Tag - Laco

Small-cap stocks opened lower, but quickly trimmed losses as enthusiasm fueled by another round of global rate cuts helped soothe the sting of yet another sobering batch of economic reports.  Today’s small-cap gainers are inVentiv Health (Nasdaq:VTIV), Global Crossing (Nasdaq:GLBC) and Colonial Bankshares (Nasdaq:COBK).

Other Market Watch highlights today included:

• The latest batch of monthly same-store sales reports are coming out could influence the retail sector in general throughout the day.
• The sobering weekly claims report that was released today shows that Americans aren’t just losing jobs, they are struggling to find new ones too.  
• At 9:51 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.74, or 3.83%, at 510.81.  
• The Bank of England stunned the market with a very aggressive rate cut of 150 basis points, pushing benchmark rates there to the lowest point in 53 years.
• The most numbing stat from this morning’s data was that the number of continuing claims rose 122,000 last week to 3.84 million, the highest level in more than 25 years. 

Small Cap Gainers:

• inVentiv Health Q3 profit declines; reaffirms FY08 revenue guidance. Shares are soaring 43%. See (Nasdaq:VTIV).  
• Shares of Global Crossing up over 18% as the company maintains outlook, sees Q3 sales rise 12%. See (Nasdaq:GLBC).  
• Colonial Bankshares up 18% on higher-than-average volume. See (Nasdaq:COBK).
• H&E Equipment Services Inc. jumped 14% on solid earnings news. See (Nasdaq:HEES).  
• Small-cap retailer Hot Topic reported same-stores sales rose 8.3% and raised guidance. Shares were up 8.6% this morning. See (Nasdaq:HOTT).

Small Cap Losers:

• Lakes Entertainment Inc. slumped 29%, plunging a day after earnings and also as a casino referendum in Ohio was defeated. See (Nasdaq:LACO).  
• Entertainment software company THQ posts big 2Q loss, plans 250 layoffs. Shares down 25% in pre-market. See (Nasdaq:THQI).  
• Shares of Citi Trends down 9% in pre-market after the company announces Q3 sales. See (Nasdaq:CTRN).  
• Abercrombie & Fitch's Oct. comparable store sales decline 20%; shares trade over 7% lower in pre-market. See (NYSE:ANF).  

Small caps took a dive today, closing down 5.97% and snapping a string of six consecutive higher sessions in the process amid gloomy economic worries. Today’s small-cap gainers are Radian Group (NYSE:RDN), Venoco, Inc. (NYSE:VQ) and BlueLinx Holdings (NYSE:BXC).

Other Market Watch highlights today included:

• The Russell is now down 33% for the 2008, while the Dow is off 31% and the S&P 500 down 35%.
• In a research letter this morning, analysts at Goldman Sachs cautioned that downside risks in the economy could lead an even larger slide in GDP figures.
• A weekly inventory report showed growing stocks of energy products and soft demand, which helped fuel today’s decline.
• Even though the dollar gave back overnight gains, commodity markets struggled today, which is a sign that demand worries were front and center.
• Forest products, coal, steel, metals and mining stocks were among the worst performing broad market sectors today.
• In a research letter this morning, analysts at Goldman Sachs cautioned that downside risks in the economy could lead an even larger slide in GDP figures.

Small Cap Gainers:

• Radian Group posts Q3 profit on strong revenue; shares rose 31%. See (NYSE:RDN).
• Independent energy company Venoco, Inc. closed up 20% on higher-than-average volume. See (NYSE:VQ).
• BlueLinx Holdings closed up 20% after appointing George Judd CEO today. See (NYSE:BXC). 
• Acquisitions boost health care company Greatbatch's Q3 profit 53%. Shares closed up 15%. See (NYSE:GB).

Small Cap Losers:

• Adept Technology Inc. tumbled 33%, gapping lower and sinking on heavy volume as the vision-guided robotics firm took a hit on earnings news. See (Nasdaq:ADEP).
• Lakes Entertainment Inc. slumped 29%, plunging a day after earnings and also as a casino referendum in Ohio was defeated. See (Nasdaq:LACO).
• Ashford Hospitality Trust closed down 20% after naming interim CFO. See (NYSE:AHT). 
• Fitch downgraded Colonial BancGroup's ratings last week; shares dove over 22% today. See (NYSE:CNB). 

Small-cap stocks took a dive Wednesday as the market closed the door on a long and historic political campaign and refocused back on a gloomy economic picture. The Russell 2000 (NYSE:IWM) closed down 31.31, or 5.74%, at 514.64, snapping a string of six consecutive higher sessions in the process. The Russell is now down 33% for the 2008, while the Dow is off 31% and the S&P 500 down 35%.

Small-cap stocks were able to grind out modest gains Monday and Tuesday despite sloppy economic reports on manufacturing, car sales and factory orders, but were unable to sidestep awful data again today on the jobs front and on the sprawling services sector. The marquee economic release today was probably the ISM Non-Manufacturing Survey, but it also shared top billing with the ADP Employment release ahead of Friday’s big Labor Department report on payrolls. The ISM report tumbled to 44.4, which marked the lowest reading for the service sector in the 10 years that the report has been issued. Meanwhile, the ADP data showed a larger-than-expected decline in jobs, which sent shivers up investor spines ahead of Friday’s release. And while the focus now shifts to Friday’s big jobs report, there will still be a hurdle to cross Thursday morning when the weekly unemployment claims come out.

In a research letter this morning, analysts at Goldman Sachs cautioned that downside risks in the economy could lead an even larger slide in GDP figures. “Economic reports continue to imply that the U.S. economy is in decline, with real GDP perhaps contracting by more than the 2% annual rate that we are currently estimating for fourth-quarter real GDP. In just the last day, we’ve seen a sharp drop in auto sales, another significant decline in the ISM manufacturing index, and further evidence of tightening in bank lending standards. Although energy prices are also falling rapidly, this is mainly a reaction to the sharp weakening in economic activity, both here and abroad, and therefore apt to cushion the decline rather than reverse it.”

Commodities were a big part of the advance Tuesday in stocks, but reversed course today. Crude oil prices tumbled 7% today in a violent turnabout from Tuesday’s 10% rally. A weekly inventory report showed growing stocks of energy products and soft demand, which helped fuel today’s decline. Even though the dollar gave back overnight gains, commodity markets struggled today, which is a sign that . . .

Small-cap stocks extended morning losses into the midday time frame, as another batch of dour economic numbers quickly refocused attention from the U.S. elections back onto the recession. At 12:30 p.m. ET, the Russell 2000 (NYSE:IWM) was down 16.27, or 2.98%, at 529.68.

Drug, technology and financial shares paced today’s decline, fueled by worries that a recession in the U.S. and a slowdown around the globe would dampen corporate profitability and deepen jobs losses. The jobs issue is now on the front burner ahead of Friday’s big employment report, which is expected to show a nasty decline of 180,000 non-farm payrolls and an uptick on the unemployment rate to 6.3%.

Earlier today, the ADP Employment Survey came in at minus 157,000, which was worse than the forecast for a decline of 100,000 – and which didn’t include the Boeing strike numbers. The ADP report hasn’t had a very strong correlation with the Labor Department’s report due Friday morning, but the ADP figures did hint that the number could be even worse than feared.

Also on the data front, the ISM Non-Manufacturing Survey came in at 44.4, which was the lowest figure for services activity in the 10-year history of the report and way below the 50.0 line which represents contraction.

Looking at broad market sector activity, forest products, tire and rubber stocks, health care facilities, coal, internet retail and broadcast TV companies were the worst performers. The best performers were homebuilders, health care services, managed health care and office supplies. Even though the S&P homebuilder sector . . .

The Russell 2000 (NYSE: IWM) futures are pointing down and the small-cap index will open in negative territory on news of a loss at General Motors.

Automaker General Motors Corp. (NYSE: GM) announced this morning that its third-quarter net loss was a stunning $39 billion, or $68.85 per share, compared with a loss of $147 million, or $0.26 per share a year earlier. The Detroit-based company explained that its huge loss was due to a one-time charge against deferred tax assets. GM has now lost all the deferred tax credits it accrued over the previous three years.

In economic news, the U.S. Labor Department reported that third-quarter productivity increased more than expected. Preliminary numbers show a rise of 4.9%, while economists were expecting an increase of 2.5%. That’s the fastest pace of growth in the last four years.

Productivity increased a downwardly revised 2.2% in the second quarter.

Interestingly, unit labor costs—a key measure of inflation—declined 0.2% in the second quarter. That also defied economists, who were forecasting a rise of 0.8%.

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:

• PeopleSupport Inc. (PSPT), up 15% on news of a larger third-quarter profit.
• DRD Gold Ltd. (DROOY), up 14%.
• CRM Holdings Ltd. (CRMH), up 10% on news of a rise in third-quarter profit.

Biggest percentage losers:

• Nastech Pharmaceutical Company Inc. (NSTK), down 28% on news it has reacquired teriparatide nasal spray for treatment of osteoporosis from its collaboration partner, Procter & Gamble Pharmaceuticals Inc. (PG).
• Sierra Wireless Inc. (SWIR) down 10% on news of a product launch in Japan.
• Lakes Entertainment Inc. (LACO) down 8% on news of a third-quarter net loss.

Gaming is a high growth business. According to information provided by Casino City Press, North American gaming revenues grew 9% annually between 2002 and 2005, from $46.7 billion to approximately $60 billion.

These include revenues from commercial casinos, Native American casinos and card rooms. In 2005, there were an estimated 49,000 table games and almost two million gaming machines installed worldwide, of which an estimated 26,000 table games and 840,000 gaming machines were in North America. Gaming activities are legal in 49 U.S. states and 10 Canadian provinces.

Two companies poised to benefit from increased interest in gaming are Progressive Gaming International Corp. (Nasdaq: PGIC) and Lakes Entertainment (Nasdaq: LACO).