Tag - Mssr

After swooning out of the gate, the Russell 2000 has pulled off its lows of the session, but still remains besieged in the red mid-session. A spike in unemployment claims, disconcerting July retail sales, an uptick in oil prices and gloomy results from insurance juggernaut American Insurance Group (NYSE:AIG) pushed small caps lower, while a better-than-expected pending home sales report served to taper losses.

At 12:41 p.m. ET, the Russell 2000 (NYSE:IWM) had slipped 4.67, or 0.64% to 721.23, while the Dow has given back 94.93, or 0.81%, to 11,561.14.

The Labor Department reported this morning that the weekly claims report spiked to 455,000, marking the largest weekly figure since March 2002. Adding insult to injury, the number was substantially above the forecast of 420,000 and adds to the sobering picture of a weaker labor market. The continuing claims number rose to a fresh cycle high at 3.311 million, the highest level since December 2003.

“Continuing claims, which are inversely related to job creation, jumped this week to their highest level since December 2003,” Steven Wood, chief economist with Insight Economics, said in an email. “This is an indication that hiring has weakened.”

In other economic news, the National Association of Realtors reported this morning that pending home sales rose 5.3% to 89 from May’s reduced figure of 84.5. Economists were expecting the index to slide to 84.3. The rosier-than-anticipated report helped to pull stocks off their lows of the session. However, despite a gain during June, the number is still 12% lower than last year.

McCormick & Schmickʼs Seafood Restaurants Inc. (NASDAQ:MSSR) is up 16% this morning after reporting after the close Wednesday better-than-expected second-quarter earnings. For the three months ended June 28, the Portland-based small cap said it earned $2.4 million, or $0.16 per share, down from $4.5 million, or $0.31, a year earlier. Analysts were expecting earnings of $0.14 per share. Guest traffic was down 5.4% for the quarter.

Noble International (Nasdaq:NOBL), Susser Holdings Corp. (Nasdaq:SUSS) and TXCO Resources Inc. (Nasdaq:TXCO) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.         

Also included among the results: McCormick & Schmick's Seafood Restaurants Inc. (Nasdaq:MSSR), Medifast Inc. (Nasdaq:MED), ENGlobal Corp. (Nasdaq:ENG), Republic Airways Holdings Inc. (Nasdaq:RJET), Mediacom Communications Corp. (Nasdaq:MCCC) and 1-800-Flowers.com Inc. (Nasdaq:FLWS). 

Here are the biggest percentage gainers among small caps:     

Protherics PLC (Nasdaq:PTIL), Anchor Bancorp of Wisconsin Inc (Nasdaq:ABCW) and Firstbank Corp (Nasdaq:FBMI) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sandy Springs Bancorp Inc (Nasdaq:SASR), LIN TV Corp (Nasdaq:TVL), Edenor SA (Nasdaq:EDN), Cooperative Bankshares Inc (Nasdaq:COOP), Midwest Banc Holdings Inc (Nasdaq:MBHI) and McCormick & Schmick's Seafood Restaurants Inc (Nasdaq:MSSR).

Here are the new 52-week lows among small caps:

McCormick & Schmick's Seafood Restaurants, Inc. (Nasdaq: MSSR) is getting a bit of a pop today after Morgan Joseph upgraded the sea food restaurant to “buy” from “hold” on discounted valuation and the potential for a private equity buyout.

Higher costs and a disappointing fourth quarter earnings announcement in late December, coupled with dubious sentiment surrounding consumer discretionary stocks, have been some of the reasons behind the recent sell off in the stock. Shares of the small cap have seen a 50% decline since September and a 25% decline since November; but Morgan Joseph analyst Dean Haskell says he thinks a buying opportunity exists.

“We believe this is an environmental hiccup for McCormick & Schmick's, not a fundamental one,” Haskell wrote in a research note today. “We continue to believe that the company's seafood niche strategy and 2x daily printed menu position it well for long-term growth, particularly as aging baby boomers seek healthier lifestyles in seafood options over red meats.”

