Tag - Cown

Savient Pharmaceuticals Inc. (Nasdaq:SVNT), WSP Holdings Ltd. (Nasdaq:WH) and M & F Worldwide Corp. (Nasdaq:MFW) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Shamir Optical Industry Ltd. (Nasdaq:SHMR), Meta Financial Group Inc. (Nasdaq:CASH), Pain Therapeutics Inc. (Nasdaq:PTIE), Atlas Pipeline Holdings L P (Nasdaq:AHD), Cowen Group Inc. (Nasdaq:COWN) and NxStage Medical Inc. (Nasdaq:NXTM).

Software developer Wind River (Nasdaq:WIND) is the small cap leader today posting a 44% gain as of press time, 1:15 P.M. Eastern, on news of its acquisition by industry giant Intel (Nasdaq:INTC).

With the deal expected to close during the summer, Intel has committed to a price of $11.50 per share. As of this writing, shares of Wind River are going for $11.53. This certainly follows my thesis of technology, in addition to healthcare and energy, leading small caps for the foreseeable future.

Another big small cap gainer for today includes investment banker Cowen Group (Nasdaq:COWN) up 28.5% on news of its impending merger with Ramius, LLC, a privately held asset management firm. The new company will retain the Cowen name and is expected to continue trading on the Nasdaq.

Other small cap gainers include First Industrial Realty Trust (NYSE:FR) up 37.9% on news of closing three secured financial transactions for $154 million; Atlas Pipeline (NYSE:APL) up 16.1% to $7.57 (you'll recall Atlas was a big winner yesterday after announcing it's joint venture with Williams (NYSE:WMB). Since Friday's close, Atlas has rewarded investors with a 44% gain.

Small cap decliners include Abercrombie (NYSE:ANF), maker of popular clothing directed to the youth market, posting a loss of 10.6% in today's trading after reporting same store sales had fallen 28%; Northeast Bancorp (Nasdaq:NBN) of Lewiston, Maine, down 14.7%; and The Gap (NYSE:GPS) down 7.9% on reporting that sales fell 6% versus one year ago.

All major indices are reporting positive gains as of press time with the Russell 2000 Index up 1.12% to 528.56, the Dow up 0.70% to 8,735.80, the S&P 500 up 0.96% to 940.74, and the Nasdaq up 1.07% to 1,845.37. Analysts attribute much of this to reports showing that the number of unemployed still receiving benefits dropped unexpectedly for the first time in nearly five months.

Also big in today's news was crude oil hitting another high for 2009. New York Mercantile Exchange oil hit $69.56 in earlier trading today, meaning that crude oil is now nearly twice as expensive as it was in February.

Note: I've recently released a report on three small cap oil plays that will take advantage of crude oil's drive to even higher prices this year. In fact, one of these stocks has already given investors a nice 148% gain since we added it on March 30th. And there's still more action with this and the other two stocks. You can request your copy of the report HERE.

*****Yesterday, Ben Bernanke told the House Budget Committee:

"In recent weeks, yields on longer-term Treasury securities and fixed-rate mortgages have risen…[t]hese increases appear to reflect concerns about large federal deficits…"

Hmmm. I would swear that Treasury Secretary Geithner just told China that rising interest rates were a sign of optimism for the U.S. economy. Can rising rates be both good and bad? All I know is that if you listen to government long enough, anything and everything is possible.

Rising interest rates on Treasury bonds mean that prices are falling. Whether you're talking dollars or doughnuts, prices tend to fall when there's oversupply. And right now, with the Federal government raising trillions to fund stimulus spending and budget deficits, there's a more-than-adequate supply of T-bills.

Competition also affects interest rates, or yields, on T-bills. If the arcane valuation formulas running on server banks in the basement of some hedge fund say that the stock market is likely to post an 8% gain, few managers will get too excited about the 5% return on long bonds. That 5% yield must rise (with the price of the bond falling) to entice buyers.

So when Geithner says that rising yields indicate optimism, he's telling the truth to a degree. Yes, now that the economy is recovering a bit, investors believe that stocks are a better investment than bonds. And that's good. But one reason stocks are attractive is because bonds are so unattractive.

*****I suspect the Chinese know all this. They probably also know that they benefit by lending us money. Heck, if Chinese money delays the hard choices long enough, they may ascend to the throne of world's largest economy sooner than expected. 

