Tag - Bby

There is no doubt that consumers hurt by the recession want to stretch their dollars. And when it comes to investing in small-cap companies, being a frugal shopper is even more important.

That’s because it’s possible to pay too much for even the best growth stock. In order to make the most of your investment, you need to buy at bargain basement prices.

Finding surplus value is what shopping is all about - regardless of whether you're shopping for shoes, stocks, or really anything imaginable.

The last company to revolutionize counter-top beverage machines saw its stock skyrocket more than 10,000 percent. While that return didn't materialize overnight (it took a decade) the company, Green Mountain Coffee Roasters (Nasdaq: GMCR), is still going strong.

In the quarter ended June 26, 2010, the company’s sales surged 85 percent year-over-year.

Green Mountain Coffee Roasters has enjoyed rapid growth by using the razor-razorblade business model - a strategy in which one good is sold at a discount while the second dependent good is sold for a tidy profit.

Small-cap stocks rejected a morning pullback to close higher on the day, backing up the euphoric FOMC rate cut rally with an impressive showing given early weakness. Tuesday’s FOMC rise was powered by financial and homebuilder stocks, while today’s climb branched out to retailer, selected commodity and telecom names. The Russell 2000 (NYSE:IWM) closed up 3.75, or 0.78%, at 486.59 and is now down 36% for 2008. Meanwhile, the Dow was down 1.12% on the day, and is down 33% for the year, while the S&P 500 was down 0.96% Wednesday and down 38% for 2008.

Action today was noticeably calm after the big rate cut rally Tuesday. Investors were likely pondering just how the Federal Reserve would bolster the economy now that interest rates for short-term loans from the government are basically at zero. One clear path would seem to be buying longer-dated instruments, and Treasury markets were higher throughout the day, although down quite a bit from the morning rise when equities were on thinner ice to start the session.

On the retailer front, Macy’s Inc. (NYSE:M) jumped some 18%, leading the S&P Retail Index to a decent 1.8% gain on the day. Small-cap firms such as Abercrombie & Fitch Co. (NYSE:ANF) rose 3.9%. Retail sales reports have been spotty through this difficult holiday season, but Best Buy Co. Inc. (NYSE:BBY) shot higher Tuesday ahead of the FOMC news on a solid earnings report.

Selected commodity areas provided support to the stock market today, with metals, mining, gold and steel companies counted among the top performing sectors. Some of the bullish edge may have been taken off commodities however as crude oil prices plunged this afternoon, sinking some 8% to the lowest level in more than four years. The sell-off in crude took place right in the face of an announced production cut by OPEC leaders. Perhaps the sting of OPEC’s proposed cut was limited by the fact that non-members Russia and Mexico did not weigh in to support a pullback in production. Interestingly, even though crude oil prices slumped to four-year lows, . . .

Small-cap stocks stormed higher Tuesday, extending a morning rally when investors got word that the Federal Reserve slashed interest rates to the lowest level in history and hinted that they wouldn’t hesitate to utilize other tactics to help jolt the moribund economy out of one of the worst recessions since the Great Depression of the 1930s. The Russell 2000 (NYSE:IWM) rose 30.28, or 6.69%, to 482.35, the highest daily close since Nov. 13. For the year, the Russell is still down 37%, while the Dow is off 33% and the S&P 500 is down 38%.

The FOMC stunned the market by slashing rates by 75 to 100 basis points, well beyond the 50-bp cut that was expected. Policy makers also made no bones about their mission right now: save the economy, worry about prices later. In fact, the Fed’s own statement said they would “employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” With prices sinking as evidenced by today’s CPI report, the clear goal is economic growth. Now that the Fed is basically handing out money free of charge to those with access to the Fed window, the next order of business would appear to be attacking long-term interest rates, either through direct purchases or other means. The action was bold and stock market investors liked the approach.

It will be interesting to see if the heightened focus on long-term rates will provide a spark to the moribund housing market. Housing starts numbers released this morning tumbled to the lowest rate in history and slumped 18.9% on a seasonally adjusted rate. Despite the gloomy picture of the housing market, homebuilder shares took off today, attracting bottom-fishers on hopes that a light at the end of the tunnel . . .

