Tag - Jdas

Stocks closed up today in trading that dipped downward for most of the trading session only to crawl back up in the afternoon.

The Dow was up 68 points to close at 8,916; the Nasdaq inched up in late trade to post a 7 point gain and close at 1,916; and the S&P 500 close at 955, up just over 3 points.

Contrary to the major indices, the Russell 2000 closed down nearly 2 points to 525.

Small-cap gainers were lead by JDA Software Group (Nasdaq:JDAS) of Scottsdale, Arizona, up 34% today after the company's second quarter earnings beat Wall Street projections handily. JDA makes software that helps retailers manage their inventories and as those retailers have been looking to improve their bottom lines by minimizing stock in inventory they've turned to JDA for help. According to Thomson Reuters the street was looking for profits of 30 cents per share while the firm reported 47 cents per share.

Other small-cap gainers include BioCryst Pharmaceuticals (Nasdaq:BCRX) up 22%; and Akorn (Nasdaq:AKRX) up 17%.

Leading percentage decliners for the day include Headwaters (NYSE:HW) down 23%; CIT Group (NYSE:CIT) down 22%; and LexMark International (NYSE:LXK) down 20%.

*****Caterpillar (NYSE:CAT) is up huge this morning after it blew away analysts' earnings estimates for the 2nd quarter. Caterpillar is an important proxy for global growth because it sells so many machines overseas. So when it reports earnings of $0.72 a share when it's only expected to make $0.22, it seems like a big deal.  
The assumption is that global growth is helping Caterpillar. If only it were that simple. But Caterpillar missed expected revenues by nearly a billion dollars. Analysts wanted to see $8.7 billion in revenues, but they only got $7.9 billion.  

Caterpillar benefited from cost-cutting and a lower tax rate. Since December, it has cut 17,000 full-time jobs and axed another 17,000 in part-time and contract jobs.  
Caterpillar can be commended for cutting back its production to be in line with demand. But there clearly isn't any growth here. 

*****This is a common theme so far this earnings season. Companies are talking about stability, not growth. In other words, things aren't getting worse. But they aren't getting better, either.  

Companies are beating earnings expectations through cost-cutting, which is essentially a one-time event. And in the big picture, those cost-cutting moves help profits, but ultimately remove demand for goods and services because they are adding to unemployment.  

I don't think unemployment has peaked. I also think that we will see high unemployment persist for a few years. And that will mean a long wait for robust growth from the U.S. economy.  

And to complicate things, we can also expect more regulation and higher taxes to stifle growth. I'm calling this situation "Managed America." And investors need to be prepared for how to invest in Managed America.  

I just released my "Managed America" forecast for my Top Stocks Insights advisory service. It's part of my Predictions 2009 Update special report that was just released. In the report, I outline my strategy for investing in Managed America. Click here to get your copy. 

*****Here's some great news from the commercial real estate sector. Convenience store company 7-Eleven is opening 200 new stores this year. Why? Because it's getting leases at a 30% discount form just 6 months ago. And interestingly, it's moving into some of the hardest hit real estate markets - New York and California.  
Now, 200 stores won't turn the commercial real estate market around. But 7-Eleven's move illustrates how commercial real estate, and real estate in general, will recover.  

The first step is the painful part - leases and mortgages go into default and are written off. This is a complicated process as there is usually a trail of financial obligations based on the assumption that whoever leased or purchased the real estate will be paying.   

As we've seen, defaults and foreclosure have far-reaching effects. But once the losses are taken, the property can be leased or sold at a price that makes sense for a business. In other words, a company like 7-Eleven couldn't make money at rents from six months ago. But now that the price is down 30%, suddenly it makes good business sense for 7-Eleven to open stores and hire people.  

There's a lot more pain to go through before this process actually leads to a growing economy. But it will happen, eventually.  

Best Regards,

Ian Wyatt
Editor
SCI Daily

Medicinova Inc. (Nasdaq:MNOV), Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX) and JDA Software Group Inc. (Nasdaq:JDAS) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Lannett Co Inc. (Nasdaq:LCI), RINO International Corp. (Nasdaq:RINO), Dorman Products Inc. (Nasdaq:DORM), Intellon Corp. (Nasdaq:ITLN), Fuqi International Inc. (Nasdaq:FUQI) and NeurogesX Inc. (Nasdaq:NGSX).

JDA Software Group Inc. (Nasdaq:JDAS), Medicinova Inc. (Nasdaq:MNOV) and Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: WNS Holdings Ltd. (Nasdaq:WNS), Amerigon Inc.(Nasdaq:ARGN), IncrediMail Ltd. (Nasdaq:MAIL), Hawk Corp. (Nasdaq:HWK), Protalix BioTherapeutics Inc. (Nasdaq:PLX) and Spectrum Pharmaceuticals Inc. (Nasdaq:SPPI).

East West Bancorp Inc. (Nasdaq:EWBC), Dress Barn Inc. (Nasdaq:DBRN) and Spectrum Pharmaceuticals Inc. (Nasdaq:SPPI) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Monro Muffler Brake Inc. (Nasdaq:MNRO), JDA Software Group Inc. (Nasdaq:JDAS), AgFeed Industries Inc. (Nasdaq:FEED), Mercury Computer Systems Inc. (Nasdaq:MRCY), Century Aluminum Co. (Nasdaq:CENX) and Orexigen Therapeutics Inc. (Nasdaq:OREX).

Small-cap stocks pushed lower on the open as sloppy profit numbers and weak economic data returned to center stage now that the U.S. presidential election has been decided following last night’s historic runaway victory by Barack Obama. At 10:05 a.m. ET, the Russell 2000 (NYSE:IWM) was down 7.05, or 1.29%, at 538.90.

The ISM Non-Manufacturing Survey came in at 44.4, which was well below the forecast of 48.0 and was at the lowest point in the 10-year history of the survey. Interestingly, stocks actually trimmed losses after the glum report, but remained in negative territory.

Earlier this morning, the ADP Employment Survey was reported at minus 157,000, well below the forecast for a 100,000 loss. Even though the ADP report has not been tracking very well with the Labor Department survey, today’s ADP data cast a pall on the market heading toward Friday’s big monthly employment report. In addition, the MBA Mortgage Applications Index tumbled 20.3% last week to the lowest point since December 2000 in response to a jump in fixed mortgage rates, and purchase activity slipped by 13.9% and is also at the lowest level since December 2000.

There was another big pullback in Libor rates overnight, which should help encourage inter-bank lending and help thaw out the credit market freeze. Supply remains an issue in credit markets and today the Treasury said it will resurrect the 3-year note and conduct more frequent auctions of 10-year notes and 30-year bonds to fund the government’s staggering borrowing needs.

The market was now buzzing over what impact President-elect Obama will have on difficult pressing issues about the economy, jobs erosion, the housing meltdown, the financial crisis and the wars in Iraq and Afghanistan. While it appears a daunting task, Obama will enter the job with a mandate for change from the people and a big majority in the House and Senate to further his plans. From a historical perspective, it’s interesting to note that the stock market has lost about 1% in the first month after electing a new Democrat changeover to the White House, but then the market has rallied 10% over a 12-month period after the election. From a strict company perspective, there is a broad sense that an Obama presidency would be positive for solar and wind companies and potentially negative for defense contractors and big oil companies.

Strategists with BMO Financial Group said in a press release that Obama’s . . .

Riverview Bancorp, Inc. (Nasdaq:RVSB), JDA Software Group Inc. (Nasdaq:JDAS) and Culp Inc. (Nasdaq:CFI) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Oceanfreight Inc. (Nasdaq:OCNF), optionsXpress Holdings Inc. (Nasdaq:OXPS), Adams Resources & Energy Inc. (Nasdaq:AE), Quest Energy Partners L P (Nasdaq:QELP), Aristotle Corp. (Nasdaq:ARTL) and Interval Leisure Group Inc. (Nasdaq:IILG).

Here are the biggest percentage gainers among small caps:

A Power Energy Generation Systems Ltd (Nasdaq:APWR), Canadian Solar Inc. (Nasdaq:CSIQ) and JDA Software Group Inc. (Nasdaq:JDAS) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Oceanfreight Inc. (Nasdaq:OCNF), Hiveld Steel Depository Receipt (Nasdaq:HSVLY), Cavium Networks Inc. (Nasdaq:CAVM), Solarfun Power Holdings Co Ltd (Nasdaq:SOLF), Allscripts Misys Healthcare Solutions Inc. (Nasdaq:MDRX) and TBS International Ltd (Nasdaq:TBSI).

