Tag - Flow

Small-cap stocks pushed lower, pressured by concerns about corporate profits, worries about late holiday spending results and ongoing jitters about the economy and the credit crisis. Losses were limited by optimism about stimulus plans for 2009 and persistent bargain hunting from market watchers who believe the bottom has already been made.  Some of today’s small-cap gainers are Fuel Systems Solutions (Nasdaq:FSYS), American Capital Agency (Nasdaq:AGNC) and Flow International (Nasdaq:FLOW).

Other Market Watch highlights today included:

•Even though chipmakers were higher in European trading, tech stocks were underperforming both the Dow and small caps.  
• Citigroup analysts said that they remain underweight on utilities, autos and real estate investment trusts.
• The greenback remained down against the euro, which could underpin various commodity markets today.  
• Copper prices rose 4% in London trading, bolstered by a dip in the U.S. dollar vs. the euro & by news of a jump in China imports during November.

Small Cap Gainers:

• Fuel Systems Solutions up 5.13% in pre-market after analysts initiate coverage on Friday of the small cap with a "buy." See (Nasdaq:FSYS).  
• American Capital Agency up 3% in pre-market after declaring a $1.20 Q4 dividend. See (Nasdaq:AGNC). 
• Flow International 2% higher today after an analyst last week upgraded the small cap from "buy" to "strong buy," citing new 10Q financial reports. See (Nasdaq:FLOW).  
• Rackspace Hosting Inc. opened higher on light volume after taking a big hit Friday. See (NYSE:RAX).  

Small Cap Losers:

• Grey Wolf Inc. gapped lower and tumbled 40% to 52-week lows. See (NYSE:GW).  
• Brown Shoe Company Inc. fell 10%, giving part of a huge rally from Friday. See (NYSE:BWS). 
• Accuray down 7% after swinging to a Q1 loss on Friday. See (Nasdaq:ARAY).
• Ruby Tuesday announces multiple store closures and $70 million anticipated loss in 2009; shares dip 4.4%. See (NYSE:RT).  

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).

After an impressive rally on Tuesday, small caps fell under pressure amid gloomy economic outlooks and possible downgrades, and as crude oil prices gushed higher. In Wednesday’s trading, the Russell 2000 (NYSE:IWM) fell 18.97, or 2.78%, at 663.75, while the Dow declined 236.77, or 2.08%, at 11,147.44.

After jumping nearly $2 dollars into the open to roughly $138 per barrel, crude oil futures reversed course and fell $0.40 to $135.64 a barrel. The U.S. dollar also fell against both the euro and the Japanese yen.

Prices were catapulted higher in the morning on news that crude inventory levels slipped more than anticipated. The Energy Information Administration reported this morning that U.S. oil supplies declined by 5.9 million barrels, substantially greater than Platts’ forecasted decrease of 1.9 million barrels. Additionally, Iran test fired missiles to show that they would retaliate if Israel attacks their nuclear production facilities, heightening concerns among oil traders that a conflict could cut off the transportation of crude supplies through the Strait of Hormuz, a highly utilized shipping route for the transportation of crude supplies. 

The International Monetary Fund said today that it remains weary on global economic growth this year and in 2009, as the credit crisis continues to grip global markets and skyrocketing food and fuel prices crimp consumers and businesses. IMF chief Dominique Strauss-Kahn, however, stated that he is more concerned about inflationary pressures.

In a research report this morning, analysts at Goldman Sachs said that a “snap-back rally” was always possible and that on a pure valuation basis, some investors might ask whether economic risk is now adequately priced into the stock market. “We think it remains dangerous to trade against the downside equity market trend based on valuation metrics alone at this point. The market is in the process of adapting expectations to a less optimistic view of the macro environment. And what looks cheap now may not look that cheap in the near future, should fundamentals turn even less friendly going forward. In this regard, the economic environment . . .

After an impressive rally on Tuesday, small caps are under pressure midday amid gloomy economic outlooks and possible downgrades, and as crude oil prices gushed higher.
 
At 12:28 p.m. ET, the Russell 2000 (NYSE:IWM) was down 1.43, or 0.21%, at 681.29, while the Dow was down 16.45, or 0.14%, at 11,367.76.