Small-cap stocks extended the rally into mid-session trading, boosted by a bounce in the financial arena, which has been a notable source of weakness in previous days. In addition, homebuilder, retailer and insurance firms were strong performers today and the raft of companies fitting those profiles in the small-cap universe helped the Russell 2000 (NYSE:IWM) outperform the Dow and S&P 500. At 12:31 p.m. ET, the Russell was up 12.84, or 2.84%, at 465.41.

The financial sector got a lift from Goldman Sachs Group Inc. (NYSE:GS), which reported quarterly results that were awful, but which the market embraced as a sign that “the kitchen sink” was tossed into the loss. GS shares were up 9.1% at midday. The Securities Broker Dealer Index was up 5.6% and the KBW Bank Index was up 3.6%.

Homebuilder shares have been on a roller coaster ride lately, but retain a potential bottom on long-term charts and were back on an upside tilt today after sinking on Monday. The ISE Homebuilder Index was up 5.6%, with small-cap firm KB Home (NYSE:KBH) rising 7.1%. It was interesting to see homebuilder shares doing so well today despite a terrible report on housing starts, which tumbled to a record lows and were off 18.9%.

Retail stocks also were doing well today after Best Buy Co. Inc. (NYSE:BBY) reported strong quarterly results and cost-cutting efforts to brace for a potentially sluggish holiday season. BBY shares were up 15.2% today and the S&P Retail Index rose 2.3%.

Another clear source of strength today came from insurance stocks, with the S&P Insurance Index climbing 4.2%. Small-cap firm Genworth Financial Inc. (NYSE:GNW) soared some 40%, climbing to the highest point since early November.

The market now will go into a waiting mode for the 2:15 p.m. ET FOMC policy announcement. The Fed is widely expected to lower the Fed funds target by 50 basis points down to 0.5%, but futures markets are pricing in a 60% chance for a 75-bp cut. The big reaction will likely come from the Fed’s statement, as the . . .

Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon. Financial and banking shares were on the mend today after being noticeably weak in recent days, helping to counter any dread from this morning’s gloomy housing starts report. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 8.22, or 1.82%, at 460.78.

The housing starts report came out at 625,000 units, well off the projected pace of 730,000. What’s more, the percentage decline was a whopping 18.9%, the largest drop since March 1984 and the unit rate was the lowest on record. Clearly, these are awful numbers … bulls might argue this is the bottom, but there is no sign of stabilization yet. The dreadful housing starts report appeared to take some starch out of pre-market index gains. CPI data also came out this morning, with the headline number down 1.7%, which was below the forecast of minus 1.2%. The CPI data were expected to be down with sinking energy costs and weren’t much of a factor for the market.

Now that housing starts and CPI are out of the way, economic watchers will focus on this afternoon’s FOMC statement. It is widely expected that the Federal Reserve will slash another 50 basis points off the Fed funds rate, lowering the rate to 0.50%. The big key will be the language accompanying the statement, as market watchers look for signs that the Fed will explore other options to lower rates beyond the Fed funds target. However, don’t completely discount a potential surprise on the rate cut announcement: this morning, Fed funds futures were actually pricing in a 68% chance for a 75-bp rate cut, and there were some analysts calling for the Fed to go ahead and just put the rate at zero, since they appear to be headed that way anyhow.

On the profit front, Best Buy Co. Inc. (NYSE:BBY) smashed the estimate, . . .

U.S. stocks are expected to open higher, underpinned by gains in European shares and optimism ahead of this afternoon’s FOMC meeting, where the Fed is expected to slash rates once again. A Treasury-led bailout of the auto industry appears set for either today or Wednesday, also providing support. In addition, Goldman Sachs (NYSE:GS) and Best Buy (NYSE:BBY) earnings reports appeared to lift stock index futures in pre-market trading. The Dow is expected to open up about 60 points, while the Russell 2000 (NYSE:IWM) is seen opening up 0.7% to 455.70.

