Tag - Ftk

Stocks continued their slide today as traders are holding tight until they get the Fed's word on the economy. Bernanke & Co. are expected to wrap things up tomorrow, so we could see another round of lower closing prices. 

The Dow closed down 96.50 points at 9,241.45; the Nasdaq finished at 1,969.73, down 22.51; and the S&P 500 fell back below 1,000 to finish the day's session at 994.35, down 12.75 points. 

Stocks in the Russell 2000 were down 9.75 points to end at 562.12. 

Oil closed at $69.38, down $1.22 and gold was at $946.20, up $1.20.
Bucking the downward trend were small-caps like Avanir Pharmaceuticals (Nasdaq:AVNR) up 30%; EchoStar (Nasdaq:SATS) up 19%; and Ivanhoe Energy (Nasdaq:IVAN) up 15%.  

Trending down with the broader markets many small-cap outpaced the market's fall, including Anthracite Capital (NYSE:AHR), down 30%; Javelin Pharamceutical (Amex:JAV), down 27%; Petroleum Development (Nasdaq:PETD), down 22%; and Flotek Industries (NYSE:FTK), down 20%. 

*****Have you noticed that analysts are starting to downgrade stocks? Sprint Nextel (NYSE:S), Yum Brands (NYSE:YUM), PETsMART (Nasdaq:PETM), MBIA (NYSE:MBI) and Aegon (NYSE:AEG) were all marked down by analysts yesterday.  
Coverage was initiated on American Express (NYSE:AXP) at "Sell" by Ladenburg Thalman. Boeing (NYSE:BA) and Research in Motion (Nasdaq:RIMM) have also been downgraded in the last few days.  

So what gives? If everyone's so bullish right now, why are stocks getting downgraded?  
First, stocks have rallied strongly since March. And second, there's no guarantee that earnings can continue to rise. The analysts may be playing it safe, but investors should take note.  

*****AIG (NYSE:AIG) has doubled in the last three days. If there was ever a company that shouldn't double, it's AIG. The government owns something like 90% of the company. And it's actively selling off its important pieces to pay off debt. It's highly unlikely there will be any return for common shareholders.  

And if a completely speculative stock like AIG is moving, we might expect to see others. And sure enough, General Motors, which now carries the ominous name Motors Liquidation Company (MTLQQ.PK), has very nearly doubled in the last week. I don't think that's a good sign for the health of the stock market.

*****Word is that more traders think the dollar may have put in an important low. That would be bad for stocks and commodities. To follow the action, watch the iShares Barclay's 20+ Treasury Bond Fund (TLT).

When this ETF rallies, stocks are usually selling off. And the chart for TLT shows a pretty decent looking double bottom at $90.

*****The latest FOMC meeting starts today. Nobody really expects the Fed to raise interest rates. Even the inflation crowd has to admit that the economic recovery is too frail for higher rates. Still, judging by the declines in the stock market, investors are nervous about what the Fed has to say.

Alan Greenspan used to try to let his words act as monetary policy. Instead of actually moving rates, he would voice his bearish opinion, in the hope that he could keep a lid on asset prices.

It didn't work. And I hope Bernanke doesn't make the same mistake. There's no substitute for actual changes in rates. And despite the weak economy, investors could probably use a message about asset bubbles and risk.  

*****The Managed America Internet video conference aired last night with great success. You can still catch it if you missed. There's a replay available HERE if you're interested in discovering the trends that will affect your investments for the next couple of years and how you can profit from them.

Ian Wyatt
Editor
Daily Profit

P.S. Investors have been asking me about commodities plays. They know that long term inflation will kick in once the recovery starts to ramp up and that will drive commodities, and the share prices of the underlying stocks, through the roof. My Global Commodity Investing advisory service is benefiting from current commodity prices and will provide one of the only safe havens for profits when inflation picks up. Click here to find out more about Global Commodity Investing.

 

StealthGas Inc. (Nasdaq:GASS), Independence Holding Co. (Nasdaq:IHC) and Providence Service Corp. (Nasdaq:PRSC) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Gladstone Commerical REIT (Nasdaq:GOOD), Park-Ohio Holdings Corp. (Nasdaq:PKOH), Flotek Industries Inc. (Nasdaq:FTK), Tortoise North American Energy Corp. (Nasdaq:TYN), Zoltek Companies Inc. (Nasdaq:ZOLT) and Templeton Emerging Markets Income(Nasdaq:TEI).

Here are the biggest percentage gainers among small caps:

Inergy Holdings LP (Nasdaq:NRGP), North American Energy Partners Inc. (Nasdaq:NOA) and Hiland Holdings GP LP (Nasdaq:HPGP) are among the new 52-week lows in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Flotek Industries Inc. (Nasdaq:FTK), Psychemedics Corp. (Nasdaq:PMD), Cheniere Energy Partners L P (Nasdaq:CQP), Cosan Ltd. (Nasdaq:CZZ), EZchip Semiconductor Ltd. (Nasdaq:EZCH) and Safe Bulkers Inc. (Nasdaq:SB).

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

Biodel Inc. (Nasdaq:BIOD), Safe Bulkers Inc. (Nasdaq:SB) and Hecla Mining Co. (Nasdaq:HL) are among the new 52-week lows in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Rubicon Technology Inc. (Nasdaq:RBCN), ATP Oil & Gas Corporation (Nasdaq:ATPG), Britannia Bulk Holdings Inc. (Nasdaq:DWT), Parallel Petroleum Corp. (Nasdaq:PLLL), Flotek Industries Inc. (Nasdaq:FTK) and MAXXAM Inc. (Nasdaq:MXM).

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

Small-cap stocks finished out an up and down session Wednesday with a mild profit after spending much of the day getting bounced around by turbulent price action in crude oil futures. The Russell 2000 (NYSE:IWM) eventually closed up 1.54, or 0.21%, at 731.60 and is now down 4.49% for the year. The Dow closed up 0.61%, while the S&P 500 was up 0.62%. The Dow is off 13.9% for the year, while the S&P 500 is down 13.2%.

The frenetic action in crude oil overshadowed a positive story in the tech arena following upbeat results by the world’s largest computer maker and shuffled big overnight gains in Asian stocks into the backdrop as well.

Crude oil prices plunged to a morning low at $112.61, as the weekly inventory report showed a surprising increase in stockpiles, but then the market reversed course as the energy traders were uneasy with Russia’s response to a missile deal between the United States and Poland, especially with tensions rising between the U.S. and Russia over the Georgian conflict. For the day, crude oil traded in a wildly wide range between $112.61 and $117.03 and closed up $0.45 at $114.98. Goldman Sachs analysts also reiterated their call for $149 crude oil prices by the end of the year, which probably won’t sit well with long-term equity market bulls if it pans out.

The U.S. dollar remained firm against the euro despite the afternoon surge in crude oil, and a strong tone in the greenback remains a potential positive for equities — reflecting global confidence in U.S. assets, even if some of that confidence is really more a lack of faith in other economies around the world. Elsewhere on the commodity inflation front, corn, soybeans and wheat shot higher and the Commodity Research Bureau Index of 19 key physical markets rose about 0.7%.

Although financial shares performed much better today than they fared Monday and Tuesday, it was hard to look past the dramatic free fall in government-sponsored enterprises (GSE), with Fannie Mae (NYSE:FNM) collapsing 25% and Freddie Mac (NYSE:FRE) tumbling 21% as investors decided that a government bailout of the 1mortgage financing giants could crush current shareholder value. Both stocks were at their lowest levels in nearly two decades as everyone scrambled for the exit door at the same time. Despite the wipeout in GSEs, major bank stocks and many . . .

United Community Banks Inc (Nasdaq:UCBI), Flotek Industries Inc (Nasdaq:FTK) and TF Financial Corp (Nasdaq:THRD) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Research Frontiers Inc (Nasdaq:REFR), Medis Technologies Ltd (Nasdaq:MDTL) and Duckwall Alco Stores Inc (Nasdaq:DUCK) are also among the biggest percentage losers.

Here are the biggest percentage losers among small caps:

Small cap stocks are treading higher at mid-session, as crude oil futures pulled back and new home sales figures edged higher, stealing the limelight from a ghastly consumer confidence number.

At 12:46 p.m. ET. the Russell 2000 (NYSE:IWM) had gained 4.25, or 0.59%, to 728.35, while the Dow edged up 6.52, or 0.05%, to 12486.15. 

After breaching a record level of above $135 last week, crude oil prices shed $1.41 to $130.78 a barrel midday, as the oil market focused on a waning economy and weak consumer sentiment figure. The consumer sentiment gauge clocked in at 57.2, below the forecast of 60 and tumbled to a 16-year low.

“The drop in consumer confidence has got people nervous about the levels of the value of crude, specifically gasoline,” said Andy Busch, global foreign exchange strategist for BMO Capital Markets. “[They’re] thinking that these high prices will eventually encourage people to change habits.”

In other economic news, The U.S. Census Bureau and the Department of Housing and Urban Development reported this morning that sales of new one-family homes grew a greater-than-expected 3.3% in April to a seasonally adjusted annual rate of 526,000 from the revised March rate of 509,000, but was 42% below sales in April 2007. Economists were forecasting sales of 520,000. New home sales marked the largest year-over-year decline in 27 years.

Shares of Flotek Industries, Inc. (NYSE: FTK) slipped in morning trading after the provider of drilling and production products for the energy and mining industries said this morning that it lowered its earnings guidance for the year.

While management stipulated that prospects remain strong for the fiscal year, earnings guidance was reduced on account of worse-than-expected first quarter results, a higher interest rate cost for a convertible debenture than originally assumed prior to crippled credit market conditions and a slower-than-anticipated rollout of its production chemicals business unit to additional geographic areas.

Shares slumped 15%, or $2.86, to $16.31 at 10:31 a.m. ET. For detailed price information and recent news stories about Flotek Industries, click FTK.   

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


• NVE Corp. (NVEC), up 30% on news of a rise in third-quarter profit and an analyst upgrade.
• World Acceptance Corp. (WRLD), up 24% on news of an increase in third-quarter net income.
• VanceInfo Technologies Inc. (VIT), up 22%.


• Mercury Computer Systems, Inc. (MRCY), down 31% on news of a disappointing fiscal third-quarter earnings outlook.
• Flotek Industries, Inc. (FTK), down 29% on news it has lowered its earnings guidance for 2007.
• Shenandoah Telecommunications Co. (SHEN), down 18%.

Flotek Industries, Inc. (NYSE: FTK) shares are plummeting after the Houston-based company lowered its fiscal 2007 earnings guidance to a range of $0.88 to $0.92 per share, from previous guidance of earning $1 per share. Analysts, on average, expect Flotek to earn $1.02 per share.

“The growth fundamentals of our core businesses remain sound, and the pace of North American oilfield service activity seems to be strengthening in January,” CEO Jerry Dumas said in a statement. “We believe the business line additions of the last several years will continue contributing to growth in 2008 and beyond as these businesses are integrated and ramp-up matures.”

The firm, a supplier of drilling and other services to the energy and mining industries, said general and administrative expenses are expected to be about 30% higher in the fourth quarter of 2007 than in the third quarter of 2007.

In midday trading, FTK shares are plunging 26.83%, or $6.83, at $18.63. Over the last 52 weeks, shares have ranged from $17.55 to $31.25.

The Russell 2000 (NYSE: IWM) fell extra hard today as the major U.S. indices tumbled on news of poor corporate earnings and unimpressive economic reports. The small-cap index lost 32.84 points, or 3.97%, to 795.18—its biggest percentage loss this year. The Dow Jones Industrial Average (INDU) tumbled 362.14 points, or 2.60%, to 13,567.87.

On a year-to-date basis, the Russell 2000 has increased 0.99%, while the Dow has added 8.76% and the S&P 500 has gained 6.48%.

The day began with steep declines on news that Exxon Mobil Corp. (NYSE: XOM) suffered a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations, while Citigroup Inc. (NYSE: C) was downgraded to “sector underperform” from “sector perform” by investment bank CIBC World Markets over concerns that it might have to cut its dividend to shore up its capital.

Small caps led the way down as stocks dove so sharply that trading curbs were introduced to prevent a massive sell-off.

Investors also had to digest economic news, when the U.S. Commerce Department reported that personal income increased at a seasonally adjusted rate of 0.4% in September, as expected, compared with a rise of 0.3% in August.

However, personal consumption in September increased 0.3%, below the projected rise of 0.4%. That’s a worrying sign that the American consumer might be cutting down on spending in the face of higher oil prices and a recession in the housing sector. In August, personal consumption added a downwardly revised 0.5%.