Tag - Gsi

As of press time, 1:00 P.M. eastern, stocks are trading down. The Dow was at 9,324; the Nasdaq at 1,987; and the S&P 500 holding over the crucial 1,000 level at 1,005.

Holding their own were small-cap stocks in the Russell 2000, down on 1/10th of one percent at 572.

Small-cap leading today's declines include Triad Guaranty (Nasdaq:TGIC) down 21% on reporting after Friday's close that the firm posted a net quarterly loss of $359 million versus a net loss of only $199 million from the year ago same period; General Steel Holdings (NYSE:GSI) down 13% on reporting that Q2 losses had widened to $31.8 million from $24.3 million; and Allied Capital (NYSE:ALD) down 13% posting Q2 losses of $0.16 per share and remaining in default on its debt.

That stocks are trading down as little as they are suggests traders are pausing as they await major retailer earnings reports and the results from the Federal Reserve meeting that begins on Tuesday. While the general expectation is that the Fed will maintain rates where they are, they are expected to possibly suggest an extension of the Term Asset-Backed Securities Loan Facility (TALF). The TALF was recently broadened to include commercial mortgage-backed securities.

*****Nobel Prize winning economist Paul Krugman thinks August is the trough month for the U.S. economy. And yes, he is reading a lot into the improved unemployment numbers from July.

Of course, it took trillions in direct spending, guarantees and loans to do it, but he believes we've got actual growth coming. It's worth noting, too, that Krugman estimates the stimulus plans have saved 1 million jobs. So, without the stimulus, unemployment would be around 12%.

*****Krugman's not the only one feeling good about the economy. Also at the Capital Markets Symposium in Kuala Lumpur, economists Laura Tyson (White House economic advisor) and Raghuram Rajan (former IMF lead economist) echoed his feelings. We even heard that a new bull market is here from Goldman's reclusive strategist Abby Joseph Cohen. 

The evidence? Well, there's the improved unemployment numbers, better than expected Q2 GDP number, improved manufacturing numbers, and improvement in the Case-Shiller home price index.

What's missing? Retail sales and commercial real estate.

*****Last week, we got sales reports from a variety of retailers, and they were not good. Clearly with 6.5 million people out of work, there's simply not as much money to be spent. But perhaps equally important is whether employed consumers start to feel more secure and start spending more.

This week, we get earnings from Wal-Mart (NYSE:WMT) and Macy's (NYSE:M). I expect Wal-Mart will be fine. I'm not so sure about Macy's. Investors are also looking forward to back-to-school shopping. Early expectations are that sales will not be good for back-to-school. That probably means there's room for an upside surprise.

Of course, stabilization of the unemployment rate is critical for spending. But so is new job creation. And frankly, that still seems likely to take some time. It's likely that GDP growth is capped at 2% for 2010, and probably 2011, too.

*****We've discussed commercial real estate here in SCI Daily. Now, the Fed appears ready to discuss this issue. It's reported that the FOMC will have commercial real estate on the agenda at this weeks' meeting. That sounds like bad news for the bears…

If the Fed wants to do something about commercial real estate, it certainly can attack the problem via interest rates or loan guarantees. And with another weight lifted off the market's shoulders, we could expect stock prices to head higher.

*****The SmallCapInvestor PRO portfolio is doing exceptionally well. Open positions include gains of 34%, 45%, 67%, 70% the open positions current portfolio. We've racked up 15 winning recommendations and just one 3% loser. Click here if you're looking to add some juice to your investment returns.

*****I'd like to thank SCI Daily readers for your help with the T-shirt slogan contest to support the launch of my first book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks. We've stopped taking submissions for the slogan. We're going through them now and will post the very best to our Facebook page for you to vote on. Watch this space for more information and how you can vote.

Everyone who submitted a T-shirt slogan received a 30-day, 100% complimentary trial to my SmallCapInvestor PRO advisory service. The winner of the voting process gets a one-year subscription to ALL of my advisory and trading services ($2,680 value), plus a signed copy of the book and three t-shirts.

*****The Managed America Internet video conference airs tonight at 6:00 P.M. It's free to attend and there's still time for you to register. Click here to register for this free online event.

Best Regards,

Ian Wyatt
Editor
SCI Daily

Heritage Commerce Corp. (Nasdaq:HTBK), General Steel Holdings Inc. (Nasdaq:GSI) and Vanda Pharmaceuticals Inc. (Nasdaq:VNDA) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Diamond Hill Investment Group (Nasdaq:DHIL), C&F  Financial Corp. (Nasdaq:CFFI), First Citizens Bancorp Cleveland (Nasdaq:FCZA), bebe stores Inc. (Nasdaq:BEBE), United Western Bancorp Inc. (Nasdaq:UWBK) and Parke Bancorp Inc. (Nasdaq:PKBK).