The housing starts report came out at an annualized rate of 625,000 units, which was well below the forecast of 730,000. Housing starts tumbled 18.9%, the largest drop since March 1984 and the lowest unit rate on record. Meanwhile, the CPI came in at minus 1.7%, which was even lower than the minus 1.2% projection, but not a surprise given steep declines in energy costs.

European shares were higher heading toward the U.S. open, but equities were off in Asia overnight. Energy shares were higher in Europe in line with a rise in crude oil prices as the market braces for another output cut from OPEC members this week.

Even though energy markets were on firm footing this morning, industrial metals were lower, including copper, lead, tin and nickel. Coal stocks took a beating overseas, . . .

Small-cap stocks extended the morning rout into midday trading, pulled down by renewed worries about the economy following the worst decline in October retail sales on record, which only heightens fears about consumer spending moving into the key holiday season. At 2:16 p.m. ET, the Russell 2000 (NYSE:IWM) was down 4.29%, on target for the third-lowest daily close in more than five years and the lowest weekly close since August 2003 despite the dramatic recovery explosion from Thursday.

Energy and technology stocks were among the dominant drags on the market, with the Energy SPDR off nearly 5% and the tech-laden Nasdaq 100 down about 4.5%. Within the tech arena, anything tied to the cell phone business was getting hammered following Nokia’s warning that sales would fall far below expectations in coming months. Nokia Corporation (NYSE:NOK) was down 12%, Motorola Inc. (NYSE:MOT) was off 8% and QUALCOMM Inc. (Nasdaq:QCOM), the largest mobile phone chip maker, was down 6%.

Back on the commodities theme, crude oil prices were down about $1.60 a barrel, as worries about global demand persist. Despite the pullback on energy prices, commodities overall were hanging in there today, with the Commodity Research Bureau Index basically flat at mid-session. In general, commodities are way oversold and the U.S. dollar tone is mixed today (up versus euro, down versus yen).

As for retailers, today just isn’t pretty. The S&P Retail Index is down 6% and a host of name-brand companies released earnings today that were either disappointing, or even when solid for the third quarter reflected downward guidance for the coming quarter. Nordstrom Inc. (NYSE:JWN) was down 8%, JC Penney Company Inc. (NYSE:JCP) was down 9% and although the pain was intense for apparel oriented retailers, there was plenty of agony to go around; for instance, home improvement retailer . . .

Small-cap stocks went into freefall mode Wednesday, burdened by new plans for the troubled asset relief program (TARP), ongoing worries about corporate profitability, money flow out of equities into credit markets, further downside probing in commodities to 5-year lows and renewed concerns about consumer spending in a difficult economic environment. The Russell 2000 (NYSE:IWM) closed down 29.49, or 6.12% at 452.80, the second-lowest daily close in more than five years. For 2008, the Russell is now down 41%, while the Dow is off 38% and the S&P 500 is down 42%.

We’ve all become somewhat numb to mind-boggling daily volatility since the collapse kicked into gear, but to give some perspective, if you went back before the stock market crash began in mid-September, today’s slide would have been the largest one-day swoon of the year. Including action since mid-September, this was the eighth session sporting a loss of 5% or more.

The market was already in a fragile frame of mind this morning after Best Buy Co. Inc. (NYSE:BBY) lowered its outlook, which stirred worries about consumer spending heading toward the key holiday season. With two-thirds of the U.S. economy driven by consumer spending, a picture of rising unemployment and a dreary outlook for next year make for a troubling brew. BBY shares lost 8% on the day, while the S&P Retail Index was off 5.7%.

Then after the BBY scare, investor confidence seemed to be shaken even more by the Treasury Department’s decision to scrap the original rescue plans of using $700 billion in TARP funds to buy up toxic debt and instead divert money into more capital injections. Those investor concerns appear to be two-fold: first, there is a perception that the government still is bouncing back and forth trying to put out fires instead of having a deliberate plan of attack to help restore financial solvency. Second, there is a chance that if the government funnels billions of dollars into these financial firms it will dilute share-holder equity. The PHLX KBW Banking Index was off 6.1%.

When the TARP was first approved by Congress back on Oct. 3, the Russell was at 619.40. After putting $350 billion to “work” to rescue the market out of the credit crisis, the Russell is now at 452.80. Clearly, there is still work to be done. And the longer the market struggles the more likely it is that public frustration over . . .

What looked like a sleepy, mild opening dip turned into an ugly downside press, with small-cap stocks pulled down this morning by sloppy corporate profit reports, declines in Asian equities and yet another weak tone on the commodities front. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 6.28, or 1.30%, at 476.00, slipping through intraday chart support along the 480 line.

Economic news overnight out of Europe was bleak, with eurozone industrial production coming below the forecast and the Bank of England projecting a sharp economic contraction next year. Despite the gloomy news, European shares weren’t taking a big hit, but they weren’t exactly charging higher either and for the most part turned lower ahead of the U.S. open. Asian stocks slipped about 1.4% overnight, including a 3.1% slide in India and a 1.4% slump in Japan.

There are no economic reports on tap today in the United States, but banks and government offices are back at work today after the Veteran’s Day holiday Tuesday, which could help volume levels. The international trade data Thursday morning could spark volatility in foreign exchange markets, but the big data event this week comes with Friday’s retail sales report. Treasury Secretary Henry Paulson will hold a media briefing this morning to discuss the $700 billion rescue plan, and comments from that press conference could move financial stocks and the market in general. The presser is slated for 10:30 a.m. ET.

Speaking of retail sales, the big drag on market psychology early today came from electronics giant Best Buy Co. Inc. (NYSE:BBY) which dramatically slashed the forecast for 2009, yet another numbing sign that companies are girding for a very difficult consumer spending environment not just now, but for several months to come. BBY shares were off 10% shortly after the open.

Other individual stocks taking a hit from soft earnings/outlooks this morning include Intrepid Potash Inc. (NYSE:IPI) as the fertilizer firm missed the estimate . . .

Small-cap stocks are expected to open slightly lower Wednesday, pressured by weak earnings results, lowered corporate outlooks and another pullback in Asian stocks overnight. Stock index futures were down about 0.6% ahead of the U.S. open, which suggests a Russell 2000 (NYSE:IWM) opening near 479.50.

Stock futures were hovering near steady levels, but took a turn lower when Best Buy Co. Inc. (NYSE:BBY) lowered its 2009 outlook dramatically. BBY shares were down some 12% in pre-market trading.

Soft themes popped up in on several earnings reports heading into the open, including a variety of businesses such as fertilizer company Intrepid Potash Inc. (NYSE:IPI), which missed the forecast; NBTY Inc. (NYSE:NTY) as the manufacturer of nutritional supplements also missed the forecast; and small-capper sausage and restaurant operator Bob Evans Farms Inc. (Nasdaq:BOBE) lowered its outlook and was off about 2.5% in pre-market trading.

Japan’s Nikkei was down 1.3% overnight, and an index of Asian stocks was off 1.4%; more severe declines were seen in India, which tumbled 3.1% and are down 9.5% . . .

Small-cap stocks opened higher, but soon turned red, unable to sustain a run that was triggered overnight on yet another news report that the Federal Reserve was not likely to raise interest rates anytime soon. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.92, or 0.26%, at 738.82.

The early buying enthusiasm was stoked by relatively positive earnings numbers from financial and consumer “staple” companies, which basically allowed the market to shrug off sloppy economic data.

Ahead of the opening, Best Buy (NYSE:BBY) reported decent earnings — at least compared to market expectations — as did Goldman Sachs (NYSE:GS). Best Buy tried to push higher on the opening, but turned lower within 25 minutes, no doubt disappointing bulls who were hoping that BBY gains would ripple throughout the retail sector. The same “rising tide lifts all ships” theory was in play in the financial sector early as Goldman Sachs shares were up 1.2%, soothing ongoing fears about the credit crunch.

The overnight rally barely felt a ripple initially from the Producer Price Index report, which came in above the forecast at 1.4%. The “core” rate, which excludes food and energy prices, was on target with a gain of 0.2%. Given soaring gasoline and corn prices, excluding food and energy when looking at inflation data seems silly, meaning that the headline PPI was not good news. What’s more, the year-over-year PPI number was at 7.2%, which marked the eighth consecutive month in which that number was above 6%, which hasn’t happened since 1977-1982.

Also on the data front, housing starts came in slightly below expectations at 975,000 units, which marked the worst showing since 1991. And finally, the industrial production report was down 0.2%, well below the median forecast for a rise of 0.1%. At first blush, it looked like investors were going to try to ignore the negative . . .

Small-cap stocks are expected to open higher today, boosted by solid earnings results from big-name financial and consumer companies and by another media report saying that a rate hike is not on the immediate horizon. The Russell 2000 (NYSE:IWM) was up about 0.5% in after-hours trading, and was expected to open near 744.50.

The momentum from overnight gains remained mostly intact despite an upward surprise on the Producer Price Index report, which came in at 1.4%, above the forecast for a rise of 1%. The “core” PPI, which excludes food and energy prices, was pegged at 0.2%, which matched the market’s forecast. The housing starts number was slightly below expectations, and at 975,000 units marked the worst figure since 1991. Building permits were also slightly below the forecast.

Although stock index futures managed to hold on to most of the overnight gains after the “hot” PPI figure and the soft housing starts report, the dollar did edge slightly lower against the euro after the numbers were released. Crude oil prices slipped below $133 dollars a barrel in overseas trading, which will allow investors to focus . . .

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 . . .

Small-cap stocks opened lower, pulled down by a surprising jump in the unemployment rate, which climbed to 5.5%, the highest rate in 3 ½ years. At 9:53 a.m. ET, the Russell 2000 (NYSE:IWM) was down 7.37, or 0.97%, at 755.90.

The headline non-farm payroll figure came in at minus 49,000, which was better than the forecast for a slide of 58,000, but the payroll figure was upstaged by the stunning jobless rate number. Economists had forecast a rise in the unemployment rate to 5.1% from 5%, and a jump of 0.5% is extraordinarily rare. In fact, this marked the biggest monthly jump in the unemployment rate in 22 years.

“The unemployment rate soared in May because of huge surge in the labor force, perhaps because of seasonal adjustment difficulties associated with the ending of the school year,” Steven Wood, chief economist with Insight Economics, said in an email report. “However, this big increase may also have been a catch-up from its slow rise in the past few months. In any event, the number of unemployed has increased by 1.6 million to 8.5 million and the unemployment rate has increased by 1 percentage point to 5.5%. In the post World War II period, every time the unemployment rate has jumped by a full percentage point in the course of a year, the economy has slipped into recession.”

Even the headline figure, which might have been embraced by equity bulls if not for the unemployment rate surge, wasn’t exactly a sign of great things. According to Wood, “The bottom line is that jobs declined in May and the economy has clearly slipped into a mild jobs recession because the housing meltdown and credit market turmoil has spread to the broader economy. Persistent job losses will eventually pull the overall economy into recession.”

This was the kind of head-scratching, out-of-leftfield numbers surprise that can hatch an entire cottage industry of data conspiracy theorists. For now, traders and analysts tilted toward the bullish side of things were explaining away the sudden jump . . .

American consumers are in love with cutting-edge electronics and appliances to enhance their lifestyles. Witness the crowds that piled into stores at the wee hours of Nov. 23, “Black Friday,” through closing time on Christmas Eve.

Heightening the demand for big-screen, flat-panel televisions is the coming age of high-definition television and the switch to digital from analog signals in February 2009.

Despite the potential potholes in a field crowded with some better-known competitors, Midwest chain hhgregg, Inc. (NYSE: HGG) decided to make the leap and became a public company last summer.

The competition among big-box retailers is intense, forcing stores to slice their profit margins razor thin. In addition to sector leaders Best Buy Co., Inc. (NYSE: BBY) and Circuit City Stores, Inc. (NYSE: CC), along with home-improvement chains like The Home Depot, Inc. (NYSE: HD) and Lowe’s Companies, Inc. (NYSE: LOW), there are thousands of independent retailers that are struggling to survive.

For hhgregg, it was a long journey to the New York Stock Exchange for a family-operated company that began selling appliances in its hometown of Indianapolis in 1955. Not limiting its product mix to what can be found elsewhere, hhgregg targets customers who want competitive prices on higher-end goods, ranging from electronics and appliances to office equipment and Serta bedding.

Now a chain of 84 stores, hhgregg reported $1.1 billion in sales, earnings per share of $0.73 and same-store sales growth of 5.5% for its 2007 fiscal year. Unlike many other retailers, hhgregg boasts a mostly full-time sales force that works on commission.

As a result, analysts covering hhgregg mostly offer favorable opinions about its potential. In a Thomson Financial tally of six analysts, five have hhgregg at “buy” or “strong buy,” with a median price target of $19.25. On Thursday, hhgregg closed at $13.41.

The Russell 2000 (NYSE: IWM) managed a late-minute razor-thin gain while the major U.S. indices made solid advances on news of strong earnings and speculation of a rate cut. The small-cap index added 0.33 points, or 0.04%, to 821.72. The Dow Jones Industrial Average (INDU) gained 63.56 points, or 0.46%, to 13,870.26.

On a year-to-date basis, the Russell 2000 has increased 4.36%, while the Dow has added 11.19% and the S&P 500 has gained 8.78%.

The small-cap futures were pointing up before the start of trading following news that New York-based Verizon Communications Inc. (NYSE: VZ), the second largest U.S. telecommunications company, reported that revenue for the third-quarter increased 5.8% to $23.8 billion from $22.5 billion a year earlier.

Contributing to the bullish sentiment were retailers RadioShack Corp. (NYSE: RSH) and Best Buy Co. Inc. (NYSE: BBY), which reported upbeat third-quarter earnings.

Among small-cap companies, North American Galvanizing & Coatings (Nasdaq: NGA) rose on news that third-quarter profit more than doubled, while compact construction equipment maker Gehl Co. (Nasdaq: GEHL) fell on news of a decline in profit.

The major U.S. indices opened in positive territory and stayed there throughout the session.

However, small-caps were the exception. The Russell 2000 moved up initially but quickly stumbled and stayed in negative territory during the majority of the session, battling back into the green with just minutes before the close.

Secrets of the consumer are coming undone, exposed by DemandTec’s breakthrough marketing software. DemandTec, Inc. (Nasdaq: DMAN) leaves little to the imagination: its suite of scientifically infused software  tells retailers and makers of consumer products how to attract sales, price goods, run promotions, mold and predict demand, and drive profits.

Trading publicly since August but started in 1999, DemandTec has grown into a leader of commerce software, sporting a client list of the biggest retailers: Wal-Mart Stores, Inc. (NYSE: WMT), Safeway Inc. (NYSE: SWY), Target Corporation (NYSE: TGT), Best Buy Co., Inc. (NYSE: BBY) and Office Depot, Inc. (NYSE: ODP), among others. It also markets to consumer products companies, including Campbell Soup Company (NYSE: CPB), Cargill, PhilipMorris and Johnson & Johnson (NYSE: JNJ).

Even DemandTec would find it hard to better shape its own returns since its initial public offering at $11 per share. Its shares have rallied 50% in a little more than two months, closing Friday at $16.59. The high so far is $18.55 on Oct. 10, hit as the company rallied after second-quarter returns released Oct. 4 exceeded analyst expectations. Its market capitalization has grown to more than $420 million.

Revenues in the second quarter of fiscal 2008 ended Aug. 31 rose 40% from the previous year to $14.7 million. Sequential growth was 11% from the first quarter. The company gets its revenues from customer agreements that cover the use of DemandTec’s software and services that go with it. Revenue is recognized over the term of the agreement, which tends to run two to three years. On a non-GAAP basis, the quarterly loss was $0.02 per share, versus a penny gain in the same quarter a year earlier.

