Tag - Clct

Income investing has a place in every investment portfolio, and can be used as a strategy for diversification.

Just as importantly, these investments can provide a healthy source of income in periods when the stock market is moving sideways. And contrary to popular belief, investors can reap big profits in income generating investments - including fixed income securities such as bonds.

Given the current market volatility, "safer" income-generating investments are increasingly considered by smart investors.

Small-cap stocks started off the day in negative territory and were never able to recover, even though large-cap stocks pared losses significantly from the intraday lows. Anxiety over the latest version of the financial rescue plan, soft economic data, sluggish consumer, technology and commodity stocks weighed down the Russell 2000 (NYSE:IWM), which slipped 7.99, or 1.18%, to 671.59. For the year, the Russell is down 12.3%, while the Dow is off 18.3% and the S&P 500 is down 20.9%.

The Senate is slated to vote later this evening on a new version of the $700 billion bailout plan, with additions to bank deposits that are insured and tax breaks. There is a strong sense among market watchers that some version of a rescue plan will be approved —  probably as soon as this weekend — but there are also growing fears that the bailout alone won’t fix all the economic ails facing not just America, but also the world.

General Electric Co. (NYSE:GE) plunged after the bell this morning following analyst downgrades overnight. GE is seen as a bellwether for the economy, and when that company is struggling, it can create a downward ripple throughout industrial and consumer stocks. However, after billionaire investor Warren Buffett said he planned to invest $3 billion in GE, the stock did rally off the lows. For the day, GE was off about 4%.

Most of the recent twists and turns in the stock market have been tied to the massive proposed bailout plan, but today economic data started to make a dent in the investor psyche — perhaps stirred by the realization that the big jobs report comes out Friday morning. An early take on the employment situation from private surveys didn’t exactly paint a great picture. Even though the ADP Employment survey was on the low side of the forecast, a report on layoffs by Challenger, Gray & Christmas Inc. showed a 7.2% jump in layoffs last month and a rate that was 33% above year-ago levels. What’s more, analysts at Challenger said that layoffs in the financial sector . . .

Phoenix Co Inc. (Nasdaq:PNX), Greenlight Capital Re Ltd. (Nasdaq:GLRE) and Delta Apparel Inc. (Nasdaq:DLA) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Coleman Cable Inc. (Nasdaq:CCIX), Noble International Ltd. (Nasdaq:NOBL), Collectors Universe Inc. (Nasdaq:CLCT), Lexington REIT (Nasdaq:LXP), Telvent GIT SA (Nasdaq:TLVT) and Crosstex Energy Inc. (Nasdaq:XTXI).

Here are the biggest percentage losers among small caps:

An outsized dividend, rock-solid balance sheet and the growing potential for an operational turnaround make up for several quarters of lackluster performance at this small-cap play.

Santa Ana, Calif.-based Collectors Universe Inc. (Nasdaq: CLCT) may not be well-known on Wall Street, but its various operating units are distinguished in the collectibles industry. Founded over 20 years ago, the $125 million market capitalization company provides authentication and grading services to dealers and collectors of high-value collectibles such as coins, sports cards, autographs and currency. Collectors Universe is also a publisher of various collectibles price guides and is the operator of the Expos Unlimited collectibles trade shows.   

In the fall of 2005, Collectors Universe entered the diamond grading and authentication business with the acquisitions of Gem Certification & Assurance Lab (GCAL) and a complimentary company called Gemprint Corp. Then, in August of last year, Collectors Universe broadened its focus on this new sector with the acquisition of American Gemological Laboratories (AGL), a provider of grading and authentication services for colored gemstones. While Collectors Universe’s new diamond and gemstone grading businesses are filled with promise, they have severely depressed the company’s profitability over the past two years and left investors skittish.

Collectors Universe management now claims that it intends for its diamond grading business to be operating at or near cash-flow breakeven by this holiday season. It expects its younger colored gemstone grading business to take longer to turn the corner. An end to the cash-burning ways of its jewelry grading businesses can’t come soon enough for Collectors Universe investors.

For the fiscal year ended June 30, Collectors Universe saw its revenue increase nearly 10% to $40.5 million (4% of this revenue growth was organic), while posting an operating loss of $0.74 million, or $0.09 a diluted share, compared with an operating profit of $3.4 million, or $0.39 a diluted share, a year earlier. The full-year loss was driven by an increased operating loss of $4.1 million by the jewelry business. Operating cash flow for the year was $3.5 million. This compares with annual cash flow of $7 to $8 million for Collectors Universe from its traditional collectibles businesses before it decided to broaden its focus to the jewelry segment in late 2005.

Collectors Universe, Inc. (Nasdaq: CLCT), which provides authentication and grading services to dealers and collectors of high-value collectibles, diamonds and colored gemstones, reported that it swung to a net loss for its fiscal fourth quarter.

For the three months ended June 30, the Newport Beach, Calif.-based company recorded a net loss of $0.10 per diluted share, compared with net income of $0.10 per diluted share for the fourth fiscal quarter of 2006. Four analysts polled by Thomson Financial were expecting a profit of $0.02 per share.

Net revenues were $10.7, compared with $10.6 million for the same quarter last year. Three analysts polled by Thomson Financial were expecting revenues of $11.63 million. 

Shares of Collectors Universe were halted ahead of the opening bell.

The Russell 2000 and the other major U.S. indices are up on news an index of core inflation is within the U.S. Federal Reserve’s preferred range. At 11:38 a.m. ET the Russell 2000 was up 5.78 points, or 0.69%, to 844.81. The Dow Jones Industrial Average was up 68.69 points, or 0.51%, to 13,490.97.

Shares of Comstock Homebuilding Companies, Inc. (Nasdaq: CHCI) are rising on news the developer of residential real estate has completed the $47.5 million sale of its 316-unit Bellemeade condominium conversion project in Leesburg, Va., to an apartment operator. Comstock expects to generate $1.5 million in cash from the sale and will incur an additional write-off of about $2.0 million, the Reston, Va.-based company said after Thursday’s close. Shares are up $0.21, or 8%, to $2.82.