*****Bernanke also took the opportunity to warn Congress about rising deficits. He said "Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth."

Let's not forget Bernanke has supported the policies that got us where we are. Now let's see what he proposes to help get us out of this mess.

*****The last time I made the observation that the news cycle was turning negative, we saw stocks consolidate their recent gains, instead of turning lower.

Well, it seems to me that the news cycle is starting to turn negative again. 

Bernanke repeated his belief that the recession is ending, but the financial media chose to latch on to his statement that recovery will be slow. Improving manufacturing data was deemed "not-as-good-as-expected."

Will this lead to a sell-off, another period of consolidation, or will more positive data emerge to keep the markets moving higher? I don't know, but I am on alert…

That's it for today.

P.S. One way to help insulate your portfolio (particularly if you're retired or even if it's a few years off) from the government's loose monetary policy is by holding dividend stocks. These stocks give you a regular payout and have tremendous upside. Be sure to check out my new research report with five such winning stocks right now. You can get it HERE.

Wind River Systems Inc. (Nasdaq:WIND), Cowen Group Inc (Nasdaq:COWN) and Rogers Corp. (Nasdaq:ROG) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Conn's Inc. (Nasdaq:CONN), Dyncorp International Inc. (Nasdaq:DCP), G-III Apparel Group Ltd. (Nasdaq:GIII), US Global Investors Inc (Nasdaq:GROW), Greene County Bancorp. (Nasdaq:GCBC) and Bio-Reference Laboratories Inc. (Nasdaq:BRLI).

Cowen Group Inc. (Nasdaq:COWN), Tier Technologies Inc. (Nasdaq:TIER) and Basic Energy Services Inc. (Nasdaq:BAS) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: FBL Financial Group Inc. (Nasdaq:FFG), Vitran Corp Inc. (Nasdaq:VTNC), Eagle Bulk Shipping Inc (Nasdaq:EGLE), TNS Inc. (Nasdaq:TNS), Penford Corp. (Nasdaq:PENX) and Clearwater Paper Corp. (Nasdaq:CLW).

DryShips Inc. (Nasdaq:DRYS), UAL Corp. (Nasdaq:UAUA) and Solarfun Power Holdings Co Ltd (Nasdaq:SOLF) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Canadian Solar Inc. (Nasdaq:CSIQ), BreitBurn Energy Partners L P (Nasdaq:BBEP), Hawaiian Holdings Inc. (Nasdaq:HA), Cowen Group Inc. (Nasdaq:COWN), James River Coal Co. (Nasdaq:JRCC) and Dendreon Corp. (Nasdaq:DNDN).

Here are the most actively traded companies among small caps:

The Russell 2000 (NYSE: IWM) is in negative territory following news of poor economic data.

At 10:11 a.m. ET, the small-cap index was missing 6.07 points, or 0.85%, to 710.37. The Dow Jones Industrial Average (INDU) was down 96.39 points, or 0.76%, to 12,597.89.

The U.S. Commerce Department reported before the opening that it has reaffirmed its initial estimate for fourth-quarter economic growth of 0.6% at an annual rate. Economists were expecting an upward revision to 0.8%. The economy grew 4.9% during the third quarter.

The price index for personal consumption increased 4.1%, compared with the previously estimated 3.9%. That’s a worrying sign that inflation is not moderating despite the slowing economy.

Separately, the U.S. Labor Department said that jobless claims for the week ended Feb. 23 were 373,000, a larger-than-expected increase from the preceding week’s upwardly revised level of 354,000.

Small-cap stocks are moving down, with PharmaNet Development Group Inc. (Nasdaq: PDGI) being among the top losers.

The Princeton, N.J.-based drug development services company reported fourth-quarter earnings above analysts’ expectations, but is suffering due to its disappointing full-year 2008 forecast.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices declined for the second day in a row on news of bearish economic reports. The small-cap index fell 3.80 points, or 0.54%, to 701.52. The Dow Jones Industrial Average (INDU) declined 28.77 points, or 0.23%, to 12,348.21.

On a year-to-date basis, the Russell 2000 has let go 8.42%, while the Dow has shaved 6.91% and the S&P 500 has fallen 8.06%.