After jumping nearly $2 dollars into the open to roughly $138 per barrel, crude oil futures have reversed course and are flickering between the red and black midday. A barrel of light sweet crude oil rose $0.11 to roughly $136 per barrel midday for the August contract. Today’s mild fluctuations come on the heels of consecutive sharp pullbacks this week in the commodity.

Prices were catapulted higher in the morning on news that crude inventory levels slipped more than anticipated. The Energy Information Administration reported this morning that U.S. oil supplies declined by 5.9 million barrels, substantially greater than Platts’ forecasted decrease of 1.9 million barrels. Additionally, Iran test fired missiles to show that they would retaliate if Israel attacks their nuclear production facilities, heightening concerns among oil traders that a conflict could cut off the transportation of crude supplies through the Strait of Hormuz, a highly utilized shipping route for the transportation of crude supplies.  

The International Monetary Fund said today that it remains weary on global economic growth this year and in 2009, as the credit crisis continues to grip global markets and skyrocketing food and fuel prices crimp consumers and businesses. IMF chief Dominique Strauss-Kahn, however, stated that he is more concerned about inflationary pressures.

In a research report this morning, analysts at Goldman Sachs said that a “snap-back rally” was always possible and that on a pure valuation basis, some investors might ask whether economic risk is now adequately priced into the stock market. “We think it remains dangerous to trade against the downside equity market trend . . .

Flow International Corporation (Nasdaq:FLOW) announced ahead of the opening bell today its fourth-quarter revenues had increased 21%. For the quarter ended April 30, the Kent, Wash.-based company reported net income of $13.3 million, or $0.35 per share, compared with a net loss of $3.2 million, or $0.09 a share, for the same quarter a year ago. Wall Street had been expecting net income of about $0.14 per share. Revenues grew to $63.3 million, up from $52.3 million a year earlier; fourth-quarter revenues fell below analyst expectations of $65.2 million. Flow International, which manufactures high-pressure water pumps and systems, said the profitable quarter was the result of growing global demand for waterjets and a balancing of the company’s portfolio. In pre-market trading today, shares of Flow International are mostly flat, down just 0.88% at $7.90.

The Russell 2000 (NYSE: IWM) fell hard today as the stain from the subprime mortgage meltdown spread. The small-cap index let go 20.96 points, or 3.07%, to 662.78. The Dow Jones Industrial Average (INDU) declined 214.60 points, or 1.75%, to 12,040.39.

On a year-to-date basis, the Russell 2000 is down 13.48%, while the Dow has retreated 9.23% and the S&P 500 has shed 11.17%.

The bears completely dominated trading today on news before the start of trading that investment company Carlyle Capital Corp. Ltd. had failed to meet a margin call and received a notice of default from one of the banks that helps finance its portfolio of mortgage securities.

Similarly, Santa Fe, N.M.-based residential mortgage lender Thornburg Mortgage Inc. (NYSE: TMA) announced after the close on Wednesday that it had failed to meet a margin call of about $28 million.

A “margin call” is when banks call in their loans to investors, who are in turn forced to sell off assets to raise cash, leading to a reduction in the price of those assets and more margin calls and losses.

Today’s news raised fears that the credit squeeze and the consequences of the housing downturn will continue plaguing the financial system.

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open with a decline.

Stocks are set for a bearish opening following news this morning that Carlyle Capital Corp. Ltd, which invests in fixed income asset classes, including residential mortgage-backed securities, has failed to meet margin calls on its $21.7 billion portfolio.

The Russell 2000 had a tame session Wednesday, gaining 2.76, or 0.41%, ending at 683.74. Price action the last several sessions has been sloppy after yet another double top on daily charts back on Feb. 27. Look for support today at 677 and 670. There is minor support below there at 666 and 660, but a decisive breach of 670 opens the door to test the recent low down at 650. On the upside, resistance comes in at 692, then at 701 and 712.

This morning's weekly claims report at 8:30 a.m. ET might attract a little more interest than this report usually would garner, just because we’re facing the big unemployment release Friday.

Leo Fasciocco, publisher of the Ticker Tape Digest, has an intriguing approach to stock selection. Like many advisors, he focuses on a company’s operations, earnings and sales, growth prospects, institutional ownership, insider buying and other fundamentals.

However, a unique aspect of his report is that he only recommends “breakout” stocks. For a stock to make it on to his “buy” list, it must either have broken above a technical resistance level, or be under strong accumulation and appear poised for an expected breakout.

He says that he expects these breakout stocks to be among the best performers during bull markets and strong market rallies. He does, however, caution that his strategy is most suitable for aggressive investors.

Using the same approach, the advisor also recommends short sales; in those cases, he is looking for stocks that are breaking below previous support lines. Overall, Fasciocco screens some 8,000+ stocks each day to find his long and short picks.

Currently, he rates the market’s short-term outlook (based on daily and weekly charts) as bullish, but considers the long-term environment for stocks to be neutral. As such, he says, “Bulls should be very alert now.”

Meanwhile, two small-cap stocks have recently shown up among his buys: Flow International Corporation (Nasdaq: FLOW), with a market cap of $355 million and Exponent, Inc. (Nasdaq: EXPO), which has a market cap of $448 million.

Flow International, he says, makes ultra high-pressure water jet systems. These systems, he explains, pressurize water up to 100,000 PSI and are used to cut and prepare surfaces in industrial applications, including aerospace, automotive and road maintenance.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting solid gains following news of upbeat economic data.

At 10:48 a.m. ET, the small-cap index was up 10.69 points, or 1.42%, to 762.75. The Dow Jones Industrial Average (INDU) had gained 145.91 points, or 1.10%, to 13,394.64.

Non-farm U.S. productivity increased a healthy annualized rate of 6.3% during the third quarter, according to revised numbers released by the Labor Department before the start of trading.

That’s the largest productivity gain in four years and above the initially reported increase of 4.9%. Productivity rose 2.2% during the second quarter.

Unit labor costs, the cost of worker compensation and benefits per unit of manufactured output, fell 2%, reflecting the upward revision to productivity and the downward revision to hourly compensation.

Unit labor costs are a key measure of inflation.

If a rise in labor costs is not matched by a rise in productivity, which would allow the company to produce more and cover the extra labor costs with proceeds from the increased output, costs are either absorbed by the company or passed along to the consumer in the form of higher prices.

Flow International Corp. (Nasdaq: FLOW), a developer and manufacturer of industrial waterjet machines, said it will acquire OMAX Corp. through an options agreement for $109 million in cash and stock, including the amounts paid for the option agreement.

The deal also includes the potential for a contingent earn-out in two years of up to $26 million in either stock or cash at Flow's option.

OMAX is a Kent, Wash.-based privately held provider of precision-engineered, computer-controlled, abrasive waterjet systems.

Shares of Flow International (FLOW) were halted in pre-market trading.

MidWestOne Financial Group, Inc. (Nasdaq: OSKY), Cardica, Inc. (Nasdaq: CRDC) and Telular Corp. (Nasdaq: WRLS) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Wavecom S.A. (Nasdaq: WVCM), Flow International Corp. (Nasdaq: FLOW) and Fuwei Films Co., Ltd (Nasdaq: FFHL) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

Computer hardware maker SBE, Inc. (Nasdaq: SBEI) is giving back some of Wednesday’s considerable gains.

Maternity clothing retailer Mothers Work, Inc. (Nasdaq: MWRK) said same-store June sales fell 5.4% from the year-ago period. Mothers Work recorded net sales of $46.9 million for the period, from $49.6 million in 2006.

Flow International Corp. (Nasdaq: FLOW) reported an 18% plunge in fourth-quarter revenue compared with 2006.

Citing negative trends, specialty store chain Gottschalks Inc. (NYSE: GOT) forecast a second-quarter loss and lowered its fiscal-year earnings guidance.

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

U.S. stocks are trading lower following Federal Reserve Chairman Bernanke’s words on subprime loans and a drop in leading economic indicators.  Among small caps, shares of OPNET Technologies, Inc. (Nasdaq: OPNT) fell on news that quarterly profit missed the mark, while Flow International Corp.’s (Nasdaq: FLOW) stock price declined after news the company will continue to be independent.

At 11:32 a.m. ET the Russell 2000 had lost 4.75 points, or 0.58%, to 815.45.  The Dow Jones Industrial Average was down 9.26 points, or 0.07%, to 13,478.27.

These are the biggest percentage losers among companies with market capitalizations under $500 million: