Tag - Chmp

The Russell 2000 (NYSE:IWM) is posting solid gains after recovering from its earlier losses.
 
At 11:23 a.m. ET, the small-cap index had added 3.94 points, or 0.55%, to 714.59. The Dow Jones Industrial Average was up 10.18 points, or 0.08%, to 12,664.54.

Small-cap stocks began moving sharply higher and broke into positive territory at about 10:30 a.m. ET, despite news of U.S. Federal Reserve chairman Ben Bernanke’s generally pessimistic testimony in front of the congressional Joint Economic Committee.

“It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke said. News of the bearish assessment was largely responsible for stocks opening in the red.

The Fed chief also said that disposable-income growth has slowed while inflation has remained a concern; however, the economy could improve later in 2008.

“We expect economic activity to strengthen in the second half of the year, in part as the result of stimulative monetary and fiscal policies,” Bernanke said. Some observers . . .

The Russell 2000 (NYSE:IWM) is rallying, having gained more than the other major U.S. indices. At 1:58 p.m. ET, the small-cap index had added 8.81 points, or 1.29%, to 691.99. The Dow Jones Industrial Average was up 85.81 points, or 0.70%, to 12,302.21.

Stocks small and large are rising as investors are apparently reacting to the Bush administration’s plan to overhaul financial regulation to prevent future crises like the ongoing subprime mortgage mess.

The proposal, outlined by U.S. Treasury Secretary Henry Paulson after the opening, would broaden the powers of the U.S. Federal Reserve and allow it to oversee financial services beyond banks. Additionally, oversight of U.S. securities and futures markets will be centralized under a single regulatory body.

The plans will take years to implement, Paulson said.

Shares of companies offering printing services are currently the best-performing industry group. Among the winners is Champion Industries, Inc. (Nasdaq:CHMP). Shares of the Huntington, W.Va.-based commercial printer and supplier of office products are up 1%.

Similarly, brand image solutions company Schawk Inc. (NYSE:SGK) is also seeing its stock price rise.

Switching gears, shares of Seattle, Wash.-based Zymogenetics Inc. (Nasdaq:ZGEN), which makes therapeutic proteins, are sagging.

“We believe ZGEN could trade down to around $5 to $6 on a soft launch . . .

Champion Industries, Inc. (Nasdaq: CHMP) shares are soaring after the commercial printer and office products supplier reported a 20% fourth-quarter profit boost. For the three months ended Oct. 31, Champion’s quarterly net income climbed to $2.4 million, or $0.24 per share, above analyst estimates of $0.18 per share and from $2 million, or $0.20 per share, a year earlier. Revenue during the same period increased 12% to $41.3 million, higher than the consensus estimate of $36.95 million and from $37 million during 2006.

“I am pleased to announce that in 2007 we set record earnings for the first, third and fourth quarters, as well as record full-year earnings,” CEO Marshall T. Reynolds said in a statement.

The Huntington, W. Va.-based company said lower printing and furniture expenses, along with a lower effective tax rate, powered its strong performance. During the quarter, Champion acquired the Huntington, W. Va.-based daily newspaper The Herald-Dispatch.

“This was a strategic move to capitalize on a unique opportunity in our backyard, which should provide numerous expansion and growth opportunities,” Reynolds said.

In recent trading, CHMP shares are surging 22.39%, or $1.03, at $5.63. Over the last 52 weeks, shares have ranged from $4.45 to $10.