DemandTec also pleased investors by projecting revenues for full fiscal 2008 of $60.2 million to $60.7 million—up 40% year-over-year. The San Carlos, Calif.-based company said on its quarterly conference call that earnings for the year would be $0.07 to $0.08; in the third quarter, DemandTec expects to earn $0.03. 

“DemandTec’s consumer demand management solutions are clearly resonating within the retail and consumer goods verticals and we believe that the company is in the early stages of a multi-year growth opportunity,” analyst Jason Maynard at Credit-Suisse wrote in a research note following the conference call. Maynard repeated his “outperform” rating, saying that the company’s second-quarter results reaffirmed a very attractive small-cap growth story.

Businesses big and small often have a difficult time keeping track of their employees. Whether their workers are tethered to a computer screen, holding down a spot on an assembly line, or out in the field making sales and service calls, most companies depend on software solutions to assist in their scheduling and work-force management.

Given the complexities of doing business in the 21st century, ClickSoftware Technologies (Nasdaq: CKSW) is successfully selling products that simplify labor management to businesses of all sizes in North America, Europe and other regions, including Asia. Its business partners that help cross-sell ClickSoftware wares to their customers include International Business Machines Corp. (NYSE: IBM), Accenture Ltd. (NYSE: CAN), Microsoft Corp. (Nasdaq: MSFT) and SAP AG (NYSE: SAP).

In the past year, investors have seen the stock price of the Israel-headquartered company more than double, with plenty of hiccups along the way, but where can it go from here?

ClickSoftware Technologies, which bases its U.S. operations in Burlington, Mass., has a mature suite of software products reflected in the roster of big companies that have adopted them: Best Buy Co., Inc. (NYSE: BBY), Xerox Corporation (NYSE: XRX), Ericsson, Vodafone Group Plc (NYSE: VOD) and several large utilities, to name a few. The ClickSoftware offerings help with shift planning, workload forecasting, wireless work force management and business analytics.

During a July 11 presentation at the C.E. Unterberg, Towbin Emerging Growth Conference, ClickSoftware’s chief financial officer, Shmuel Arvatz, outlined how Best Buy was using his company’s products since the electronics retailer became a customer in late 2006.

If you've ever filled up your gas tank, ordered a meal at a fast-food drive-through or even bought a vehicle from an automotive dealership, chances are you have unwittingly contributed to the success of a little-known small cap.
 
The reason: LSI Industries Inc. (Nasdaq: LYTS), based in Cincinnati, Ohio, supplies indoor and outdoor lighting fixtures, signage, menu boards, LED displays, digital billboards and sports screens to the petroleum/convenience store, multi-site retail (including automobile dealerships, restaurants and national chain stores) and the commercial and industrial lighting markets.

LSI's client list reads like a veritable Who's Who in big business: Ford Motor Company (NYSE: F), General Motors Corporation (NYSE: GM), DaimlerChrysler AG (NYSE: DAI), Exxon Mobil Corporation (NYSE: XOM), BP plc (NYSE: BP), Chevron Corp. (NYSE: CVX), ConocoPhillips (NYSE: COP), McDonalds Corp. (NYSE: MCD), Burger King Corporation (NYSE: BKC), Wal-Mart Stores, Inc. (NYSE: WMT), Best Buy Co. Inc. (NYSE: BBY), CVS Pharmacies, Inc. (NYSE: CVS), Target Stores (NYSE: TGT)...the list goes on.

LSI's creations do the seldom-thought-of, but highly important job of providing essential illumination for businesses and strategic visibility for their products and services. Some of the company's more popular specialty designs are custom backlit menu boards, indoor and outdoor signs and graphics, decorative light fixtures, solid-state LED displays, and most recently, digital billboards.
 
Since having its stock downgraded to "sell" from "hold" by Matric USA analyst Daniel Scalzi on June 22 (after which the stock tumbled from more than $18 a share to $16.40), the visual image-solutions company has been lighting up far more than the usual. In late June, following news that the rollout of re-imaging programs by several large clients would boost the company's fourth-quarter and fiscal year results beyond expectations, LSI began grabbing attention, in a good way.