Tag - Cmtl

Calgon Carbon Corp. (Nasdaq:CCC), American Apparel Inc. (Nasdaq:APP) and BancTrust Financial Group Inc. (Nasdaq:BTFG) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Lincoln Educational Services Corp. (Nasdaq:LINC), Quidel Corp. (Nasdaq:QDEL), Educational Development Corp. (Nasdaq:EDUC), Comtech Telecommunications Corp. (Nasdaq:CMTL), Koss Corp. (Nasdaq:KOSS) and Ocean Shore Holding Co. (Nasdaq:OSHC).

Comtech Telecommunications Corp. (Nasdaq:CMTL), Axsys Technologies Inc. (Nasdaq:AXYS) and D&E Communications Inc. (Nasdaq:DECC) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Stepan Company (Nasdaq:SCL), Spartan Stores Inc. (Nasdaq:SPTN), Center Bancorp Inc. (Nasdaq:CNBC), Value Line Inc. (Nasdaq:VALU), Old Point Financial Corp. (Nasdaq:OPOF) and Adams Resources & Energy Inc. (Nasdaq:AE).

Comtech Telecommunications Corp. (Nasdaq:CMTL), AeroVironment Inc. (Nasdaq:AVAV) and United States Lime & Minerals Inc. (Nasdaq:USLM) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Silver Standard Resources Inc. (Nasdaq:SSRI), Minefinders Corp Ltd. (Nasdaq:MFN), Michael Baker Corp. (Nasdaq:BKR), Isramco Inc. (Nasdaq:ISRL), DrdGold ADR (Nasdaq:DROOY) and Axsys Technologies Inc. (Nasdaq:AXYS).

Radyne Corporation (Nasdaq:RADN) shares rose slightly ahead of the bell Monday after it was announced that Comtech Telecommunications Corp. (Nasdaq:CMTL) had been given an early termination for its waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Comtech offered to purchase all issued and outstanding shares of Radyne’s common stock for $11.50 per common share. Radyne closed at $10.95 on Friday but was up 4.2% to $11.41 in pre-market trading on Monday. The deal is set to expire on July 15.

Radyne is a Phoenix-based producer of satellite, microwave and cable communication networks. Comtech is a Melville, N.Y-based communication solutions manufacturer.

Small-cap stocks took flight Monday, with the Russell 2000 (NYSE:IWM) climbing to the highest daily close since Jan. 3, as investors shifted out of a range of other assets to pour money into equities. In addition, the rally likely triggered a wave of buy-stop orders from shorts that were unwilling to take a stand as the market once again approached fresh move highs. The Russell finished out Monday’s action up 13.18, or 1.83%, at 733.23.

The market appeared to embrace overnight gains in overseas equities, especially a rise in the largest European bank, HSBC, which was seen as a sign that the credit crunch worries are subsiding. On the U.S. side of things, Bank of America (NYSE:BAC) was up over 2.2%, but Citigroup (NYSE:C) shares struggled to hold ground. In addition, there was a renewed gush of merger giddiness on reports that Electronic Data Systems (NYSE:EDS) was a takeover target for Hewlett-Packard Co. (NYSE:HPQ). EDS was up nearly 28% before an afternoon trading halt, while HPQ was off about 5%.

Small-cap issues clearly paced the way on Monday’s rally, a move that was foreshadowed Friday when small caps eked out a minor gain even though large-cap indices lagged in the red. In recent years, small caps have tended to lead the way on rally moves, especially during the bull market run from 2002 to 2007.

The dollar jumped against the yen, but lost ground versus the euro. In all, the currency market action Monday appeared to be a net positive for equities, with some traders explaining away the lost ground against euro as a result of carry trades into high yielding FX markets.

Stock market investors also appeared to breathe a sigh of relief that crude oil prices were tame to start the week, with crude oil down about $2 a barrel from a fresh morning record peak. Given a large mass of economic data still to come this week, it will be interesting to see if equities can look past the crimped consumer purchasing power stoked by record-high energy prices.

Speaking of the data smorgasbord, the first big number of the week comes out Tuesday morning in the form of retail sales. In addition, Federal Reserve Chairman Ben Bernanke will speak on liquidity measures before the opening. With more . . .

Stocks continued their assent midday, as oil slipped, the greenback gained and investors shrugged off lackluster earnings news from bond insurer MBIA.

At 12:49 p.m. ET the Russell 2000 (NYSE:IWM) was up 1.34%, or 9.63, to 729.68 while the Dow had gained 0.79%, or 100.79, to 12,846.67.

Oil futures continued to slide midday as investors locked in gains from last week. A crude oil contract for the month of June was off roughly $1.21 midday to $124.75, down from the $126 level breached last week.

As oil futures sold off, the dollar rallied against other major currencies, quelling inflation concerns.

Just this morning Chicago Fed President Charles Evans said that housing was still a drag on the economy, and that growth risks were to the downside, but inflation risk was on the upside. Evans also said that U.S. growth should improve in the second half of the year, but that tight credit markets would crimp near-term GDP.

In corporate news, the financial sector is making headlines today. Investors shrugged off MBIA’s (NYSE:MBI) first-quarter results, as the bond insurer swung to a first-quarter loss on account of $3.58 billion unrealized loss on insured derivatives. Shares rallied.

Shares of Radyne Corp. (Nasdaq:RADN) are soaring this morning after the communications equipment company said it will be acquired by Comtech Telecommunications Corp. (Nasdaq:CMTL) in an all-cash transaction for $223.6 million, or $11.50 per share. The purchase price represents a 33% premium over Radyne's average closing price over the last ninety trading days.

Shares leaped 44%, or $3.44, to $11.18 at 10:05 a.m. ET. For detailed price information and recent news stories about Radyne, click RADN. 

When people in China talk to each other, they use cell phones—a lot. According to the Chinese Ministry of Information Industry (MII), 487 million people were using mobile phones by April of this year, 100 million more than the number of people using fixed lines. The market is growing by 60 million new subscribers a year; 20% of owners replace their phones each year.

That has given a huge boost to Comtech Group, Inc. (Nasdaq: COGO), a Shenzen-based electronics module supplier to cell phone makers and other Chinese electronic equipment makers. In the second quarter, the company’s pro-forma net income was up 53% from a year earlier to $6.06 million, on revenues up 22% to $50.6 million.

As a result, the company’s stock has been hotter than Fergie ringtone downloads in the last couple months. From a 52-week low of $13.45 in early August, it hit a high of $21.85 on Oct. 11. The market cap of this company is now pushing the definition of “small,” having recently risen to just over $800 million.

Six out of seven analysts following the company have “buy” recommendations. One reason for continued optimism is that in 2008, China plans to begin rolling out a 3rd-generation wireless system and Comtech has been developing modules to feed the appetite of this fast, internet-enabled system. A May report by Roth Capital Partners notes that the company is “well-positioned to benefit from China’s 3G rollout and continued strength in China’s core electronics markets.”

A word of caution: do not confuse Comtech Group with U.S.-based Comtech Telecomm. Corp. (Nasdaq: CMTL). Google searches on Comtech Group bring up news of multi-million dollar deals signed by Comtech Telecomm. Despite similar names and markets, the companies are not related.