Tag - Ipcm

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

Small-cap stocks pressed lower on the opening as a fresh batch of earnings failed to impress investors in the aftermath of Monday’s rout on financial stocks and as crude oil drifted up to $135 dollars a barrel. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was off 5.56, or 0.76%, at 731.01.

Regional banks were hammered Monday, with Marshall & Iisley Corp. (NYSE:MI) sinking 5% to 52-week lows on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set 52-week lows, losing about 10%. Unfortunately, the news remains gloomy for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) shedding 16% shortly after today’s opening. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) tumbled 22% as the firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and pay down debt.

The “headline” financial stock coming into today’s action was Morgan Stanley (NYSE:MS), which reported quarterly results that were slightly above the forecast. However, the firm was still pulled into the red, down about 6% in early trading.

Outside of the financial world, FedEx (NYSE:FDX) earnings came in below the forecast, and their outlook for 2009 was dreadfully in line with surging energy costs that are hurting results for the package courier. When the FedEx news came out before the opening, it sparked about a three handle additional decline in large-cap S&P 500 futures.

Speaking of surging energy, crude oil prices climbed back to the $135 dollar a barrel level ahead of the stock market opening on concerns about a potential strike in Nigeria that could crimp output. Crude oil pulled back toward $134 dollars, but should gather direction for the day from the latest stocks data, which will come out . . .

Quanex Corp. (NYSE:NX), Danvers Bancorp, Inc. (Nasdaq:DNBK) and IPC The Hospitalist Company, Inc. (Nasdaq:IPCM) were among the new 52-week highs established during Friday's trading among companies with market capitalizations or values under $750 million.

Axsys Technologies, Inc. (Nasdaq:AXYS), National Research Corp. (Nasdaq:NRCI) and Republic Bancorp, Inc. (Nasdaq:RBCAA) were also among the 52-week small-cap highs.

Here are Friday's 52-week small-cap highs:

Boston Private Financial Holdings Inc. (Nasdaq:BPFH), Metabolix, Inc. (Nasdaq:MBLX) and IPC The Hospitalist Company, Inc. (Nasdaq:IPCM) were among the new 52-week lows established during Monday's trading among companies with market capitalizations or values under $750 million.

Here are today's 52-week small-cap lows:

www.makosurgical.com
Nasdaq: MAKO
Scheduled for the week of Feb. 11
$76.5 million estimated proceeds
$301.7 million estimated post-money valuation

Nothing cures arthritis like simply removing the troublesome joint and replacing it with a metal prosthesis. Hip and knee replacement surgery isn’t rare, but it isn’t simple, either: if there’s a problem, the patient may lose the use of that joint permanently. As the population ages, demand for joint replacement is likely to increase, so surgeons will want to find ways to handle the volume of surgery while ensuring that patients get the care they need.

MAKO Surgical has a different approach to knee replacement. The company uses a robotically guided surgical arm (using technology licensed from IBM (NYSE: IBM)) that works through a small incision in the knee. It resurfaces the trouble spot and installs a metal covering. This works best for people in the early stages of arthritis. The technology is FDA approved but very new. Six machines have been sold and 181 procedures have been performed commercially using this technique.

The financial results are just as early stage. For the nine months ended Sept. 30, 2007, MAKO posted just $355,382 in revenue (that’s 355 thousand, not million) and lost $13.2 million. One of the venture funders, Z-KAT, is selling a small amount of its position on the offering but will still control 7.02% of the shares after the IPO closes. Neither the other investors nor the officers are selling shares. The first $4 million of deal proceeds will go to IBM under the terms of the licensing agreement; the rest will be used to fund product marketing, research and development.