc. (AUTH) down 4%.

AuthenTec, Inc. (Nasdaq: AUTH)
Melbourne, FL 32901
http://www.authentec.net/

52-week low / high: $9.21 / $16.67
Shares Outstanding:  26.91 million
Market Capitalization:  $445.15 million

In the days of yore (the mid to late ’90s), it would only take the swipe of a badge to gain access to a building or a simple password to log on to a computer. In the wake of the breakneck technology boom this decade, though, security vulnerability is an increased concern—one that’s being satiated with this small cap’s own authentic touch.

Started in 1998, AuthenTec, Inc. (Nasdaq: AUTH) is the world’s leading provider of fingerprint authentication sensors for security and convenience applications. Its products have been integrated into more than 20 million laptops, desktops, peripherals, mobile phones and access control (biometric security) devices.

AuthenTec’s technology captures an image of a fingerprint mathematically and compares it to future images of that same finger. Multiple applications include: cursor control, multiple password replacement, parental control, user switching, applications access and speed dialing.

AuthenTec also sells under the TruePrint technology trademark and sells to original equipment manufacturers, product design firms and contract manufacturers.

In the third quarter 2007, ended Sept. 30, the company reported revenues of $15.1 million, up 84% from $8.2 million in the same quarter of 2006 and up 23% from $12.3 million in the second quarter 2007. The growth rate proves that biometrics is becoming the de-facto standard and the market is accepting AuthenTec’s product.

Net income for the third quarter 2007 was $517,000, or $0.02 per share versus a net loss of $2.6 million, or $2.83 per share, in the year ago period.

Most analysts forecast a strong increase in revenues the coming years, calling for $51.3 million and $73.6 million in 2008. Analysts expect a small net loss per share of $0.05 in 2007, but expect the company to deliver positive net income in 2008, calling for $0.19 EPS in 2008.

While it may be too early to take a swipe at this stock just yet, investors should keep their finger on its future.

Note: AuthenTec, Inc. (AUTH) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, AuthenTec, Inc. displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.

Shares of AuthenTec, Inc. (Nasdaq: AUTH) are higher following news after the close on Thursday that the maker of fingerprint authentication sensors and solutions has signed a distribution agreement with Japanese semiconductor distributor Marubun Corp.

According to the terms of the deal, Marubun will offer AuthenTec’s silicon-based fingerprint sensor products and provide technical and logistical support to the company’s customers.

“We believe this agreement, with one of the most respected representative and distributor firms in the world, adds strength to our global supply chain and enables us to achieve our growth plans in the region at a faster pace,” said Kengo Kobayashi, AuthenTec’s managing director for Japan, in a statement.

Melbourne, Fla.-based AuthenTec’s technology is integrated on electronic devices such as personal computers and cell phones and is activated when the appropriate user runs their finger over the sensor. In a move that shows the increasing consumer acceptance of the technology, the company recently announced that it has incorporated its sensors on a door lock that can be opened with a scan of someone’s fingerprint.

At 12:31 p.m. ET, AuthenTec (AUTH) shares had added $0.15, or 2%, to $10.14.

Staffing and management company Hudson Highland Group, Inc. (Nasdaq: HHGP) cut its second-quarter revenue guidance to between $348 million and $350 million, from between $355 million and $370 million. Wall Street analysts are expecting revenue of $363.2 million for the three-month period.

Touch-technology company Immersion Corp. (Nasdaq: IMMR) was downgraded by Thomas Weisel Partners to “underweight” from “market weight.”

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

Troy, N.C.-based First Bancorp (Nasdaq: FBNC) announced it is buying Great Pee Dee Bancorp Inc. (Nasdaq: PEDE) for approximately $38.2 million in a stock-for-stock deal.

Qiao Xing Universal Telephone Inc. (Nasdaq: XING) announced it’s filing its FY06 report on July 16.

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

Herley Industries, Inc. (Nasdaq: HRLY) reported two of its manufacturing facilities have been suspended from winning federal contracts, pending the outcome of a federal investigation of some deliveries by the company.

Reports that a buyout of Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) hit a snag has sent Trump shares to a 52-week low.

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