Tag - Ndn

There is no doubt that consumers hurt by the recession want to stretch their dollars. And when it comes to investing in small-cap companies, being a frugal shopper is even more important.

That’s because it’s possible to pay too much for even the best growth stock. In order to make the most of your investment, you need to buy at bargain basement prices.

Finding surplus value is what shopping is all about - regardless of whether you're shopping for shoes, stocks, or really anything imaginable.

The Russell 2000 (NYSE:IWM) has extended its gains following news of bullish earnings from Wal-Mart Stores, Inc. (NYSE:WMT). At 1:43 p.m. ET, the small-cap index had added 10.71 points, or 1.53%, to 709.09. The Dow Jones Industrial Average was up 109.60 points, or 0.87%, to 12,636.86.

Small caps initially moved into positive territory shortly before 10 a.m. ET, and have been gaining as investors react to news before the opening that Wal-Mart Stores, Inc. (NYSE:WMT) has raised its earnings estimates for the first quarter of fiscal 2009 to between $0.74 per share and $0.76 per share, up from a previous guidance calling for net income between $0.70 per share and $0.74 per share.

“Inventory in Wal-Mart Stores U.S. has been well-managed and has resulted in lower markdowns, expense leverage and reduced shrink,” CFO Tom Schoewe said in a statement.

A number of small-cap retailers have also come out with bullish news. After the close on Wednesday, 99 Cents Only Stores (AMEX:NDN) reported that its same-store sales . . .

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are rising on news of a narrower-than-expected loss at General Motors Corp. (NYSE: GM) and financial relief.

At 10:16 a.m. ET, the small-cap index had advanced 8.54 points, or 1.22%, to 708.29. The Dow Jones Industrial Average (INDU) had added 192.33 points, or 1.57%, to 12,432.34.

Stocks small and large climbed out of the gate following news that GM swung to a fourth-quarter net loss that was not as bad as the one predicted by analysts. The Detroit-based carmaker also announced that it will offer buyouts or early retirements to all the 74,000 U.S. hourly workers represented by the United Auto Workers union in order to cut down on costs.

Helping the bulls gain traction is news that billionaire investor Warren Buffett has offered to have his company, Berkshire Hathaway, assume responsibility for $800 billion of municipal bonds guaranteed by bond insurers MBIA Inc. (NYSE: MBI), Ambac Financial Group Inc. (NYSE: ABK) and Financial Guaranty Insurance Co.

There are fears that the three companies could be downgraded due to writedowns stemming from the subprime mess. A downgrade would make it difficult to find clients and would lower the value of many of the bonds that it insures, causing more write-offs at banks and other financial institutions.

One of the three bond insurers has turned down the offer while the other two are still thinking it over, but investors are nevertheless in a buying mood.

Posting a solid gain is Evercore Partners Inc. (NYSE: EVR), a small-cap investment banking company that reported fourth-quarter earnings above Wall Street’s expectations.

On the flip side, Cynosure Inc. (Nasdaq: CYNO) reported fourth-quarter net income that disappointed analysts despite the fact that it was 300% better than a year ago. The maker of light-based aesthetic and medical treatment systems also said that revenues jumped 49%.

General retailer 99 Cents Only Stores (NYSE: NDN) barely beat analysts’ third-quarter earnings projections.