Tag - Mako

Small-cap stocks tumbled to fresh move lows early Monday, slipping to the lowest point on intraday charts since August 2003, but mounted a nice recovery rally on a stronger-than-forecast new home sales release. The early decline was fueled by steep losses in global equity trading overnight, which underscored fear of a global growth slowdown. At 10:05 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.16, or 0.67%, at 474.28.

The new home sales report came in at an annual rate of 464,000, which was above the forecast of 455,000. Inventories were down as well, slashes to the lowest point since June 2004, and the steepest one-month percentage decline on record, which was embraced by the stock market. However, the sales were enticed by lower prices, as the median sales price dipped to $218,400, the lowest level since September 2004.

After a relatively slow week on the data front last week, today’s new home sales report kicks off a more active run of economic releases this week. In addition, Wednesday’s FOMC and Thursday’s GDP report will be highly anticipated.

There was a massive 61-handle range in S&P 500 futures overnight as the market rejected an initial rally Sunday evening in response to a bruising collapse in stock markets in Asia. Japan’s Nikkei lost some 6% and closed at the lowest point in 26 years. Meanwhile, Hong Kong was off 12.7%, generating the largest one-day drop in nine years. Elsewhere around Asia, losses in the 4% range were common.

Commodities were on the defensive again today, with crude oil prices down about $0.80 a barrel dollars after the stock market opening. Overnight, crude oil prices were down more than $2 a barrel to the lowest point in 17 months, but stabilized when the U.S. stock market’s initial decline was not as bad as feared. Commodities in general were taking a hit this morning, pulled down by a strong tone in the U.S. dollar, which rose to the highest point versus the euro since April 2006. Although crude oil prices were climbing back toward level ground, the firm dollar did spark . . .

Isramco Inc. (Nasdaq:ISRL), Silicon Graphics Inc. (Nasdaq:SGIC) and Targanta Therapeutics Corp. (Nasdaq:TARG) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: John B  San Filippo & Son (Nasdaq:JBSS), OmniVision Technologies Inc. (Nasdaq:OVTI), NuStar GP Holdings LLC. (Nasdaq:NSH), Nashua Corp. (Nasdaq:NSHA), MAKO Surgical Corp. (Nasdaq:MAKO) and NewBridge Bancorp (Nasdaq:NBBC).

Here are the biggest percentage gainers among small caps:

(NYSE:SB)
Priced on May 28
$190 million proceeds
$378.4 million post-money valuation

Safe Bulkers operates a fleet of 11 ships used to carry dry bulk, which is uniform cargo that can be stored in loose piles such as grain or iron ore. To get it from place to place, shippers use dry-bulk ships, and Safe Bulkers is one of the fleet operators they call. The company’s ships have an average age of 2.6 years, making it one of the youngest fleets in the industry. The company’s largest customer is agribusiness company Bunge Limited (NYSE:BG), which contributed 29.9% of 2007 revenues. Another agribusiness firm, Cargill International, represented 21.1% of revenues, and Daiichi Chuo Kisen Kaisha, a shipping company, was responsible for 18.2% of sales. That’s a total of 69.2%, a proverbial blessing and curse. Safe Bulkers has most of its fleet time accounted for, but the loss of one of those customers would be devastating.

Operating the ships uses a lot of capital, but the business makes money. In 2007, Safe Bulkers posted net income of $87.8 million on revenue of $161.1 million. Cash provided by operating activities was $278.5 million. The ships need ongoing maintenance, but they also have value; Safe Bulkers historical financial results often include gains from sales of ships.

The company is owned by Vorini Holdings, an investment firm controlled by the Hajioannou family of Greece. Vorini sold all of the stock in this offering, and will still control more than 80%. The company itself did not get any of the proceeds. Nevertheless, Safe Bulkers has plans to expand its fleet to 19 ships in the next two years. The filing range was $20 to $22, so the $19 price was a little . . .

The Russell 2000 (NYSE:IWM) jumped today on news of better-than-expected economic data and hopes that the credit crunch is ending. The small-cap index rose 22.67 points, or 3.30%, to 710.64. The Dow Jones Industrial Average climbed 391.47 points, or 3.19%, to 12,654.36.

On a year-to-date basis, the Russell 2000 is down 7.23%, while the Dow has shed 4.61% and the S&P 500 is off 6.69%.

Stocks opened in the green and the bulls completely dominated the session on news before the opening that UBS AG (NYSE:UBS) will issue up to $15 billion in new stock and receive help from other banks in order to deal with $19 billion in writedowns stemming from the subprime mortgage mess.

Separately, Lehman Brothers Holdings Inc. (NYSE:LEH) announced before the opening that it will raise a higher-than-expected $4 billion in preferred stock.

Investors took the actions as a sign that the credit crunch is easing.

Among the winners today was small-cap Team Inc. (Nasdaq:TISI), which provides maintenance and construction services for high-temperature piping systems. The Alvin, Texas-based company reported . . .

MCG Capital Corp. (Nasdaq: MCGC), MAKO Surgical Corp. (Nasdaq:MAKO) and Pharmaxis Ltd. (Nasdaq:PXSL) were among the new 52-week lows established during Tuesday's trading among companies with market capitalizations or values under $750 million.

CommVault Systems, Inc. (Nasdaq:CVLT), Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) and Marlin Business Services Corp. (Nasdaq:MRLN) were also among the 52-week small-cap lows.

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

MAKO Surgical Corp. (Nasdaq:MAKO), Trubion Pharmaceuticals, Inc. (Nasdaq:TRBN) and Orchard Enterprises, Inc. (Nasdaq:ORCD) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Community National Bank of Lakeway Area (Nasdaq:CNLA), TF Financial Corp. (Nasdaq:THRD) and MCG Capital Corp. (Nasdaq:MCGC) are also among the top small-cap percentage losers.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE:IWM) is posting impressive gains as the bulls continue to dominate trading. At 3:13 p.m. ET, the small-cap index was up 19.50 points, or 2.83%, to 707.47. The Dow Jones Industrial Average had added 373.80 points, or 3.05%, to 12,636.69.

Small-cap stocks have continued moving along an upward trajectory on news of better-than-expected economic data and hopes that the credit crunch is ending.

The bullish mood was set before the opening when Swiss banking giant UBS AG (NYSE:UBS) announced that it will issue up to $15 billion in new stock and receive help from other banks in order to deal with writedowns associated with the subprime mortgage debacle. Investors took that as a sign that the credit crunch is easing.

Separately, Lehman Brothers Holdings Inc. (NYSE:LEH) added to the cheery mood when it announced before the opening that it will raise a higher-than-expected $4 billion in preferred stock.

In economic news, the U.S. Census Bureau reported after the start of trading that construction spending fell 0.3% in February, a smaller decline than the one expected by economists.

Bucking the trend are shares of small-cap MAKO Surgical Corp. (Nasdaq:MAKO). The robotic orthopedic surgery company reported after the close on Monday that . . .

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.