Tag - Iosp

Targacept Inc. (Nasdaq:TRGT), Oneida Financial Corp. (Nasdaq:ONFC) and United Community Bancorp (Nasdaq:UCBA) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Innospec Inc. (Nasdaq:IOSP), Gaming Partners International Corp. (Nasdaq:GPIC), Summit Financial Group Inc. (Nasdaq:SMMF), MarketAxess Holdings Inc. (Nasdaq:MKTX), Superior Well Services Inc. (Nasdaq:SWSI) and Methode Electronics Inc. (Nasdaq:MEI).

Energy Solutions Inc. (Nasdaq:ES), Domino's Pizza Inc. (Nasdaq:DPZ) and NewStar Financial Inc. (Nasdaq:NEWS) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Winmark Corp. (Nasdaq:WINA), HSN Inc. (Nasdaq:HSNI), Innospec Inc.(Nasdaq:IOSP), Lear Corp. (Nasdaq:LEA), YRC Worldwide Inc. (Nasdaq:YRCW) and 3D Systems Corp. (Nasdaq:TDSC).

Here are the biggest percentage losers among small caps:

It’s been a rollercoaster ride thus far for small caps, most recently trending deeper into the red along with the S&P 500 and the Dow after a gloomy weekly unemployment claims report and a weaker-than-expected read on GDP dragged equities lower. 

At 12:46 p.m. ET, the Russell 2000 (NYSE:IWM) was down 3.44, or 0.48%, at 715.42, while the Dow down 0.98%, or 113.01, at 11,470.68.

The weekly claims number, reported this morning, spiked more-than-expected to 448,000 from last week’s 404,000 level. The claims number, which was substantially above the median forecast of a decline to 395,000, was pushed higher by an emergency unemployment program. The number was the single largest weekly claims figure in more than five years. Although this survey was taken after the numbers were collected for Friday’s monthly employment release, it has heightened jitters ahead of the Labor Department’s release tomorrow. 

The second-quarter number for GDP, also out this morning, wasn’t comforting either. The nation’s domestic growth clocked in at 1.9% for the second quarter, below the forecast of 2.3%. Additionally, GDP for the past 3 years was revised downward. Fourth quarter GDP was reduced to minus 0.2%, the first decline in quarterly GDP since 2001.

"The revisions were ugly and will fuel the recession debate," Andy Busch, global foreign exchange strategist for BMO Capital Markets, said in an email. "Today's numbers were a big disappointment and will rev up the doom-gloom crowd to call for the end of the world. July was brutal. Let's hope we can focus on the Olympics -- I'm still expecting/hoping to see a stabilization occur in August without the massive swings July presented."

Although the weak GDP number and claims took the limelight today, there was some hopeful economic news in the abyss. The Chicago Purchasing Managers report came in stronger than expected. PMI was 50.8, above the forecast of 49 and above 50 for the first time since January.

For the first time in awhile, gyrations in crude oil prices were not the focal point. Crude sold off this morning, after spiking over $4 Wednesday, and continues to tread in the red. A barrel of light sweet crude slipped $2.40 to roughly $124 mid-session.

The economic reports managed to smother uplifting merger and acquisitions news. Bristol-Myers Squibb Co. (NYSE:BMY) made a bid to acquire ImClone Systems Inc. (Nasdaq:IMCL) ...

Harris Stratex Networks Inc (Nasdaq:HSTX), Innospec Inc (Nasdaq:IOSP) and Bare Escentuals Inc (Nasdaq:BARE) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Stoneridge Inc (Nasdaq:SRI), CDI Corp (Nasdaq:CDI), Deluxe Corp (Nasdaq:DLX), Newport Corp (Nasdaq:NEWP), Arch Chemicals Inc (Nasdaq:ARJ) and RehabCare Group, Inc (Nasdaq:RquotesHB).

Here are the biggest percentage losers among small caps:

Innospec Inc. (Nasdaq:IOSP) has tumbled more than 30% in today’s trading after reporting after Wednesday’s close its second-quarter net income had plummeted. For the quarter ended June 30, net income was $0.8 million, or $0.03 per share, compared to $6.8 million, or $0.27 a share, for the same quarter a year ago. Results include and after-tax write-off of $2.5 million, or $0.10 per share, the Newark, Del.-based company said in a statement. The lower net income also includes a goodwill impairment, a restructuring charge and a real estate gain, the company said. Net sales increased 3% to $145.3 million. Analysts were expecting earnings per share of $0.40 on revenues of $147.6 million.

“Our second quarter results reflect in part our decision to write off certain costs related to potential acquisitions rather than proceed with deals that ultimately did not make sense for Innospec shareholders,” said Paul Jennings, president and CEO. “At the operating level, our Fuel Specialties business delivered another solid performance in the second quarter, although its momentum slowed somewhat as we expected.”

Shares are at $16.25 at 10:32 a.m. ET, down $7.24 from Wednesday’s close. The shares have ranged from $13.40 to $30.91 during the past year.

Innospec Inc. (Nasdaq:IOSP)
Newark, Del.
http://www.innospecinc.com

52-week low / high: $13.40 / $32.45
Shares Outstanding: 23.71million
Market Capitalization: $564.3 million

These days the pain at the pump is only getting worse. Add in the credit crisis, and “fueling up” for most businesses is nothing short of prohibitive. Not Innospec Inc. (Nasdaq:IOSP). This little company is filling up its tank and motoring forward.

The real growth, as of late, is being driven ahead by the developer of fuel additives and chemical’s fuel specialties division, which applies a blend of chemicals used as additives to a wide range of fuels to help improve fuel efficiency, boost engine performance and reduce harmful emissions.

Wondering how the fuel specialties segment is propelling growth? Just look to its end market: multinational oil companies and fuel retailers. Companies in those spaces are running as speculators bid up oil futures and emerging markets’ thirst for oil. The fuel specialties segment saw a 20% increase in sales for 2007.

More recently, growth in the fuel specialties business has been driven by new product development to address key drivers in demand for fuel additives. Such key drivers include legislation, population affluence, and energy price and availability.

Operating income for the fuel specialties segment was $18.6 million in the fourth quarter, more than double the $8.6 million a year ago, which included $6.2 million in expenses for one-time professional fees and a potential customer claim. The segment saw a 39% increase in operating income for 2007 and management is expecting the fuel specialties segment to have another solid year in 2008.

While the fuel specialties business is clearly this company’s core business and a major driver of growth, the company has two other operating segments, active chemicals and octane additives; the active chemicals segment shouldn’t be discounted.

While results for the quarter were somewhat disappointing (operating income was down 70% to $1 million from $1.7 million in the fourth quarter of 2006; gross margin was 16.8%, down from 19.1% a year ago), the company began streamlining the active chemicals business in October to focus on industry sectors, including personal care, household, industrial, plastics and paper as end markets. Its repositioning efforts should build momentum and enable it to deliver improved results in 2008.

The company’s octane business, on the other hand, seems to be running out of gas, as the end market for this segment has experienced a substantial decline in demand. While still profitable, the company expects the diminishing demand trend to continue in 2008. This segment could be a potential hindrance to the small cap if it doesn’t spin it off before the demand well runs dry.

For the fourth quarter ended Dec. 31, 2007, total revenues increased 19% to $172.7 million from $144.7 million in the fourth quarter of 2006. The company posted a net profit of $11.1 million, or $0.45 per share, compared with a net loss of $0.7 million, or $0.03 per share, for the same quarter last year. Results included a goodwill impairment charge, a small restructuring charge and a non-cash charge related to the company's pension plans.

Earnings before interest, taxes, depreciation and amortization bolted 40% in the fourth quarter to $27.3 million from $19.5 million a year ago.

For the full year ended Dec. 31, 2007, revenues were up 13% to $602.4 million from $532.1 million in 2006. Net income spiked 160% to $29.5 million, or $1.19 per share, from $11.4 million, or $0.45 per share, last year.

Although faced with a recession during the first quarter, the stock price has appreciated 69% on account of well-received fourth-quarter earnings since a dip near its 52-week low at the beginning of the year. Let’s see if this company has enough fuel in its tank for the winding road ahead when it reports first-quarter results on April 30. Then investors should have a clearer outlook on Innospec’s prospects for 2008.

Note: Innospec Inc. (Nasdaq:IOSP) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Innospec displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

Lead in water is bad news. Lead in gasoline can be the stuff of which successful investments are made, at least in the short term.

Innospec Inc. (Nasdaq:IOSP) is a fuel treatment company that produces lead-based additives used by refiners to increase the octane rating of gasoline. It has three distinct business segments: fuel specialties, active chemicals and octane additives. Its fuel specialties business works to create additives that have the ability to improve fuel efficiency, enhance engine performance and reduce emissions. The active chemicals segment focuses on the household detergent and personal-care markets, and the octane additives segment works to make gasoline burn more efficiently by boosting octane levels.

In 2007, fuel specialties accounted for 62.2% of Innospec’s net sales. Active chemicals made up 22.2% of net sales and octane additives comprised the remaining 15.6%. Although its octane additives business is profitable, the segment has been experiencing declining demand and will likely cease to exist in the next several years. The reason for this trend is that Innospec’s octane-additives business comprises sales of tetra ethyl lead (TEL) for use in automotive gasoline. Global use of TEL has been on the decline since the U.S. enacted the Clean Air Act in the early 1970s and other countries have followed suit in exiting the leaded gasoline market.

The company has anticipated the decline and has done an excellent job of growing its fuel specialties and active chemicals segments to compensate for the expected drop-off. For Innospec’s fourth quarter ended Dec. 31, 2007, the company reported . . .

The Russell 2000 (IWM) fell as investors turned their attention to the economy. The small-cap index let go 3.85 points, or 0.55%, to 698.93, its fourth decline in the past five days. The Dow Jones Industrial Average (INDU) lost 64.87 points, or 0.53%, to 12,182.13.

On a year-to-date basis, the Russell 2000 has shed 8.76%, while the Dow has let go 8.16% and the S&P 500 has slashed 9.33%.

There was no major economic news scheduled for today and little on the corporate front and stocks small and large spent the first half of the session trading sideways.

The mood in pre-market trading was slightly bearish following news that an official from the U.S. Federal Reserve said that the economy is headed for a slowdown.

“I consider it most probable that the U.S. economy will experience slow growth, and not outright recession, in coming quarters,” said Janet Yellen, president of the Federal Reserve Bank of San Francisco, in a speech in Honolulu.

Concerns about the future of the economy are what led the U.S. Congress to approve a $168 billion economic stimulus package that consists of tax rebates and business incentives. President Bush said he would sign the bill next week. Rebate checks will be mailed to households and individuals as early as late May.

Trading was volatile as the Russell 2000 seesawed up and down before falling into the red at about 12 p.m. ET, and slumping to its session low shortly before 2 p.m. ET.

The Russell 2000 (NYSE: IWM) is deep in negative territory while the Dow Jones Industrial Average (INDU) is marginally lower following news of a surprise drop in industrial production.

At 10:41 a.m. ET, the small-cap index was down 9.68 points, or 1.25%, to 761.92. The Dow was down 16.02 points, or 0.12%, to 13,094.03.

Industrial production surprisingly fell 0.5% in October, the U.S. Federal Reserve reported minutes before the opening. That’s the biggest decline since January. Economists were expecting a rise of 0.1% after industrial production added 0.2% in September.

The decline was due primarily to a 1.6% drop in utilities, while mines fell 0.6% and construction slipped 0.4%.

Capacity utilization for the total industry declined to 81.7% from 82.2% in September.

The numbers tell us that the U.S. economy is probably headed for a slowdown, as industrial production is about 20% of gross domestic product. But the on the other hand, factories have plenty of room to ramp up production without triggering inflation.

In corporate news, there was a bullish mood before the start of trading on news that analysts have raised their recommendations on computer hardware maker Hewlett-Packard Co. (Nasdaq: HPQ) and energy giant Chevron Corp. (NYSE: CVX).

Also contributing good news was Cisco Systems Inc. (Nasdaq: CSCO), after the Internet communications company authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

Stocks started in positive territory but small caps tumbled down soon afterward, while the Dow held on for longer before trimming some of its gains and eventually also slipping into the red.