Oncothyreon Inc. (Nasdaq:ONTY), LCA Vision Inc. (Nasdaq:LCAV) and Valassis Communications Inc. (Nasdaq:VCI) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: AirMedia Group Inc. (Nasdaq:AMCN), Gainsco Inc. (Nasdaq:GAN), Telestone Technologies Corp. (Nasdaq:TSTC), 3SBio Inc. (Nasdaq:SSRX), Park-Ohio Holdings Corp. (Nasdaq:PKOH) and General Steel Holdings Inc. (Nasdaq:GSI).

General Steel Holdings Inc. (Nasdaq:GSI), Kronos Worldwide Inc. (Nasdaq:KRO) and Amedisys Inc. (Nasdaq:AMED) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Victory Acquisition Corp. (Nasdaq:VRY), Thompson Creek Metals Co Inc. (Nasdaq:TC), Meridian Bioscience Inc. (Nasdaq:VIVO), Perry Ellis International Inc. (Nasdaq:PERY), America Service Group Inc. (Nasdaq:ASGR) and TeleCommunication Systems Inc. (Nasdaq:TSYS).

Small-cap stocks turned lower into midday trading, pulled down by worries about the economy, sinking REITS, soft financial stocks and concern that a big stimulus plan announced by China overnight might not be enough to jolt worldwide economic conditions out of the doldrums. Today’s small-cap gainers are AIG (NYSE:AFF), General Steel Holdings Inc. (NYSE:GSI) and Scopus Video Networks (Nasdaq:SCOP).

Other Market Watch highlights today included:

• S&P's: U.S. REITS may face more negative rating actions; struggling capital markets, awful real estate fundamentals also threaten REITS.  
• Energy traders continue to be ultra sensitive to declines in equities, fearing a troubled economy will squash demand.  
• Coal, agriculture products, aluminum, gold, metals and mining stocks and oil and gas drillers are top performers today.  
• The Russell was the first major index product to slip into the red, beating the Dow and S&P 500 into negative territory by about an hour.  

Small Cap Gainers:

• U.S. plans more aid for AIG; shares up 62%. See (NYSE:AFF).  
• General Steel Holdings Inc. rallied 21% ahead of its earnings release on Friday. See (NYSE:GSI).  
• Scopus Video Networks announces record Q3 2008 results; shares flying 15% higher. See (Nasdaq:SCOP).
• Top executives to buy back shares of VisionChina Media; shares up 15% in morning trading. See (Nasdaq:VISN).  
• Silver Standard last week turned to profit in Q3; shares up 15% today, rising on a commodities boost seen in the market. See (Nasdaq:SSRI)


Small Cap Losers:

• Southwest Water Company slipped 21% after announcing a delay in filings and a postponement on a conference call. See (Nasdaq:SWWC).  
• General Growth Properties down nearly 20% after a myriad of class-action lawsuits were announced against the REIT over the weekend. See (NYSE:GGP).  
• Clear Channel Outdoor Holdings Q3 profit declines; shares slump 18%. See (NYSE:CCO).  
• Newcastle Investment Corp. clocked a Q3 loss on Friday; shares are 17% lower today. See (NYSE:NCT).

Small-cap stocks turned lower into midday trading, pulled down by worries about the economy, sinking REITS, soft financial stocks and concern that a big stimulus plan announced by China overnight might not be enough to jolt worldwide economic conditions out of the doldrums. At 12:16 p.m. ET, the Russell 2000 (NYSE:IWM) was down 4.05, or 0.80% at 501.75. The Russell was the first major index product to slip into the red, beating the Dow and S&P 500 into negative territory by about an hour.

There are always concerns about how the numbers actually shape up when dealing with details out of China. Skeptics looked at the plan calling for $586 billion worth of stimulus and wondered if most of that money was already planned anyhow, or just how much would actually be put to work. Still, the overall sense was that the China news positive, but that there were still plenty of landmines to avoid in coming months.

Commodity shares were the top performers through the morning, bolstered by the China news, by oversold conditions and by a mild dip in the U.S. dollar versus the euro. Coal, agriculture products, aluminum, gold, metals and mining stocks and oil and gas drillers were among the top broad market sectors today. Meanwhile, anything REITS was getting hammered, as were automakers. Wireless telecoms and investment bank stocks were also attracting heavy selling.

Crude oil prices actually slipped into the red by midday, giving back $4 a barrel worth of gains from overnight. Energy traders continue to be ultra sensitive to declines in equities, fearing a troubled economy will squash demand.

It was interesting to see that the Commodity Research Bureau Index of 19 physical markets was only up 1.4% at midday, not all that dramatic of a move given the overnight rally in crude oil, gold and copper from the China news. Gold seemed to be best commodity performer, perhaps tied to inflation positioning down the road, but commodities in general were backing off the morning highs as the day . . .

General Steel Holdings Inc. (Nasdaq:GSI), Delta Petroleum Corp. (Nasdaq:DPTR) and Logility Inc. (Nasdaq:LGTY) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Pike Electric Corp. (Nasdaq:PEC), VisionChina Media Inc. (Nasdaq:VISN), Silver Standard Resources Inc. (Nasdaq:SSRI), Young Innovations Inc. (Nasdaq:YDNT), TBS International Ltd. (Nasdaq:TBSI) and Eagle Bulk Shipping Inc. (Nasdaq:EGLE).

Here are the biggest percentage gainers among small caps:

SI Financial Group Inc. (Nasdaq:SIFI), National Coal Corp. (Nasdaq:NCOC) and MAP Pharmaceuticals Inc. (Nasdaq:MAPP) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Griffon Corp. (Nasdaq:GFF), General Steel Holdings Inc. (Nasdaq:GSI), Metalico Inc. (Nasdaq:MEA), Titan Machinery Inc. (Nasdaq:TITN), Cal-Maine Foods Inc. (Nasdaq:CALM) and Exide Technologies (Nasdaq:XIDE).

Here are the biggest percentage losers among small caps:

In China, coal is clearly king, but steel is eyeing the crown. After all, China produces and consumes one-third of the world's steel. And while the United States and European Union economies appear destined to retreat this year, China's still-growing economy will likely continue to drive strong domestic and global steel demand, according to China's steel industry's most recent monthly market report. Perfect news for General Steel Holdings, Inc. (NYSE:GSI), a diversified Chinese producer of steel products.

Chinese steel has been in the international headlines lately: last month, much to the chagrin of Beijing, the U.S. Commerce Department slapped a combined import duty of around 700% on steel pipe exported by The Shuangjie Group, a major steel pipe producer in China, to offset Chinese government subsidies, which it says amounts to "unfair" pricing practices. Two weeks ago it was reported that smaller Chinese steel companies have been wooing foreign investors in a bid to gain access to vital funding, markets and technology and avoid being gobbled up by the country's state-run steel behemoths. This week, Tangshan Iron & Steel Group Co., China's third-largest steel producer by output, formally merged with smaller rival Handan Iron & Steel Group to create Hebei Iron and Steel Group, supplanting Baosteel Group Corp. as the country's largest steel maker.

In a nation where the top-20 companies account for 50% of all steel production (with a goal of having the top 10 firms produce half of the nation's steel by 2010), one smaller outfit that seems to be holding its own is General Steel Holdings. Through its Daqiuzhuang Metal subsidiary, General Steel manufactures hot-rolled carbon and silicon steel sheets that are used in the production of tractors and agricultural equipment, shipping containers and in other specialty markets. Its Baotou Steel Pipe Joint Venture produces spiral-weld steel pipes for customers in the gas, . . .

Northern Technologies International Corp (Nasdaq:NTI), Community Partners Bancorp (Nasdaq:CPBC) and Akeena Solar Inc (Nasdaq:AKNS) are among the biggest percentage gainersin Wednesday's trading among companies with market capitalizations under $1 billion.

General Steel Holdings Inc (Nasdaq:GSI), Gevity HR Inc (Nasdaq:GVHR) and Himax Technologies Inc (Nasdaq:HIMX) are also among the biggest percentage gainers.

Here are the biggest percentage gainers among small caps:

General Steel Holdings Inc (Nasdaq:GSI), United Community Bancorp (Nasdaq:UCBA) and Exar Corp (Nasdaq:EXAR) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $750 million.

Preferred Bank (Nasdaq:PFBC), Southcoast Financial Corp (Nasdaq:SOCB) and Firstservice (Nasdaq:FSRV) are also among the biggest percentage losers.

Here are the biggest percentage losers among small caps:

Waste Industries USA, Inc. (Nasdaq: WWIN), Columbus McKinnon Corp. (Nasdaq: CMCO) and EDAC Technologies Corp. (Nasdaq: EDAC) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are posting solid gains this morning on news of better-than-expected third-quarter earnings.

At 10:33 a.m. ET, the small-cap index rose 3.79 points, or 0.47%, to 813.87. The Dow was up 75.28 points, or 0.55%, to 13,642.25.

The bulls are roaming Wall Street this morning in reaction to upbeat earnings news from major corporate players.

Apple Inc. (Nasdaq: AAPL) got the party started after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.

Helping set the positive tone is AT&T Inc. (NYSE: T), the largest U.S. telecommunications company, which announced that its third-quarter net income increased 41%, mostly due to its acquisition of BellSouth Corp.

Also contributing is credit card issuer American Express Co. (NYSE: AXP), which reported this morning that third-quarter profit rose 10% while revenue added 11%.