Tag - Jav

Stocks continued their slide today as traders are holding tight until they get the Fed's word on the economy. Bernanke & Co. are expected to wrap things up tomorrow, so we could see another round of lower closing prices. 

The Dow closed down 96.50 points at 9,241.45; the Nasdaq finished at 1,969.73, down 22.51; and the S&P 500 fell back below 1,000 to finish the day's session at 994.35, down 12.75 points. 

Stocks in the Russell 2000 were down 9.75 points to end at 562.12. 

Oil closed at $69.38, down $1.22 and gold was at $946.20, up $1.20.
Bucking the downward trend were small-caps like Avanir Pharmaceuticals (Nasdaq:AVNR) up 30%; EchoStar (Nasdaq:SATS) up 19%; and Ivanhoe Energy (Nasdaq:IVAN) up 15%.  

Trending down with the broader markets many small-cap outpaced the market's fall, including Anthracite Capital (NYSE:AHR), down 30%; Javelin Pharamceutical (Amex:JAV), down 27%; Petroleum Development (Nasdaq:PETD), down 22%; and Flotek Industries (NYSE:FTK), down 20%. 

*****Have you noticed that analysts are starting to downgrade stocks? Sprint Nextel (NYSE:S), Yum Brands (NYSE:YUM), PETsMART (Nasdaq:PETM), MBIA (NYSE:MBI) and Aegon (NYSE:AEG) were all marked down by analysts yesterday.  
Coverage was initiated on American Express (NYSE:AXP) at "Sell" by Ladenburg Thalman. Boeing (NYSE:BA) and Research in Motion (Nasdaq:RIMM) have also been downgraded in the last few days.  

So what gives? If everyone's so bullish right now, why are stocks getting downgraded?  
First, stocks have rallied strongly since March. And second, there's no guarantee that earnings can continue to rise. The analysts may be playing it safe, but investors should take note.  

*****AIG (NYSE:AIG) has doubled in the last three days. If there was ever a company that shouldn't double, it's AIG. The government owns something like 90% of the company. And it's actively selling off its important pieces to pay off debt. It's highly unlikely there will be any return for common shareholders.  

And if a completely speculative stock like AIG is moving, we might expect to see others. And sure enough, General Motors, which now carries the ominous name Motors Liquidation Company (MTLQQ.PK), has very nearly doubled in the last week. I don't think that's a good sign for the health of the stock market.

*****Word is that more traders think the dollar may have put in an important low. That would be bad for stocks and commodities. To follow the action, watch the iShares Barclay's 20+ Treasury Bond Fund (TLT).

When this ETF rallies, stocks are usually selling off. And the chart for TLT shows a pretty decent looking double bottom at $90.

*****The latest FOMC meeting starts today. Nobody really expects the Fed to raise interest rates. Even the inflation crowd has to admit that the economic recovery is too frail for higher rates. Still, judging by the declines in the stock market, investors are nervous about what the Fed has to say.

Alan Greenspan used to try to let his words act as monetary policy. Instead of actually moving rates, he would voice his bearish opinion, in the hope that he could keep a lid on asset prices.

It didn't work. And I hope Bernanke doesn't make the same mistake. There's no substitute for actual changes in rates. And despite the weak economy, investors could probably use a message about asset bubbles and risk.  

*****The Managed America Internet video conference aired last night with great success. You can still catch it if you missed. There's a replay available HERE if you're interested in discovering the trends that will affect your investments for the next couple of years and how you can profit from them.

Ian Wyatt
Editor
Daily Profit

P.S. Investors have been asking me about commodities plays. They know that long term inflation will kick in once the recovery starts to ramp up and that will drive commodities, and the share prices of the underlying stocks, through the roof. My Global Commodity Investing advisory service is benefiting from current commodity prices and will provide one of the only safe havens for profits when inflation picks up. Click here to find out more about Global Commodity Investing.

 

Small-cap stocks staged an impressive bullish reversal Thursday, rejecting a morning slide to five-week lows as a rally in retail and chipmaker stocks plotted an afternoon recovery course for stocks in general. Today's small-cap gainers were Cypress Bioscience (Nasdaq:CYPB), CryptoLogic (Nasdaq:CRYP) and Javelin Pharmaceuticals (AMEX:JAV).

Other Market Watch highlights included:

• The weekly claims report came in at 524,000, which was near the projection of 520,000.
• The PPI number was at minus 1.9%, also reasonably close to the consensus guess of minus 2.0%.
• The NY Manufacturing survey was at -22, slightly better than the forecast of -25.
• Talk of another large government money float to embattled banks also played a role in turning the selling tide.
• House Dems released plans for an $825B stimulus plan, the Senate was slated to vote on the $350B in TARP funding this afternoon.
• Even as the market was sinking through midday trading today, retail stocks were hanging tough, suggesting that investors were scouting for buying opportunities.
• Mortgage rates on 30-year fixed loans hit record lows this week and mortgage applications have tripled in less than two months.
• Crude oil prices took another hit today, sinking 5%, or $1.88, a barrel to $35.40.

Small-Cap Gainers:

• Forest Labs and Cypress Bioscience announce FDA approval for Savella; Cypress shares closed up 33%. See (CYPB).
• CryptoLogic closed up 18.3% after reporting that Q4 trading is in line with expectations. See (CRYP).  
• Javelin Pharmaceuticals Inc. rallied 7% on a volume spike amid news that the firm signed a $71 million deal for a European marketing partnership. See (JAV).

Small-Cap Losers:

• Marshall & Ilsley closed down 26% after falling to a Q4 loss of $403.9M, cutting 850 jobs. See (MI).
• Liberty Shipping withdraws offer for International Shipholding Corporation; ISH shares fell 26%. See (ISH).
• Red Robin Gourmet Burgers Inc. closed down 13% and has been sinking fast the last several sessions. See (RRGB). 
  

Small-cap stocks remained sharply lower into mid-session trading, pulled down by sinking bank and financial stocks, which cascaded into other groups. A fresh batch of economic data this morning was weak as expected, but relatively tame and did little to lessen ongoing worries about the credit crunch and a deep recession.Some of today’s small-cap gainers were Javelin Pharmaceuticals Inc (NYSE:JAV), Peregrine Pharmaceuticals Inc. (Nasdaq:PPHM) and West Marine, Inc. (Nasdaq:WMAR).

Other Market Watch highlights today included:

• Copper pulled into negative territory on the economy jitters and a strong dollar keeping many physical markets on the defensive.  
• Crude oil futures tumbled below $35 a barrel to fresh contract lows today amid worries about global demand.  
• Energy shares were also starting to sink heading into the afternoon, with the Energy Select Sector SPDR Fund off 2.7%.  
• The KBW Banking Index was down 8.5% at midday and the Financial Select Sector SPDR Fund was off 6.6%. 

Small Cap Gainers:

• Javelin Pharmaceuticals Inc. rallied 21% on a volume spike amid news that the firm signed a $71 million deal for a European marketing partnership. See (NYSE:JAV).  
• Peregrine Pharmaceuticals Inc. climbed 7% to six-month highs on a volume burst. See (Nasdaq:PPHM).  
• West Marine, Inc. raises FY 2008 earnings outlook; shares up 7%. See (Nasdaq:WMAR).
• Rocky Mountain Chocolate Factory Inc. is seeing its best volume in more than a month, rising about 1.7% in the process. See (Nasdaq:RMCF).

Small Cap Losers:

• Liberty Shipping withdraws offer for International Shipholding Corporation; ISH shares fall 25%. See (NYSE:ISH).  
• Marshall & Ilsley is down 23% after falling to a Q4 loss of $403.9M, cutting 850 jobs. See (NYSE:MI).
• Cynsosure Inc. gapped lower and fell 13% as the maker of medical treatment systems for aesthetic procedures released preliminary results. See (Nasdaq:CYNO).   
• Red Robin Gourmet Burgers Inc. is down 12% and has been sinking fast the last several sessions. See (Nasdaq:RRGB).

Small-cap stocks remained sharply lower into mid-session trading, pulled down by sinking bank and financial stocks, which cascaded into other groups. A fresh batch of economic data this morning was weak as expected, but relatively tame and did little to lessen ongoing worries about the credit crunch and a deep recession. At 12:40 p.m. ET, the Russell 2000 (NYSE:IWM) was down 13.18, or 2.91%, at 439.99, slipping to the lowest intraday point since early December.

The slump in financial companies was reflected in the S&P groups, with the worst performing sectors coming from diversified banks, regional banks, diversified financial services firms, investment banks and specialized finance companies. Other groups struggling today included broadcasters, real estate services and trusts, coal and office electronics firms. On the upside, retailers were among the best performers so far today, and the S&P Retail Index was actually up about 1%. Internet retail, home improvement retail, home furnishing retail and automotive retailers were all among the best group performers.

