Tag - Drco

<strong>West Marine Inc.</strong> (Nasdaq:<a href="/ticker/wmar">WMAR</a>), <strong>Patni Computer Systems&nbsp;</strong>(Nasdaq:<a href="/ticker/pti">PTI</a>) and <strong>Sourcefire Inc.</strong> (Nasdaq:<a href="/ticker/fire">FIRE</a>) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.<br /> <br /> Also included among the results: <strong>GHL Acquisition Units</strong> (Nasdaq:<a href="/ticker/ghq.u">GHQ.U</a>),<strong> AEP</strong> <strong>Industries Inc.</strong> (Nasdaq:<a href="/ticker/aepi">AEPI</a>), <strong>Dynamics Research Corp.</strong> (Nasdaq:<a href="/ticker/drco">DRCO</a>), <strong>Steven Madden Ltd.</strong> (Nasdaq:<a href="/ticker/shoo">SHOO</a>) and &nbsp;<strong>Destination Maternity Corp.</strong> (Nasdaq:<a href="/ticker/dest">DEST</a>).

Ardea Biosciences Inc. (Nasdaq:RDEA), Mercury Computer Systems Inc. (Nasdaq:MRCY) and MAKO Surgical Corp. (Nasdaq:MAKO) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Legacy Reserves Units (Nasdaq:LGCY), Pharmaxis Depository Receipt (Nasdaq:PXSL) and Dynamics Research Corp (Nasdaq:DRCO) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: UAL Corp. (Nasdaq:UAUA), Amrep Corp. (Nasdaq:AXR), Forest City Enterprises (Nasdaq:FCE.A), VanceInfo Technologies Inc. (Nasdaq:VIT), Dendreon Corp. (Nasdaq:DNDN) and MF Global Ltd. (Nasdaq:MF).

Small-cap stocks reversed morning losses and climbed into positive territory, sparked by talk that the “mark-to-market” accounting rules might be suspended to provide additional relief to banks and financial institutions to weather the current crisis. In addition, solid action for tech stocks and gains for retailers amid same-store sales reports provided further bullish fodder. Some of today’s small-cap gainers were Badger Meter Inc. (NYSE:BMI), Dynamics Research Corp. (Nasdaq:DRCO) and Mainland Services Inc. (Nasdaq:MNLU).

Other Market Watch highlights today included:

• Even though individual store results were spotty, the S&P Retail Index was up about 2.5% at midday, clearly outpacing the general market.  
• Retail stocks provided a surprising source of strength today, despite a bevy of mostly disappointing monthly sales reports.  
• Outside of the recovery bounce in financials, the stock market also found support from tech shares.  
• The KBW Banking Index rallied about 6% off the early low and briefly traded in positive territory.  

Small Cap Gainers:

• Badger Meter Inc. rose 20% as the liquid flow specialist received an earnings-related boost. See (NYSE:BMI).  
• Dynamics Research Corp. rallied 21% as the technology management firm updated guidance. See (Nasdaq:DRCO).  
• Mainland Services Inc., an oil exploration firm, jumped 37% to the highest point since November. See (Nasdaq:MNLU).  
• Kelly Services Inc. jumped 50% on ultra light volume without any apparent fresh news after hitting a new low Wednesday. See (Nasdaq:KELYB).  

Small Cap Losers:

• Gartner Inc. fell 22% as the IT firm beat the earnings estimate, but presented a gloomy 2009 outlook. See (NYSE:IT).
• Life Time Fitness Inc. slumped 13% as the operator of workout facilities released preliminary earnings news. See (NYSE:LTM).  
• Corporate Executive Board Co. fell 17% as the executive networking firm announced earnings after the close Wednesday. See (Nasdaq:EXBD).   

Small-cap stocks reversed morning losses and climbed into positive territory, sparked by talk that the “mark-to-market” accounting rules might be suspended to provide additional relief to banks and financial institutions to weather the current crisis. In addition, solid action for tech stocks and gains for retailers amid same-store sales reports provided further bullish fodder. At 12:10 p.m. ET, the Russell 2000 (NYSE:IWM) was up 9.15, or 2.04%, at 457.62.

Bank stocks were an early drag on the market, with Bank of America Corp. (NYSE:BAC) sinking to 25-year lows, but bank and other financial shares rallied off the morning lows as the accounting rule talk made the rounds. There is hope that next week’s announcement from the Obama Administration about the stimulus plan may include changes or suspension of the “mark-to-market” rules. The KBW Banking Index rallied about 6% off the early low and briefly traded in positive territory.

Outside of the recovery bounce in financials, the stock market also found support from tech shares, which were supposed to be an eyesore today following downgraded revenue projections from Internet enabler Cisco Systems Inc. (Nasdaq:CSCO). After trading lower in pre-market activity, Cisco moved into positive territory today, providing a spark for tech stocks in general. Also, semiconductor shares were on a roll into mid-session, also lifting tech shares.

Retail stocks also provided a surprising source of strength today, despite a bevy of mostly disappointing monthly sales reports. The standard-bearer for the upside was probably Wal-Mart Stores Inc. (NYSE:WMT) as the world’s largest retailer and discount provided topped the monthly same-store sales forecast, providing hope to investors that consumer spending might not be as awful as feared. Even though individual store results were spotty, the S&P Retail Index was up about . . .