The session belonged to the bears as news of government reports that showed a weak economy and hinted at a rise in inflation spooked investors.

The U.S. Labor Department reported that import prices jumped 1.7% in January due to higher energy and food prices. Economists had projected a rise of 0.5%. The year-over-year rise in import prices was 13.7%, which is the biggest change since the measure was introduced in 1982.

The United States has long relied on cheap foreign imports to keep domestic inflation low.

Adding to the economic worries was news of a report from the New York Federal Reserve that its index of general business conditions fell to its lowest level since May 2005. The numbers show that new manufacturing orders and shipments decreased while the index of prices climbed to its highest level in more than a year.

The reports suggest that the U.S. Federal Reserve might have difficulty holding inflation in check while keeping the economy growing.

Separately, preliminary numbers released by the Reuters/University of Michigan indicate a sharp drop in consumer sentiment in early February. The index fell to a level of 69.6 from 78.4 at the end of January. The result was worse than the decline expected by economists and the lowest reading in 16 years.

Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:

The Russell 2000 (NYSE: IWM) is posting gains as investors hold their breath ahead of the U.S. Federal Reserve’s decision on interest rates. At 2:01 p.m. ET, the small-cap index was up 3.81 points, or 0.48%, to 795.01.The Dow Jones Industrial Average (INDU) had added 33.09 points, or 0.24%, to 13,760.12.

Stocks are in positive territory as investors wait for the Fed to announce its decision on monetary policy. Financial markets are expecting to see the federal funds rate lowered at least 0.25%. More bullish voices are calling for a decline of 0.50% or even 0.75%.

The U.S. central bank’s target interest rate now stands at 4.5%. In its latest two meetings, the Fed lowered the rate a cumulative 0.75% in order to help the U.S. economy get through a rough patch caused by declining home prices and the financial aftershocks of the subprime mortgage meltdown.

“The U.S. economy is now in the danger zone,” says a report released today by forecasting company Global Insight. The Boston, Mass.-based firm’s “Top-10 Economic Predictions for 2008” shows the U.S. economy showing no growth in the last quarter of 2007 and weak growth during the first six months of 2008.

The Russell 2000 (NYSE: IWM) is higher as investors anticipate the U.S. Federal Reserve will lower its target interest rate.
 
At 10:41 a.m. ET, the small-cap index had climbed 1.86 points, or 0.24%, to 793.06. The Dow Jones Industrial Average (INDU) had declined 20.64 points, or 0.15%, to 13,706.39.

Small-cap stocks are posting modest gains as investors focus their attention on the U.S. Federal Reserve, which is meeting today to decide on monetary policy. Financial markets have recently taken the view that a 0.25% cut in the federal funds rate, the rate at which commercial banks make overnight loans to each other, is a sure bet.

The target interest rate currently stands at 4.5%. The U.S. central bank will announce its decision at 2:15 p.m. ET.

A cut will help boost the economy, which some economists say could fall into recession due to the ongoing slump in the housing sector and the credit squeeze.

Also helping the bulls are solid earnings news from major players.

Telecommunications giant AT&T Inc. (NYSE: T) said that it will buy back up to $15.2 billion of shares. The San Antonia, Texas-based company also said that it expects to see growth in fiscal 2008 earnings.

Chemical company ShengdaTech Inc. (Nasdaq: SDTH) said it expects net income of about $23 million in fiscal year 2007. The guidance is 31% higher than the China-based company’s $17.5 million net income in 2006.

Yadkin Valley Financial Corp. (Nasdaq: YAVY) announced it is buying Cardinal State Bank (Nasdaq: CSNC) for about $41.8 million, or $17.62 per share, in cash. Yadkin expects to complete the deal in the fourth quarter of 2007.

Silverleaf Resorts, Inc. (Nasdaq: SVLF) raised its full-year profit guidance, citing boosted Vacation Interval sales and interest income.

Australian investment firm Babcock & Brown Ltd. (ASX: BNB) announced it is buying laundry services business Coinmach Service Corp. (AMEX: DRA) for $713 million.

Hawkins, Inc. (Nasdaq: HWKN) reported a profit of $1.8 million, or $0.18 per share, for the fourth quarter ended April 1, compared with a $1.3 million profit, or $0.13 per share, a year earlier.

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