The stock currently trades at 4.9 times the analyst’s 2008 earnings before interest and taxes, depreciation and amortization estimate of $37.8 million, giving the stock a price target of $16 per share. The small cap has a P/E of 12.9 compared with the industry’s P/E of 18.87.

Aside from a cheap valuation currently, Haskell says the company has the potential to be taken private even in a tough financing environment where buyout shops are scraping deals. According to the analyst, the company has historically taken itself private twice in the past decade.

The Russell 2000 (NYSE: IWM) is posting solid gains as investors react to upbeat news about personal spending and a major corporation. At 2:58 p.m. ET, the small-cap index had climbed 15.72 points, or 2.05%, to 783.26. The Dow Jones Industrial Average (INDU) was up 213.14 points, or 1.61%, to 13,458.78.

The bulls are looking strong this afternoon as stocks are buoyed by news of stronger-than-expected personal spending and calming developments at a major financial player.

Personal spending climbed 1.1% in November, the U.S. Commerce Department reported before the start of trading. The increase, the biggest in over three years, calmed fears that Americans will spend less this holiday season due to falling home prices and higher energy costs.

Economists were expecting spending to increase 0.7% after a rise of 0.2% in October.

The same government report showed that personal income in November rose 0.4%, above October’s 0.2% increase. However, economists were forecasting a 0.5% climb.

The numbers tell us that consumers responded favorably to holiday discounts offered by retailers.

In corporate news, there’s speculation that Merrill Lynch (NYSE: MER) could sell a stake of itself for a $5 billion cash injection from Singapore’s state investment company.

That’s not a surprising move, since many other financial services giants have also sold stakes in order to secure much needed capital to deal with the consequences of the meltdown in the subprime mortgage sector.

Elsewhere, the price of oil has increased $2.29 to $93.35.

Shares of McCormick & Schmick’s Seafood Restaurants, Inc. (Nasdaq: MSSR) are getting hammered this morning after the upscale seafood restaurant lowered its guidance for its fourth quarter and fiscal year 2007.

For the fourth quarter ending Dec. 31, the Portland, Ore.-based company said it now anticipates revenues of between $98 million and $99 million and a comparable sales decrease between 1.5% and 1.8%. This is down from previous guidance of $100 million to $102 million in revenues and an increase in comparable sales of 1% to 2%. The consensus of 10 analysts polled by Thomson Financial was for revenues of $100.8 million.

Oxford Industries, Inc. (NYSE: OXM), Edge Petroleum Corp. (Nasdaq: EPEX) and Children's Place Retail Stores, Inc. (Nasdaq: PLCE) were among the new 52-week lows established Tuesday among companies with market capitalizations or values under $750 million.

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

McCormick & Schmick's Seafood Restaurant (Nasdaq: MSSR), Green Plains Renewable Energy Inc. (Nasdaq: GPRE) and Golden Cycle Gold Corp. (Nasdaq: GCGC) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

McCormick & Schmick's Seafood Restaurant (Nasdaq: MSSR) said before the opening that it expects third-quarter earnings below expectations. The Portland, Ore.-based company now expects earnings of $0.16 per share on revenue of $88 million. The restaurant operator previously expected earnings in the range of $0.21 to $0.23 on revenue of between $90 million and $91 million for the three months ending Sept. 30.

McCormick blamed the lower guidance on weak September traffic.

"Our updated third quarter outlook reflects weakness in September traffic, which we attribute primarily to less demand from our aspirational guests, as a result of economic pressures currently affecting this segment of the U.S. consumer base,” CEO Doug Schmick said in a statement. “While we are certainly disappointed with the revision in our guidance, we are confident that we can weather the current softness in our business."

In morning trading, MSSR shares are plummeting 20.47%, or $5.13, at $19.93. Over the last 52 weeks, shares of the small cap have ranged between $19.25 and $30.98.

Superconductor Technologies, Inc. (Nasdaq: SCON), China Precision Steel, Inc. (Nasdaq: CPSL) and Kreisler Manufacturing (Nasdaq: KRSL) are the most actively traded companies in Tuesday pre-market trading among those with market capitalizations under $500 million: