Tag - Flws

The markets were up today sloughing off yesterday's losses. The down closed up 57 points to 8,504. The Nasdaq gained 11 points to close at 1,845 and the S&P 500 gained 4 points to close at 923 after hitting resistance at 932 in morning trading and slowly sliding back down.

The Russell 2000, moved up just under 2% for the day to close at 517. The Russell 2000 represents the 2,027 small cap companies and contains well known companies like 1-800 Flowers.com (Nasdaq:FLWS), BankRate.com (Nasdaq:RATE), and Dominos Pizza (NYSE:DPZ). The Russell 2000 Index is up 50.7% since the market's nadir on March 9, 2009.

Small-cap gainers were lead by Oshkosh Corporation (NYSE:OSK), up 27% after the Pentagon announced that the firm's new blast resistant, off-road ground force vehicles were the "clear winners" in a multi-billion dollar competition. Oshkosh won the bid to build 2,244 vehicles for a deal worth $1.06 billion. The company beat out defense industry heavyweights including BAE Systems (LSE:BA.L) and General Dynamics (NYSE:GD).

A very exciting small-cap gainer today was LogMeIn (Nasdaq:LOGM), up 25% on it's IPO. LogMeIn is an on-demand connectivity specialty service firm whose product allows computer users to access files and services on one of their computers from another computer across the Internet.

For example, workers can access files resident on their office computers from home without having to attach to a corporate network or have their files stored on network servers. LogMeIn's services are primarily directed to small and medium-sized businesses.

Other gainers included Ivanhoe Mines (NYSE:IVN), up 23%; Northeast Bancorp (Nasdaq:NBN), up 23%; and ShengdaTech (Nasdaq:SDTH), up 19% after being upgraded by Roth Capital to a Buy rating from a Hold.

Small-cap decliners were lead by CardioNet (Nasdaq:BEAT), down 41% on news that the company slashed its profit and revenue outlook for 2009. The Pennsylvania-based maker of wireless heart-monitoring devices revised its profits to a range of 30 cents to 35 cents from earlier forecasts of 69 cents to 73 cents. Investors punished the company by unloading shares started right the open and continuing through the day. Shares tumbled to $9.57 from Tuesday's close of $16.32.

Rounding out the small-cap decliners were Repros Therapeutics (Nasdaq:RPRX), down 31% after being downgraded by Wedbush Morgan and Ladenburg Thalmann; Spartan Motors (Nasdaq:SPAR), down 27%, and Immersion Corporation (Nasdaq:IMMR), down 23%.

*****Earnings season is right around the corner. It seems that expectations are pretty low. I've read a few commentaries that suggest that estimates are low enough that companies should be able to meet them. Of course, what corporate America has to say about the future will be important.

Of course, I'll be watching the banks closely.

*****A lot has gone right for the banks lately. Changes to accounting rules have allowed them enough breathing room to operate. Mortgage loan modifications have brought in fees. And trading activities have even helped some banks to boost profits.

Still, I believe there's another banking shoe to drop.

As I reported yesterday, foreclosure sales are the majority of home sales these days. And when a bank sells a foreclosed home, it is a realized loss. That's as opposed to a non-performing loan or a foreclosed home that has yet to be sold, which can be counted as an asset.

Further exacerbating this is that banks are not realizing as much profit on those sales of foreclosed homes as they're all flooding the market with them and thus driving down prices.

So I expect to see higher losses affecting banks' earnings in the future. These losses may not show up in the earnings season that's about to begin, but they are looming.

*****It was reported today that mortgage applications fell 19% last week, another sign that foreclosures are driving the market. It also reinforces the point that once foreclosure sales slow, there may well be little demand for traditional home sales to pick up the slack.

Rising interest rates and still-falling home values are also impacting new mortgage applications. It's a buyers market, and there's no reason to rush in when prices are falling and loan costs are rising.

*****Bloomberg is reporting that 20 million of the 93 million homes, condos and co-ops in the U.S. are underwater as of March 31, 2009. Somebody will take these losses at some point, whether it's the homeowner, the bank or the government/taxpayer or a combination of any or all of the three.

******We know that sub-prime mortgages were a major source of non-performing loans and foreclosures. Now, prime mortgages are in trouble. In his morning missive to his traders, TradeMaster Daily Stock Alerts' Jason Cimpl had this to say:

Delinquencies on prime mortgages soared in the first quarter of this year. Delinquency rates on prime mortgages, the least risky category, were 661,914, a jump from 250,986 a year earlier. Two thirds of all mortgages in the U.S. are prime mortgages, so any percentage increase in delinquencies represents a huge absolute number of delinquent mortgages. Here is more proof that banks are in for a tough few years as they must monitor their loan portfolios even closer and suffer write-offs. If prime mortgages start going south in a big way, look for banks to stiffen lending standards even more. Either way, this will have a negative impact on their bottom line numbers

The evidence is building that the economy is nowhere near out of the woods. And we can also see that banks will be facing serious problems ahead. As I said yesterday, investors should be on their toes.

Also, we're not recommending downside positions on banks - yet. But that time will come, and there will be a lot of money to be made.

*****I'm giving my staff the day off on Friday. There will be no Daily Profit that day. And I've cajoled Jason into giving us his video chart analysis tomorrow, so we have that to look forward to tomorrow…

If you can't wait, check out Jason's video from last week and get a special opportunity to try his TradeMaster service. Click here.

 

Noble International (Nasdaq:NOBL), Susser Holdings Corp. (Nasdaq:SUSS) and TXCO Resources Inc. (Nasdaq:TXCO) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.         

Also included among the results: McCormick & Schmick's Seafood Restaurants Inc. (Nasdaq:MSSR), Medifast Inc. (Nasdaq:MED), ENGlobal Corp. (Nasdaq:ENG), Republic Airways Holdings Inc. (Nasdaq:RJET), Mediacom Communications Corp. (Nasdaq:MCCC) and 1-800-Flowers.com Inc. (Nasdaq:FLWS). 

Here are the biggest percentage gainers among small caps:     

Small caps have been on a rollercoaster ride in Tuesday’s trading, falling in morning trading on soft economic data, a global rout in equities and a record-low U.S. dollar, but rebounding in afternoon trading after crude oil plunged more than $8. Continuing worries over the health of the American economy prompted a widespread sell-off in stocks, which sent oil dropping. At 1:10 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.5, or 0.98%, at 671.

In a highly volatile session, crude oil has fallen $8.14 from its intraday high to $137.04 a barrel in recent trading.

In testimony this morning, Federal Reserve Chairman Ben Bernanke told Congress that the U.S. economy is faced with "numerous difficulties.” Bernanke’s comments came on the heels of the Fed and Treasury’s announcement that it would financially support Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) if necessary. The Fed chairman said that the financial markets remain under “considerable stress” and that consumer spending was likely to be “restrained” in coming quarters.

On the inflation front, the PPI headline figure came in at plus 1.8%, which was well ahead of the forecast for a rise of 1.3% and the year-over-year figure was a sobering plus 9.2%, the largest rise since June 1981. On the consumer spending ledger, the news was also dour, with June retail sales up just 0.1%, well down from the median forecast for a rise of 0.4% as car sales notched their biggest drop in more than two years. Even when excluding autos, June sales were up just 0.8%, which also missed the forecast for a rise of 1%.

Retail sales in May were strong, and although this month’s figure missed the estimate, it was still a decent number. The problem is that May and June sales were temporarily boosted by government stimulus checks and the strength is seen as temporary from most analysts. “Despite recent strength, consumers are slowly and grudgingly succumbing to job losses, high energy prices, the housing meltdown and the financial market turmoil,” Steven Wood, chief economist with Insight Economics, said in an email.

The U.S. dollar was dumped en masse as global investors elected to steer clear of financial uncertainty. The greenback has recovered some losses during . . .

Small-cap stocks fell hard this morning, pulled down by soft economic data, a global rout in equities, record lows in the U.S. dollar and a sobering outlook from central bank leaders. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 13.92, or 2.09%, at 650.59, the lowest level seen since March.

In Senate testimony this morning, Federal Reserve Chairman Ben Bernanke will address the economy and monetary policy. In a release of the advance text, Bernanke said that the financial markets remain under “considerable stress” and that consumer spending was likely to be “restrained” in coming quarters. The immediate response to the Bernanke text headlines was that stock markets extended the morning slide.

The stock market was already taking a beating in after-hours trading before a fresh batch of economic data came out on the weak side ahead of the opening. On the inflation front, the PPI headline figure came in at plus 1.8%, which was well ahead of the forecast for a rise of 1.3% and the year-over-year figure was a sobering plus 9.2%, the largest rise since June 1981. On the consumer spending ledger, the news was also dour, with June retail sales up just 0.1%, well down from the median forecast for a rise of 0.4% as car sales notched their biggest drop in more than two years. Even when excluding autos, June sales were up just 0.8%, which also missed the forecast for a rise of 1%.

Retail sales in May were strong, and although this month’s figure missed the estimate, it was still a decent number. The problem is that May and June sales were temporarily boosted by government stimulus checks and the strength is seen as temporary from most analysts. “Despite recent strength, consumers are slowly and grudgingly succumbing to job losses, high energy prices, the housing meltdown and the financial market turmoil,” Steven Wood, chief economist with Insight Economics, . . .

Specialty gift and floral retailer 1-800-Flowers.Com Inc. (Nasdaq:FLWS) is down nearly 9% in today’s pre-market trading after analysts at Goldman Sachs downgraded the company to “sell” from “neutral” ahead of the opening. The research firm said the Carle Place, N.Y.-based company faces a rough economy with consumer spending dropping. Goldman cut the company’s price target to $6 from $9. In today’s pre-market, shares of 1-800-Flowers.com are at $5.09, down $0.49 from Monday’s close. The company’s shares have ranged from $5.50 to $13.42 during the past year.

1-800-Flowers.Com Inc. (Nasdaq:FLWS) slumped to a 52-week low early in today’s trading, despite the price of crude oil falling from its record highs. High gas prices have affected the flower and gift retailer because many of its products are delivered directly to the consumer. Even with lower crude, the Carle Place, N.Y.-based company is falling in today’s trading, which could be in part because the next few months don’t have a big holiday that warrants flower or gift sending. Shares of 1-800-Flowers.Com are down more than 6% at $5.78 on below-average volume at 12:40 ET. During the past year, the stock has ranged from today’s low of $5.76 to a high of $13.42. 

1-800-Flowers.com, Inc. (Nasdaq: FLWS) shares are up after the gift retailer said strong flower sales helped narrow its first-quarter loss. Before the opening, the Carle Place, N.Y.-based firm reported a quarterly loss of $5.8 million, or $0.09 per share, on par with analyst expectations and above a loss of $7.4 million, or $0.11 per share, a year earlier.

Revenue for the three months ended Sept. 30 climbed 6.3% to $145.8 million, below Wall Street projections of $146.9 million and compared with $137.1 million a year earlier.

“For the period, revenue growth was driven by the strong performance in our Floral category, including our flagship 1-800-Flowers.com consumer brand and our BloomNet wire service business,” CEO Jim McCann said in a statement. “Importantly, during the quarter we continued to enhance our gross profit margin and operating expense ratio, achieving improvements of 110 basis points and 100 basis points respectively.”

The gift retailer affirmed its fiscal 2008 outlook, saying it expects revenue in the range of $976.5 million to $994.7 million, in line with analyst estimates of $984.9 million and from $912.6 million last year. 1-800-Flowers.com’s management said the firm expects an annual profit of between $0.34 and $0.35 per share, on par with Wall Street expectations of $0.35 per share and compared with $0.26 per share last year.

In afternoon trading, FLWS shares are up 2.68%, or $0.34, at $13.02. Over the last 52 weeks, shares have ranged from $5.08 to $13.42.

Floral and gift retailer 1-800-Flowers.com, Inc. (Nasdaq: FLWS) plans to boost its earnings through expanded gift and web hosting offerings, CEO James McCann said during a midday conference call.

During the first quarter of fiscal 2008 ending October 1, McCann said the company expects revenue in the range of $156.3 million to $159 million, compared with $137.1 million in the same period of 2006. Wall Street had been expecting revenue of $151.1 million.

During 2008, the company expects the first quarter to make up 14% to 16% of total sales; second quarter 35% to 37%; third quarter 24% to 26% and the fourth quarter, 24% to 26% of aggregate revenues. 1-800-Flowers expects annual earnings growth of about $0.33 per share in fiscal year 2008, from $0.26 in 2007.

For the 2008 fiscal year, that the company expects revenue growth in the range of 7% to 9%, or $836.4 million to $852 million, from $781.7 million in 2006.

McCann said the company expects sales growth in its consumer floral, BloomNet, food and fist basket segments, but anticipates flat results from its home and children’s category. He said the company is continuing to evaluate strategic options for the home and children’s business.

Before the opening bell, the flower and gift provider said its fourth-quarter profit soared to $6.6 million, or $0.10 per share, which is above analyst estimates of $0.08 per share. During the year-ago period, 1-800-Flowers recorded a profit of $1 million, or $0.02 per share. For the three-month period ended July 1, the firm’s quarterly revenue increased to $231.8 million, which is above the company’s fourth-quarter revenue of $211.1 million in 2006.

BloomNet Wire Service, a florist products and services wire service, is capturing an increasing market share, McCann said. The firm recently introduced floral selection guides, web hosting services and other store management offerings, he said. These new services are “quickly gaining acceptance among our florists,” he said. During the fourth quarter, BloomNet’s revenue increased to $14.8 million, from $9.5 million.

Record-high gas prices this summer will likely dampen overall retail sales but may fuel increased opportunities for on-line retailers as cost-conscious consumers opt to shop on-line instead of in stores. Online sales experienced strong growth last year, rising 25% to $219.9 billion. Excluding travel, e-commerce sales rose 29% in 2006 to $146.5 billion. For the current year, online sales are forecast to grow 18% to $259.1 billion and on-line sales excluding travel are projected to rise 19% to $174.5 billion. According to a Forrester Research survey for the National Retail Federation, 10% of all clothing and accessory sales will occur on line in 2007, up from 8% last year. Overall online retail sales excluding travel are expected to account for 7% of the total retail market in 2007, up from 6% last year.

The main challenges to even faster online growth are delays between ordering and receiving products, and consumers’ desire to physically examine certain items (such as apparel) before purchasing. Online order security and data protection have also emerged as a major industry issue.  Gartner Group estimates that as much as $2 billion in additional online sales were lost in 2006 because of consumers’ security concerns. Online retailers must also be better prepared for heavy holiday e-commerce traffic. Last year several major retailers experienced website crashes and slowdowns during the holiday season.  Forrester’s report also noted that 83% of online retailers who responded to its survey were profitable last year, and 78% reported increased profits.

Data from comScore Networks indicates consumers spent more online than ever before during the 2006 holiday season. E-commerce revenues exceeded $100 billion for the first time ever and spending was 22% higher than last year. comScore noted the largest surge in online buying came during the three weeks leading up to Christmas; e-commerce sales rose 45% from the previous year. The strong e-commerce results stand in marked contrast to overall sales for major U.S. retailers, which showed weak same-store sales comparisons and single-digit sales growth for the 2006 holiday season.