Tag - Hun

The broad markets were a mixed bag today with the Dow closing down to 8,299 while the Nasdaq and the S&P 500 Index closed up at 1,792 and 901, respectively.

The Russell 2000, a composite of the largest 2,000 small-cap stocks, closed up almost 1% to 494.58.

Leading small-cap gainers today was American Greetings (NYSE:AM) up 52%. Other gainers in the small-cap space include Stoneridge (NYSE:SRI) up 28%; Atlas Pipeline (NYSE:AHD) up 20%; and Orckit Communications (Nasdaq:ORCT) up 25%.

Small-cap decliners for today include Allied Healthcare Products (Nasdaq:AHPI) down 13% on announcing posting a Q3 loss of over $450,000 versus a profit of $100,000 in the year-ago period, despite cost reduction measures.

Other small-cap decliners include Huntsman (NYSE:HUN) down 11%; grocer and food retailer Supervalu (NYSE:SVU) down 12%; and one of Monday's favored stocks, MTR Gaming Group (Nasdaq:MNTG), was down 12%.

*****The FOMC announced no change to the overnight lending rate later today.

In other words, there's no way this Fed can say anything about supporting a strong U.S. dollar with anything approaching credibility.

Oil, steel, gold and other commodities all rallied as the dollar weakened against the euro and the yen. When the dollar falls in value, you need more of them to purchase things. 

*****Extra dollars also come in handy when they are your protection for loans that you've made that might not get paid back. That's the case for Bank of America (NYSE:BAC), which is about to exchange 200 or so million shares of new stock for preferred shares. This move will effectively take a few billion dollars from shareholders and put it in the banks' coffers.

*****Monday, the World Bank lowered its 2009 growth forecasts for the global economy to 2.9%. This morning, the Organization for Economic Cooperation and Development (OECD) said it was leaving its 2009 forecast of a 4.1% contraction in place.

But the OECD did raise its forecast for 2010 growth to 0.7%. The OECD had been expecting a further 0.1% contraction next year.

These numbers make the OECD appear more bearish than the World Bank. However, it should be noted that the OECD represents just 30 countries. And it doesn't include the two economies that will likely post the best growth - India and China.

This is why we have been aggressively picking up Chinese stocks at SmallCapInvestor PRO. We're now holding 4 small Chinese stocks that we expect to do very well in the coming months for investors.

*****One of the stocks we recently recommended is a Chinese organic fertilizer company. China has 22% of the world's population, but only 7% of the world's arable land. And over-reliance on nitrogen-based fertilizers has leached the soil of nutrients and led to awful water pollution. 

Organic fertilizers represent a fundamentally different approach to feeding plants. Nitrogen-based fertilizer is dumped on fields and the plants' roots absorb the nutrients.
The nitrogen also runs off during rains and ends up in waterways and bodies of water causing algae blooms and dead zones. Organic fertilizers, on the other hand, make the soil itself healthier and able to provide the nutrients the plants need without the harmful run-off.

So not only can you re-invigorate your soil and your plants, you virtually eliminate run-off pollution and waste. 

The market potential for this organic fertilizer company is awesome. That's why it has projected 35% growth rate for the next 5 years. But with a forward P/E of 8.5, it's unlikely to remain a $7 stock for long. If you're interested, you can find out about this dynamic company HERE.

*****We'll be discussing our bullish outlook for commodity stocks in tonight's Internet Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air tonight, Wednesday, June 24 at 6:00 P.M. It's free to attend, there's still room and you can sign up HERE.

A fresh batch of economic data today was predictably awful, with the New York Manufacturing Survey . . .

Small-cap stocks started out the week with a whimper as bleak manufacturing data, sinking financial and homebuilder shares and money flow away from equities took a toll on the market. The Russell 2000 (NYSE:IWM) closed down 15.86, or 3.39%, at 452.57 and is now down 41% for the year, while the Dow is off 35% and the S&P 500 down 41%.

Bank and financial shares have been a persistent drag on the market in recent days. The big news on the banking front today was an analyst downgrade on JP Morgan Chase and Co. (NYSE:JPM), which pulled down the rest of the financial universe. JPM shares lost 7.4% on the day, and the Financial Select Sector SPDR was off 4.1%. The market also was reluctant to buy bank and financial stocks ahead of earnings releases from Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS); both firms lost some 1% on the day. Treasury market yields tumbled some 2% on the day, indicating that money was moving toward safe-haven outlets in concert with the weak tone in equities.

A fresh batch of economic data today was predictably awful, with the New York Manufacturing Survey sinking to a record low and the industrial production report showing a decline of 0.6%. That said, both of the reports were actually better than forecast and a much worse reading on manufacturing overnight in Japan didn’t stop the Nikkei from rising 5.2%, so it would be presumptuous to blame today’s . . .

Small-cap stocks extended the morning slide into midday trading, with financial, tech and homebuilder shares overpowering gains in energy and commodity names. Analyst downgrades for key companies in the financial and technology arenas played a role in magnifying worries about consumer spending and the never-ending credit crisis. Some of today’s small-cap gainers are Wachovia Securities (NYSE:MTN), Excel Maritime Carriers (NYSE:EXM) and Teck Cominco (Nasdaq:TCK).

Other Market Watch highlights today included:

• Crude oil prices were up some $3/barrel into the open, pushing back above the key $50 level ahead of an OPEC meeting later this week.  
• Energy markets were on firm footing this morning, which should provide a lift to energy-related stocks.  
• European shares were basically flat heading into the U.S. open, but Asian markets were in rally mode overnight.  
• Hopes for a quick package to keep U.S. carmakers away from bankruptcy played a big role in overnight gains in Asian trading. 

Small Cap Gainers:

• Wachovia Securities upgrades Vail Resorts to "outperform;" shares pop 15%. See (NYSE:MTN).  
• Excel Maritime Carriers up 13% on heavier-than-average volume. See (NYSE:EXM). 
• Teck Cominco up 12% after reporting it will suspend operations at its Pend Oreille zinc mine. See (NYSE:TCK).  
• Sims Metal Management climbs 8% after the small cap signed a 20-year deal with New York City to process the city's recyclables, with a 20-year renewal clause. See (NYSE:SMS).  

Small Cap Losers:

• Developers Diversified Realty says asset deal not closed, will not close in December as it had previously hoped. Shares tumble 15%. See (NYSE:DDR).  
• Hexion Specialty Chemicals, Inc. announces termination of merger with Huntsman Corp.; shares of HUN collapse 43%. See (NYSE:HUN).
• Real-estate developer Forest City Enterprises is down 12% after saying it will halt new projects, focus on reducing debt and managing existing real-estate portfolio. See (Nasdaq:FCE.A).  
• Fitch downgrades M/I Homes' IDR to 'B'; outlook negative. Shares of MHO are trading over 11% lower. See (NYSE:MHO).  

Small-caps stocks opened slightly higher, but slipped into negative territory within 25 minutes as the market juggles positive input from commodities against soft financial shares. There is something of a waiting game going on right now in anticipation of the automaker bailout, FOMC Tuesday and wreckage from the multi-billion investor swindle that was revealed late last week. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.42, or 0.30%, at 467.01.

The market is waiting for news today on the bailout proposal by White House officials for the beleaguered auto sector. Hopes for a quick package to keep U.S. carmakers away from bankruptcy played a big role in overnight gains in Asian trading.

In addition, market watchers continue to keep tabs on the Madoff trading scandal, to try and see just how deep the losses will run and what impact it will have on high-end investor funds and confidence in the trading community.

The first batch of economic data this week focused on the manufacturing sector of the economy. The numbers were predictably awful, with the New York Manufacturing Survey notching a record low reading of minus 25.8; ironically, that was still better than the projection of minus 27.5, which underscores just how bleak expectations are running right now. In the wake of the NY report, the industrial production release came out at minus 0.6%, which was also better than the forecast for a slide of 0.9%. In overnight action, the Bank of Japan’s “tankan” survey showed the largest collapse in manufacturing confidence in 34 years, but it didn’t stop the Japanese stock market from soaring 5.2% overnight amid hope for a bailout of U.S. automakers.

European shares were basically flat heading into the U.S. open, but Asian markets were in rally mode overnight. In addition to the big gains in Japan, Hong Kong shares were up 1.9%, Taiwan up 2.9%, South Korea up 4.8%, India up 1.4%, Australia up 2.3%, Singapore up 1.9% and China up 0.7%.

Energy markets were on firm footing this morning, which should provide a lift to energy-related stocks. Crude oil prices were up some $3 a barrel into . . .

Small-caps stocks opened slightly higher, but slipped into negative territory within 25 minutes as the market juggles positive input from commodities against soft financial shares. There is something of a waiting game going on right now in anticipation of the automaker bailout, FOMC Tuesday and wreckage from the multi-billion investor swindle that was revealed late last week. Some of today’s small-cap gainers are Gaylord Entertainment Co. (NYSE:GET), Clearwire Corp. (Nasdaq:CLWRD) and Ciena Corporation (Nasdaq:CIEN).

Other Market Watch highlights today included:

• Crude oil prices were up some $3/barrel into the open, pushing back above the key $50 level ahead of an OPEC meeting later this week.
• Energy markets were on firm footing this morning, which should provide a lift to energy-related stocks.  
• European shares were basically flat heading into the U.S. open, but Asian markets were in rally mode overnight.  
• Hopes for a quick package to keep U.S. carmakers away from bankruptcy played a big role in overnight gains in Asian trading.

Small Cap Gainers:

• Gaylord Entertainment Co. jumped 37% following a bullish article in Barron’s. See (NYSE:GET). 
• Clearwire Corp. rose 17% without any apparent fresh news behind the move. See (Nasdaq:CLWRD).  
• Ciena Corporation is up 8.5% in pre-market, recouping some of the drastic losses the stock saw last week after posting an unexpected Q4 loss. See (Nasdaq:CIEN).
• China Sunergy to supply 22MW solar cells to Solarwatt; shares rise 7% in pre-market. See (Nasdaq:CSUN).  

Small Cap Losers:

• Huntsman Corp. tumbled 32% on news that the company terminated a takeover deal from a chemical firm. See (NYSE:HUN).  
• Universal Truckload Services Inc. slumped 18% giving back a nice rally from last week in one quick downside swoon. See (Nasdaq:UACL).  
• Rofin-Sinar Technologies, Inc. falls 12% in pre-market after lowering Q1 2009 revenue guidance. See (Nasdaq:RSTI). 
• UAL Corp., parent company of United Airlines, is down over 3% in pre-market, despite raising $150 million on sale leaseback agreement. See (Nasdaq:UAUA).  

Small-cap stocks are expected to open flat to slightly higher, underpinned by a mild dip in crude oil prices overnight and by scattered bargain hunting following Wednesday’s decline. The Russell 2000 (NYSE:IWM) was up about 0.2% overnight, which would suggest an opening near 732.

The weekly claims report headline number came in at 381,000, which was above the median forecast of 375,000. The four-week moving average on claims edged higher, which is a mild negative. Coming up at 10:00 a.m. ET, the market will see economic data on leading indicators and the Philly Fed survey, which could impact trading direction for the morning.

In overnight trading, Asia stock prices tumbled, with China down 7.2%, Japan off 2.2%, Hong Kong down 2.2%, Australia down 1.4%, Singapore down 1.5%, South Korea down 2% and India down 2.1%. Despite the plunge in Asian indices, European shares were slightly higher heading toward the U.S. opening.

Financial shares have been slumping this week as the credit crunch continues to spark efforts to raise capital to shore up balance sheets. Oppenheimer analyst Meredith Whitney lowered earnings projections for Morgan Stanley (NYSE:MS), which could keep investment banks and the financial arena on the defensive early . . .

In the past, industrial customers maintained broad supply chains, contracting with numerous local distributors. This method is changing, though. Motivated by the need to reduce costs and improve inventory turns, most industrial customers are consolidating their supply chains and relying on first-tier distributors that can provide one-stop shopping. These customers are also demanding value-added services such as integrated supply, system design, and equipment fabrication, installation and maintenance. 

This supplier consolidation is creating budding opportunities for DXP Enterprises, Inc. (Nasdaq: DXPE) a leading U.S. supplier of maintenance, repair and operations (MRO) services, and KHD Humboldt Wedag International, Ltd. (NYSE: KHD), a global provider of plant design and equipment procurement services.    

KHD Humboldt provides industrial plant engineering services and equipment to mineral processors. It is a leading supplier to the global cement-manufacturing market and offers its customers proprietary technologies, plant and equipment design, and customized systems for process control and equipment optimization.

Formerly a merchant bank, KHD shifted its focus to industrial plant engineering in 2006. Since then, it has established operations in India, China, Russia, Germany, the Middle East, South Africa and the United States.

During the first nine months of 2007, KHD’s revenues grew 75% year-over-year to $418.8 million from $239.6 million and income from continuing operations climbed 102% to $38.6 million, or $1.27 per share, from $19 million, or $0.63 per share. New orders rose 123% in the September quarter to $240 million and exceeded $569 million for the nine-month period. Backlog totaled $762 million; nearly 90% of backlog was contracts in China, India, Russia and other emerging economies. KHD expects a 70% increase in full-year 2007 earnings to be between $1.70 and $1.75 per share.