Tag - Mr

Stocks closed down today in all of the major U.S. indices. The Dow closed down 25.92 points to end at 9,070.80; the Nasdaq ended at 1,967.76, down 7.75 points; and the S&P 500 moved downward 4.48 points to close at 975.44.

The Russell 2000 ended the day at 549.54, down 2.56 points.

Small-cap gainers were lead by American Axle & Manufacturing (NYSE:AXL) up 50% to close at $2.02. Other small-cap share price gainers Elron Electronic Industries (Nasdaq:ELRN) up 45%; McClatchy Company (NYSE:MNI) up 44%; and Conseco (NYSE:CNO) up 36%.

Small-cap decliners were lead by Frontier Financial Corp. (Nasdaq:FTBK) down 21% on announcing Q2 losses of $1.06 per share versus gains of $0.04 a year ago. Joining FTBK in leading decliners today were THQ (Nasdaq:THQI) down 19%; Alvarion (Nasdaq:ALVR) down 17%; and Ariad Pharmaceuticals (Nasdaq:ARIA) down 16%.

*****With the exception of the Nasdaq, the major indices finished yesterday with slight losses. And it looks like an even money bet whether they'll finish in the red today. We've seen an unlikely move over the last two weeks. The S&P 500 has made gains in 9 of the last 11 sessions and moved 11.3% higher. Volume hasn't been especially strong during this move, but it is summer. Volume is always a bit lighter in the summer.

It seems more and more strategist-types are looking for a pullback or correction for stocks. Yesterday, CNBC's Jim Cramer said he was expecting some red. Of course, Cramer makes so many calls it's hard to keep them all straight.

For the record, Cramer says he likes healthcare stocks, technology and financials, believe it or not. He says financials are so universally hated that they will be stronger than average in the event of a pullback. That's the "no one left to sell" theory.

I'm not so sure. The banks have been given time to earn their way back to health. And it could work. But a lot depends on the housing market. Many banks still carry toxic assets. And their reluctance to sell into Geithner's PPIP suggests they remain hopeful these assets will regain value. If they don't, it could be problematic. And then there's the commercial real estate situation we've been discussing.

******Did you know I'm about to publish my first book? The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks will hit the shelves on September 14.

In The Small Cap Investor, I share the proven techniques for uncovering the small cap companies poise for a huge run higher. My biggest success was apparel company True Religion (Nasdaq:TRLG). I recommended that stock to my readers at $1.13 a share. We sold it in 2008 for 2,216% gains. My techniques have also led my SmallCapInvestor PRO advisory service to a 93% win rate this year.

Now, I need your help. As part of the marketing plan for my book, we are holding a T-shirt contest. I want you to be the one who comes with the slogan for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt.

Obviously, "Secrets to Winning Big with Small Cap Stocks" is taken. But slogan's like "I made a 142% on Gulfport Energy and all I got was this lousy T-shirt" or "Ian Wyatt: The Best Small Investor" are open.

We'll be holding the voting on the Small Cap Investor page on Facebook starting today and running through August 9th. You can leave your submissions there, or send them to tshirt@smallcapinvestor.com.

The winner will get their very own shirt plus a full-year subscription to SmallCapInvestor PRO. This should be a lot of fun. I hope you'll participate.

******China is in the news again. Overnight, the Shanghai Composite fell 5%, the biggest drop in eight months. Investors are nervous on reports that the Chinese government may be discussing clamping down on lending due to the potential for imbalances to occur.

Specifically, Bloomberg is reporting that the Chinese government is concerned that asset bubbles may be forming in the stock market and that inflation may be building.

Chinese stocks are reportedly trading at 35 times reported earnings. And that is expensive. But interestingly, the Chinese stocks in the SmallCapInvestor PRO portfolio are trading with Price-to-Earnings ratios between 8 and 11. That's much cheaper than most Chinese stocks, apparently, and one of the reasons we recommended them.

Of course, valuations won't keep our stocks from declining if the Chinese stock market takes a hit. But Chinese stocks are recovering today after last night's sell-off, so that's a good sign.

If you're interested in finding out more about the Chinese stocks in the SmallCapInvestor PRO portfolio click here to get a copy of the report.

*****Finally, Top Stock Insights reader took 35% gains yesterday on Chinese medical device maker called Mindray (NYSE:MR). I love the science fiction name, but couldn't resist taking the gains.

Best Regards,

Ian Wyatt
Editor
SCI Daily

"Bull markets are born in the pits of despair; from current low stock prices and low PE valuations, the gains over the coming five to 10 years could be truly spectacular," says Tom Bishop, editor of BI Research.

The small-cap growth expert looks at two stocks that are based in China and set to benefit from China's stimulus program: energy efficiency play, SmartHeat (Nasdaq:HEAT) and medical diagnostics firm, Mindray (NYSE:MR).

"We have a number of stocks in our portfolio that are doing well, fundamentally, even if their stock prices aren’t. Therefore I am focusing on those as most attractive for purchase, if you have the brass and the cash.

"The profitability of SmartHeat, a manufacturer of Plate Heat Exchangers (PHEs) in China, is only expected to improve despite the global recession.  Indeed, SmartHeat so far has held up pretty well as the market tanks to new lows.

"Installing more efficient heating and heat transfer products can save money by saving energy and by burning less energy per unit of heat helps to reduce pollution and thus is right up there on the list of China’s $586 billion stimulus package.

"In fact, SmartHeat has already won a $1.2 million contract directly linked to this plan and anticipates additional orders.

"China’s stimulus package includes $58 billion for funding of rural and urban infrastructure and energy efficiency projects. Previously the company announced important deals with Siemens and Fluor that should also help fuel growth in 2009.

"SmartHeart not only recently got its NASDAQ listing but has also been accepted for NASDAQ Global Market listing. SmartHeat plans to host nearly a dozen analysts in China this month, and perhaps raise some equity along the way to get a wider share base, needed for higher daily volume, wider analyst exposure. The shares remain a Buy.

"Mindray is a medical equipment company located in China with a focus on patient monitoring, diagnostic laboratory instruments and ultrasound imaging. Its niche is quality equipment at an affordable price, which is becoming even . . .

Small-cap stocks remained lower into mid-session, pulled down by losses in commodity, financial and technology stocks amid ongoing worries about corporate profits in one of the deepest economic recessions since the Great Depression.  Some of today’s small-cap gainers are A-Power (Nasdaq:APWR), Aladdin Knowledge Systems (Nasdaq:ALDN) and Mindray (NYSE:MR).

Other Market Watch highlights today included:

• Corn futures crashed 7%, touching limit down losses and the Gold and Silver Index slumped more than 5%, reflecting losses for mining and metals shares.  
• Commodities were hit especially hard today, with crude oil prices tumbling 7% on worries about the global demand picture.  
• Overseas markets were lower coming into today’s session, which likely weighed on the market as well. 
• The dollar was firm against the euro this morning, which could also weigh on other commodity markets and stocks with close ties to physical markets. 

Small Cap Gainers:

• GE joins with A-Power on wind turbine gearbox equipment; shares of A-Power rise 21%. See (Nasdaq:APWR)
• Aladdin Knowledge Systems agrees to buyout at 20% premium; shares rise 14%. See (Nasdaq:ALDN).  
• Mindray announces preliminary 2008 operating results; shares pop 14%. See (NYSE:MR).
• The Cooper Companies is up 8% today after declaring a half-year cash dividend last week. See (NYSE:COO).

Small Cap Losers:

• Small-cap gold stock Detour Gold Corp. is down 21%. See (Nasdaq:DRGDF). 
• Small-cap coal company Patriot Coal Corp. fell 17.3% as commodities slumped across the board today. See (NYSE:PCX).
• Small-cap eatery Morton’s Restaurant Group Inc. is down 7.8% as restaurant stocks get clobbered. See (NYSE:MRT).  
• Homebuilder shares were taking a hit today, with small-cap builders Centex Corp. down 7.7%; KB Home off 6.2% and Meritage Homes Corp. down 10.5%. See (NYSE:CTX), (NYSE:KBH) and (NYSE:MTH).  

Small-cap stocks opened higher but quickly slipped into negative territory, as a bounce in banking and commodity stocks and a rise in overseas equities was countered by weak profit reports for a raft of small-cap firms. The market is clearly oversold following dramatic losses this week, which could power a pre-weekend short-covering bounce, but fear about the slumping global economy remains a big part of negative investor psychology. Today’s small-cap gainers are Life Time Fitness Inc.  (NYSE:LTM), USG Corporation. (NYSE:USG) and Mindray Medical (NYSE:MR).

Other Market Watch highlights today included:

• Researchers at Goldman Sachs today said that the upcoming November employment report will be the worst yet for 2008.   Nov 21, 2008 10:10am
•  It should be noted that any improvement today still comes against a backdrop of one of the worst stock market declines in history.   Nov 21, 2008 10:09am
• The U.S. dollar was down about 1% against the euro, which was also seen as a mild bullish element for commodities in general.   Nov 21, 2008 10:08am
• This week has seen massive flight to safe haven ports, out of stocks, which drove yields on Treasury products to historically low levels.

Small Cap Gainers:

• Life Time Fitness Inc. rose 24% on a bounce from 52-week lows forged Thursday. See (NYSE:LTM).  
• USG Corporation announces agreement to sell $400M of contingent convertible senior notes; shares climb 23%. See (NYSE:USG).
• Shares of Shares of Mindray Medical are climbing 18% this morning on very light volume. See (NYSE:MR).  
• Quicksilver Resources up over 17% after board approves $600 million capital budget for 2009. See (NYSE:KWK).  

Small Cap Losers:

• Foot Locker Inc. collapsed 42% as the athletic shoe retailer missed earnings projections. See (NYSE:FL).
• Flow International announces departure of CFO Douglas Fletcher; shares careen 28%. (Nasdaq:FLOW).  
• Celanese Corp. plummets 25% after Citigroup downgrades the small cap to "hold." See (NYSE:CE).  
• Joy Global Inc. down 5% in pre-market after shares tumbled 17.56% on Thursday. See (Nasdaq:JOYG).