Dynamics Research Corp. (Nasdaq:DRCO), Badger Meter Inc. (Nasdaq:BMI) and Citi Trends Inc. (Nasdaq:CTRN) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: RightNow Technologies Inc. (Nasdaq:RNOW), Cubic Corp (Nasdaq:CUB), EnerSys (Nasdaq:ENS), Horace Mann Educators Corp. (Nasdaq:HMN), MedCath Corp. (Nasdaq:MDTH) and Shutterfly Inc. (Nasdaq:SFLY).

GTx Inc. (Nasdaq:GTXI), Eclipsys Corp. (Nasdaq:ECLP) and First Midwest Bancorp Inc. (Nasdaq:FMBI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: WSFS Financial Corp. (Nasdaq:WSFS), Heartland Payment Systems Inc. (Nasdaq:HPY), Capitol Bancorp Ltd. (Nasdaq:CBC), Dynamics Research Corp. (Nasdaq:DRCO), DryShips Inc (Nasdaq:DRYS) and Lakeland Bancorp Inc. (Nasdaq:LBAI).

TechTeam Global Inc. (Nasdaq:TEAM), Lacrosse Footwear Inc. (Nasdaq:BOOT) and Chiquita Brands International Inc. (Nasdaq:CQB) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Dynamics Research Corp. (Nasdaq:DRCO), MSB Financial Corp. (Nasdaq:MSBF), Isramco Inc. (Nasdaq:ISRL), Santa Monica Media Units (Nasdaq:MEJ.U), The9 Ltd. (Nasdaq:NCTY) and Zones Inc. (Nasdaq:ZONS).

Jones Apparel Group Inc. (Nasdaq:JNY), Switch & Data Facilities Co Inc. (Nasdaq:SDXC) and Temple-Inland Inc. (Nasdaq:TIN) are among the new 52-week lows in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Dynamics Research Corp. (Nasdaq:DRCO), American Greetings Corp. (Nasdaq:AM), Monotype Imaging Holdings Inc. (Nasdaq:TYPE), Brunswick Corp. (Nasdaq:BC), Atheros Communications Inc. (Nasdaq:ATHR) and CPI International Inc. (Nasdaq:CPII).

Here are the new 52-week lows among small caps:

Cypress Semiconductor Corp. (Nasdaq:CY), Pamrapo Bancorp (Nasdaq:PBCI) and Commercial Vehicle Group Inc. (Nasdaq:CVGI) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Dynamics Research Corp. (Nasdaq:DRCO), CNB Financial Corp. (Nasdaq:CCNE), Flagstone Reinsurance Holdings Ltd. (Nasdaq:FSR), GSC Investment Corp. (Nasdaq:GNV), UMH Properties Inc. (Nasdaq:UMH) and Riviera Holdings Corp. (Nasdaq:RIV).

Here are the new 52-week lows among small caps:

Brad Evans is a portfolio manager of the Heartland Value Plus Fund and the Heartland Value Fund for Heartland Advisors. Evans is a Chartered Financial Analyst and has more than 11 years of investment industry experience. He initially joined Heartland in 1996 as an equity research associate and was later promoted to equity research analyst focusing on, among other sectors, energy and materials. Following a three-year term with High Rock Capital as a vice president and research analyst, he returned to Heartland in 2004 to assume his current position. Evans graduated from the University of Wisconsin – Madison with honors and a B.A. in International Relations, Russian and Political Science.

What qualities do you look for in a small-cap stock? Have your criterion changed given the current macro environment?

“We are extremely valuation disciplined and look for low P/E, low price-to-cash flow, low price-to-book, low price-to-sales, a low multiple of enterprise value-to-EBITDA, discounted cash flow analysis, private market equity value and peer group analysis.

“We like to find companies that are trading at depressed valuations relative to where they traded before in the past. We find assets that are undervalued relative to what buyers are willing to pay for comparable assets based on what we call private market equity value, which is what a strategic buyer would pay for a set of assets. We do an extensive amount of valuation work. We’re bottoms-up stock pickers here at Heartland, so a lot of what we do is bottoms up and then we marry it together with our top-down view of the world. 

“In this environment, you’ve got to be extremely religious in terms of your valuation work and make sure you are tracking a value company that has good growth opportunities. You need strong management teams and we’re focused on companies where insiders are buying stock, not selling it.”

What are your three favorite small-cap stocks with market caps of under $1 billion for the year and why?

“A company called Asset Acceptance (Nasdaq:AACC) is very timely here. Asset Acceptance is a $283 million buyer of charge off consumer receivables, primarily eligible credit card issuers. Asset Acceptance likes to buy bad debt. The underlying thesis is that part of this credit cycle will include delinquency trends . . .

Pharmaxis Ltd (Nasdaq:PXSL), Astro-Med Inc (Nasdaq:ALOT) and Gametech International Inc (Nasdaq:GMTC) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $750 million.

Dynamics Research Corp (Nasdaq:DRCO), Converted Organics Inc (Nasdaq:COIN) and Riverview Bancorp, Inc (Nasdaq:RVSB) are also among the biggest percentage losers.

Here are the biggest percentage losers among small caps:

Diamond Mgt. & Technology Consultants Inc. (Nasdaq: DTPI), Accredited Home Lenders Holding Co. (Nasdaq: LEND) and LIN TV Corp. (NYSE: TVL) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers: