Tag - Fl

With trading days left in 2010 dwindling many investors are looking through their portfolio and trying to decide what should stay, what should go, and where to increase exposure.

True, the major stock indexes are up for the year: The Dow Jones industrial average has rebounded 10 percent in 2010, and the Standard & Poor's 500 has regained about 11 percent.

Foot Locker Inc. (Nasdaq:FL), SL Green Rlty REIT (Nasdaq:SLG) and Pharmaxis Depository Receipt (Nasdaq:PXSL) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Wilshire Bancorp Inc. (Nasdaq:WIBC), Red Robin Gourmet Burgers Inc. (Nasdaq:RRGB), Herley Industries Inc. (Nasdaq:HRLY), Quixote Corp. (Nasdaq:QUIX), Lacrosse Footwear Inc. (Nasdaq:BOOT) and Gladstone Commercial Corporation (Nasdaq:GOODO).

Small-cap stocks opened higher but quickly slipped into negative territory, as a bounce in banking and commodity stocks and a rise in overseas equities was countered by weak profit reports for a raft of small-cap firms. The market is clearly oversold following dramatic losses this week, which could power a pre-weekend short-covering bounce, but fear about the slumping global economy remains a big part of negative investor psychology. Today’s small-cap gainers are Life Time Fitness Inc.  (NYSE:LTM), USG Corporation. (NYSE:USG) and Mindray Medical (NYSE:MR).

Other Market Watch highlights today included:

• Researchers at Goldman Sachs today said that the upcoming November employment report will be the worst yet for 2008.   Nov 21, 2008 10:10am
•  It should be noted that any improvement today still comes against a backdrop of one of the worst stock market declines in history.   Nov 21, 2008 10:09am
• The U.S. dollar was down about 1% against the euro, which was also seen as a mild bullish element for commodities in general.   Nov 21, 2008 10:08am
• This week has seen massive flight to safe haven ports, out of stocks, which drove yields on Treasury products to historically low levels.

Small Cap Gainers:

• Life Time Fitness Inc. rose 24% on a bounce from 52-week lows forged Thursday. See (NYSE:LTM).  
• USG Corporation announces agreement to sell $400M of contingent convertible senior notes; shares climb 23%. See (NYSE:USG).
• Shares of Shares of Mindray Medical are climbing 18% this morning on very light volume. See (NYSE:MR).  
• Quicksilver Resources up over 17% after board approves $600 million capital budget for 2009. See (NYSE:KWK).  

Small Cap Losers:

• Foot Locker Inc. collapsed 42% as the athletic shoe retailer missed earnings projections. See (NYSE:FL).
• Flow International announces departure of CFO Douglas Fletcher; shares careen 28%. (Nasdaq:FLOW).  
• Celanese Corp. plummets 25% after Citigroup downgrades the small cap to "hold." See (NYSE:CE).  
• Joy Global Inc. down 5% in pre-market after shares tumbled 17.56% on Thursday. See (Nasdaq:JOYG).

Small-cap stocks pushed higher on the open, buoyed by a slide in crude oil prices, a bounce in the U.S. dollar, and soothing comments from billionaire investor Warren Buffett. At 10:04 a.m. ET, the Russell 2000 (NYSE:IWM) was up 8.35, or 1.15%, at 733.60, holding on to gains after the first flash of headlines from Federal Reserve Chairman Ben Bernanke.

Bernanke, speaking on financial stability, said that recent declines in commodity prices and the stability of the dollar were encouraging, and that although the inflation outlook is uncertain, that the Federal Reserve will act as needed to maintain price stability.

Buffett, nicknamed “The Oracle of Omaha” said on CNBC ahead of the opening this morning that stocks were “more attractive” today than they were a year ago and that he does not have any current bearish dollar investments. Buffett’s comments provided a lift to stock index futures and to the dollar ahead of the regular market opening.

Crude oil prices were in retreat mode this morning, unable to extend the dramatic rally from Thursday’s action. Crude oil prices were down nearly $2 dollars a barrel, hovering just below $119, weighed down by OPEC output increases. However, the market is still cautious about tensions between the United States and Russia and closely watching storm patterns trekking through the Gulf of Mexico.

The U.S. dollar was righting the ship today after a sudden freefall Thursday, which also pressured crude oil prices and a host of other commodity markets. The greenback was up some 1.2% against the yen and the pound sterling, and was up about 0.6% versus the euro. At this stage of the economic cycle a firm dollar is seen as a sign of optimism about the U.S. economy relative to other world economies, and . . .

Genesco Inc. (NYSE: GCO) shares are plunging on substantially higher-than-average volume after the shoe retailer announced that it terminated its merger plan with The Finish Line Inc. (Nasdaq: FINL). The $1.5 billion merger was going to be financed by investment bank UBS AG (NYSE: UBS).

The proposed deal, which is pending approval by the companies' boards, would require UBS and Finish Line to pay Genesco $175 million in cash and 12% of Finish Line's outstanding common stock. Both firms’ boards plan to meet on Monday to discuss the settlement.

UBS sued Finish Line and Genesco and sought permission from a Tennessee court to be freed of its responsibility to fund the merger.

Genesco’s largest shareholder, QVT Financial LP, said in a statement that it “strenuously opposes the proposed settlement.” The hedge fund said in a statement that it does not believe the settlement is in the best interests of Genesco’s shareholders. QVT said it wants to meet with the board and management to explain its opinion of the deal, which it views as “a breach of the directors' fiduciary duties to shareholders.”

Finish Line competed with Foot Locker (NYSE: FL) in bidding for Genesco, eventually offering $54.50 a share, or $1.5 billion. The deal experienced trouble after Genesco announced dismal second-quarter results by swinging to a steep loss. Since Genesco reported its second-quarter numbers, the deal has been in litigation.

In afternoon trading, GCO shares are down 18.86%, or $5.65, at $24.30. Over the last 52 weeks, shares have ranged from $21.71 to $54.15.

The Russell 2000 index and the Dow fell on a day market by news of the latest corporate deal making. The Russell 2000 lost 1.91 points, or 0.23%, to finish at 846.28. The Dow Jones Industrial Average lost 26.50 points, or 0.19%, to 13,612.98.

With little news to occupy investors’ minds, the markets reacted to news that Australia’s BHP Billiton Ltd. (NYSE: BHP), the world’s largest mining company, is renewing its $40 billion bid for Pittsburgh, Pa.-based aluminum producer Alcoa Inc. (NYSE: AA), according to press reports.