Tag - Hray

Small caps are lower today following a drop in U.S. exports in March and multiple stock offerings across the board that doused enthusiasm.

At 2:04 pm ET, the Russell 2000 (NYSE:IWM) is down 2.46%, while the Dow is down 0.26% and the S&P 500 has fallen 0.97%.

New data out today showed that the U.S. trade gap widened in March for the first time in eight months and exports fell 2.4%, weighing on the market.

Small caps bucking the trend today include STEC, Inc. (Nasdaq:STEC), up 31% after reporting operating results, while small-cap Chinese seller of mobile phone ringtones and games Hurray! Holding Co., Ltd. (Nasdaq:HRAY) is up 28% on speculation that Shanda Interactive, China’s biggest online games provider, may acquire the company.

*****Oil is above $60 a barrel. Investors are buying on the expectation that the end of the recession is in sight. And hopefully, Daily Profit readers are benefiting via my recommendation of oil services company Graham Corp. (AMEX:GHM). Graham is breaking above $15 a share today. It’s now up 65% for those who have been following me for a while.

Of course, oil stocks are up on expectations. A dose of reality comes from the housing market today. It’s reported that home prices fell in 134 of the 152 metropolitan areas the National Association of Realtors tracks during the 1st quarter.

Sounds bad, but there is a silver lining. The number of homes sold more than doubled in Nevada, rose 81% in California and 50% in Arizona. These states were among the hottest real estate markets during the housing bubble, and they suffered mightily when the bubble popped. That homes are selling is far more important than the price they are selling for. Housing inventory must get turned over for the economy to improve.

*****Nobel prize winning economist Paul Krugman isn’t convinced the recession is nearing an end. He doesn’t believe economic fundamentals support the recent rally and warns that recent economic data could breed “a dangerous complacency.”

The fear, of course, is that we will have the proverbial “double dip” of recession once government stimulus money (and patience) runs out. Like in the housing market, first time buyers are assisted by an $8,000 credit. That will boost

Hurray! Holding Co., Ltd. (Nasdaq: HRAY) shares are perking up after the provider of ring tones to Chinese cell phone customers announced before the opening that it’s selling its software and system integration business to TWM Holding Co. Ltd., a subsidiary of Taiwan Mobile Co. Ltd., for $4.8 million.

The all-cash transaction is expected to close before March 31, Hurray said in a statement.

“We are extremely pleased to announce this partnership with Taiwan Mobile,” CEO QD Wang said in a statement. “This deal will sharpen our focus on our transformation strategy to become a leading entertainment content production and distribution house in China.”

Taiwan Mobile said it already owned a 5% stake in Hurray Holding.

In afternoon trading, HRAY shares are up 8.40%, or $0.43, at $5.55. Over the last 52 weeks, shares have ranged from $3.32 to $8.28.

Xinhua Finance Media Ltd. (Nasdaq: XFML), China Technology Development Group Corp. (Nasdaq: CTDC) and China Techfaith Wireless Comm. Tech. Ltd (Nasdaq: CNTF) are the most actively traded companies in Monday pre-market trading among those with market capitalizations under $750 million:

KongZhong Corp. (Nasdaq: KONG), China BAK Battery Inc. (Nasdaq: CBAK) and China Techfaith Wireless Comm. Tech. Ltd (Nasdaq: CNTF) are the most actively traded companies in Friday pre-market trading among those with market capitalizations under $500 million:

Shares of Hurray! Holding Co., Ltd. (Nasdaq: HRAY) are depressed following news released after Thursday’s close that the artist development and music production firm reported a decline in second-quarter profit and missed Wall Street’s expectations.

The net income for the period ended June 30 was $0.2 million, or $0.01 per share, below the consensus estimate of three analysts polled by Thomson Financial, who were expecting a net income of $0.04 per share. The Beijing, China-based company had a profit of $0.99 million during the same quarter of 2006.

Shares of Hurray! Holding Co., Ltd. (Nasdaq: HRAY) are rising on news after Thursday’s close that the Chinese provider of music and music-related products reported an increase in profit.  The net income for the first quarter ended March 31 was $1.0 million, a rise of 3.8% compared with $0.9 million for the first quarter of 2006.  Earnings stayed constant at $0.04 per share, just above analyst expectations of $0.03 per share.  The stock is up $0.02, or 0.41%, to $4.85.

Shares of Lancaster, Pa.-based Sterling Financial Corp. (Nasdaq: SLFI) announced after Thursday’s close that an ongoing investigation has shown that previously reported irregularities in certain financing contracts in one of Sterling’s financial services affiliates are a direct result of collusion by company employees.  Shares have added $0.80, or 5%, to $16.16.

The following small-cap companies were making news in after-hours trading Thursday:

Peerless Systems Corporation (Nasdaq: PRLS) reported a net loss for the first quarter ended April 30 of $0.8 million, or $0.05 per basic share, compared with one analyst's estimate for a loss of $0.01. In last year's first quarter, the company had net income of $2.0 million, or $0.11 per diluted share. The El Segundo-based technology provider said revenue was $4.7 million, compared with the analyst's estimate for $7.1 million and with $8.8 million in the first quarter of 2006. In a release, management said it was holding to previous forecasts for results over the rest of the year. Shares of Peerless were down $0.38, or 13%, at $2.88. 

Mountain View, Calif.-based Ditech Networks, Inc. (Nasdaq: DITC) said revenues for the fourth quarter ended April 30 were $19.2 million, down from $20.0 million in the same quarter the previous year and below analysts' expectations for $20.8 million. Diluted net income per share was $0.02, compared to expectations for $0.07 and to $0.07 in the fourth quarter of fiscal 2006. Shares of the supplier of voice processing equipment were lower after hours, trading at $8.00, down down $0.37, or 4.4%.

Verigy LTD (Nasdaq: VRGY) exceeded its guidance for revenue in the second quarter ended April 30, and shares were sharply higher in after hours trading. The Cupertino, Calif.-based semiconductor test company said revenues were $183 million, up 11% from the prior quarter and above analysts' expectations for $176.23 million. In the second quarter of fiscal 2006, revenues were $192 million. Net income for the quarter was approximately $0.36 per diluted share, matching expectations for $0.36 and ahead of the $0.22 per share in the prior quarter. The company lost $0.22 per share in the same quarter the previous year. Verigy was 10% higher in after-hours trading, up $2.49 at $27.12. 

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

Wall Street opened flat this morning as U.S. and Chinese officials begin a two-day discussion of economic issues.

At 10:05 a.m. ET the Russell 2000 was up 1.93 points, or 0.23 percent, to 835.58.  Dow Jones Industrial Average was up 13.32 points, or 0.10 percent, to 13,556.20.

U.S. Treasury Secretary Henry Paulson and Chinese government officials kick off two days of talks on a range of economic issues.  The U.S. government has long complained that China keeps its currency artificially undervalued, thus contributing to the large trade deficit between the two countries.

In business news, billionaire investor Kirk Kerkorian, who owns 56% of the MGM Mirage (NYSE: MGM) casino, announced he has bid for two of the company’s properties.  MGM is the world’s second largest casino.

The following are the most actively traded companies in Tuesday's trading among those with market capitalizations under $500 million:

The following are the most actively traded companies in pre-market trading among those with market capitalizations under $500 million:

Although many newsletter advisors focus on the overall stock market and choose stocks from a variety of sectors, some have chosen to approach the advisory field by developing an individual sector.

By focusing exclusively on a specific niche, these advisors often gain insights into trends within the sector that others may miss. One advisor who has developed an industry-leading position is Nikhil Hutheesing, whose area of expertise is the wireless market.

The editor of Forbes Wireless Stock Watch has recently added Hurray! Holding Co. LTD (Nasdaq: HRAY) – a company with a market cap of just $114 million -- to his buy list, noting that he believes the wireless play will become a “Chinese mobile powerhouse.”

Despite the volatility in China's stock market, the advisor says he remains a long-term believer. “And wireless is still among the fastest growing industries in China,” says Hutheesing.

“Some 4 million new customers sign up each month for wireless service,” says Hutheesing. “It's a big business for the government run wireless carriers such as China Mobile and China Unicom.”