Here are the most actively traded companies among small caps:

Shares of JDA Software Group, Inc. (Nasdaq: JDAS) fell due to a disappointing 2008 guidance and despite news after the close on Monday that the provider of supply and demand management software solutions saw a rise in its fourth-quarter and full-year results.

The Scottsdale, Ariz.-based company announced on Monday that total revenues for the three months ended Dec. 31, 2007, were $98.5 million, a rise of 11.2% compared with total revenues of $88.6 million during the final three months of 2006.

The software maker had earnings of $0.35 per share, above the $0.34 per share projected by analysts and a rise of 75% compared with a net income of $0.20 per share a year earlier.

“Our strong performance in fourth quarter 2007 provided the perfect finish to a record year for JDA,” said CEO Hamish Brewer in a statement.

The company reported also that it has signed 72 new software license contracts and has achieved its second best quarter for software license revenue in history. Additionally, global software sales jumped 27% in fourth quarter 2007 compared to the same three months in 2006.

For the entire year, JDA increased its total revenues 35% to $373.6 million, compared with $277.5 million in 2006. Profit more than doubled to $1.33 per share from $0.58 per share in 2006.

Looking forward, the company projected that 2008 net income will be in the range between $1.40 per share and $1.45 per share.

“Market demand for our comprehensive product line continues to intensify among existing and new customers across every industry,” JDA’s chief said in a statement.

However, the forecast disappointed analysts, who were expecting a profit in the higher end of the guidance range. The consensus of three analysts polled by Thomson Financial is for 2008 earnings of $1.45 per share.

The Russell 2000 (NYSE: IWM) futures are pointing up and the small-cap index could open higher on news of a profit rise at Wal-Mart.

The bulls are ready this morning following news that Wal-Mart Stores Inc. (NYSE: WMT) reported a 7.9% increase in third-quarter profit at its U.S. stores. The Bentonville, Ark.-based company, the world’s largest retailer, also reported that revenue rose 8.9%, outpacing Wall Street’s projections.

Wal-Mart also improved its fiscal 2008 earnings guidance.

Elsewhere, shares of Apple Inc. (Nasdaq: AAPL) are climbing on news the company is in talks with handset operator China Mobile to introduce its iPhone to the Chinese market. The iPhone was recently introduced in Europe but has yet to make its Asian debut.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Nektar Therapeutics (NKTR), up 19% on news it has resolved contractual issues with Pfizer Inc. (PFE).
• US BioEnergy Corp. (USBE), up 12% on news of a rise in third-quarter earnings.
• Tecumseh Products Company (TECUA), up 11%.

Biggest percentage losers:

• James River Coal Co. (JRCC), down 5%.
• JDA Software Group Inc. (JDAS) down 4% on news it has created an Alliance Connection program to expand demand for its product.
• Hansen Medical Inc. (HNSN) down 3%.

Waste Industries USA, Inc. (Nasdaq: WWIN), Columbus McKinnon Corp. (Nasdaq: CMCO) and EDAC Technologies Corp. (Nasdaq: EDAC) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

JDA Software Group, Inc. (Nasdaq: JDAS), a provider of supply and demand management software, said this morning that it has expanded its partnership with The Rainmaker Group, a provider of revenue management software and services to the gaming hospitality industry.

The new agreement extends The Rainmaker Group's right to market and sublicense JDA's hospitality revenue management software in the hospitality industry.

Shares of JDA Software (JDAS) were halted in pre-market trading.

April 16 (SmallCapInvestor.com) – Stocks rallied today on upbeat news from the financial sector and strong retail sales. Among small caps, Antigenics, Inc. (Nasdaq: AGEN) moved up following news its drug helps against brain tumors, while strong quarterly sales lifted shares of software solutions provider JDA Software Group, Inc. (Nasdaq: JDAS).

The Russell 2000 added 12.06 points, or 1.47 percent, to 831.44, a new record close.  The previous high of 829.44 was set on Feb. 22.  The Dow Jones Industrial Average rose 108.33 points, or 0.86 percent, to 12,760.46.

Shares of Progen Pharmaceuticals Limited (Nasdaq: PGLA) are down even though the Australian company announced earlier today it will aggressively fast-track the development of its liver cancer drug PI-88 into further trials after the success of a recent study.  Shares are down $0.14, or 1.80%, to $7.64.