The big drag on stocks this week has come from the banking arena. After getting plowed Wednesday, bank stocks were once again under a selling flurry today. The KBW Banking Index was down 8.5% at midday and the Financial Select Sector SPDR Fund was off 6.6% as Citigroup Inc. (NYSE:C), once the world’s largest bank, appears to be teetering on the edge and the new No. 1 U.S. bank, Bank of America Corp. (NYSE:BAC) says it needs money to absorb losses linked to the Merrill Lynch purchase. BAC shares were off a jaw-dropping 20%, while C was down 16%, as the latter slipped below $4 share.

Energy shares were also starting to sink heading into the afternoon, with the Energy Select Sector SPDR Fund off 2.7%. Crude oil futures tumbled below $35 a barrel to fresh contract lows today amid worries about global demand. Commodities in general were struggling today, with copper pulled into negative territory on the economy jitters and a strong dollar keeping many physical markets on the defensive. The greenback was up about 0.8% against the euro following rate cuts . . .

Javelin Pharmaceuticals (AMEX: JAV) is all about controlling pain. The company now has three products it is planning to introduce in upcoming quarters, and approvals would not only ease patient suffering but give investors relief as well.
 
Based in Cambridge, Mass., Javelin is an emerging specialty pharmaceutical company that searches out unmet and underserved needs in pain management. Incorporated in 2005, Javelin’s three product candidates are designed to better relieve pain with fewer adverse side effects and faster results than other treatments. The company has successfully retained intellectual property rights on these products, extending the term of commercial exclusivity.

Rylomine, or intranasal morphine, is one product in Javelin’s pipeline. It is in Phase III development in the United States for acute moderate-to-severe pain and in Phase II studies in Europe. Rylomine works faster than oral morphine and does not require professional medical assistance, as injected morphine usually does. A second product is PM-150, or intranasal ketamine. A formulation of ketamine, a non-opiate, the product is in Phase III trials in both the United States and Europe.

It’s the third offering—Dyloject—that’s of the moment. Dyloject is a formula for injectable diclofenac and is in a Phase III trial in the United States and awaiting approval in the U.K. Diclofenac, an NSAID, is widely prescribed for post-operative pain. Dyloject is in development in the United States for post-surgical pain; in the U.K., it additionally targets acute pain.

The wait for regulatory approval of the U.K. plant for Dyloject has put investors on edge. Originally hoped for by the end of summer, it is still expected soon: in late September at the UBS Global Life Sciences Conference, Fred Mermelstein, founder and president, said the company expects approval in the near term and plans for a U.K. commercial launch in the fourth quarter. Javelin has been hiring sales people for the rollout, which is expected to extend into the EU in 2008.

Just this month, Patricia Bank, analyst at Pacific Growth Equities, said in a research note that she fully expects the Dyloject manufacturing plant to be approved. “However, after speaking with industry consultants, we are resigned to the possibility that the agency may request additional minor corrective actions,” she said, adding that this would be routine practice.

Javelin Pharmaceuticals Inc. (AMEX: JAV) shares are up after the firm announced before the opening that it was granted a patent that will strengthen protection of PMI-150, its postoperative pain medication.

“This new patent, directed to Javelin’s anticipated commercial formulations, recognizes Javelin’s continuing ability to develop first in class, novel pharmaceutical product formulations to address unmet medical needs in the acute pain care market,” Fred Mermelstein, Javelin’s president, said in a statement. “Upon approval, PMI-150 will be the only intranasal ketamine product offering physicians and patients a non-opioid alternative for treatment of moderate to severe pain.”

In midday trading, JAV shares are up 2.16%, or $0.11, at $5.21. Over the last 52 weeks, shares have ranged from $2.66 to $7.60.

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

Javelin Pharmaceuticals Inc.’s stock (AMEX: JAV) dipped this morning on heavy volume after the Cambridge, Mass.-based drug developer announced plans to sell 7.1 million shares of its common stock in an underwritten public offering at a price of $6 per share.

The firm expects to receive net proceeds of about $39.3 million from the sale. It plans to use the money to fund clinical research and development programs, the commercialization and manufacturing of its product candidates, and for other general corporate purposes.

The offering is expected to close on or about May 16.

Javelin has granted the underwriters a 30-day option to purchase up to an additional 1.065 million shares of common stock to cover over-allotments, if any.

U.S. stocks are gaining after Thursday’s steep drop, after news core producer prices stayed flat in April.