Tag - Ngs

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. Today's small-cap gainers were BlueLinx Holdings (NYSE:BXC), Venoco, Inc. (NYSE:VQ) and Medco Health (NYSE:MHS).

Other Market Watch highlights included:

• Commodities (a big plus for the market on Tuesday) were struggling today. Crude oil prices were off 7% after soaring 10% Tuesday.  
• The best performers are homebuilders, health care services, managed health care and office supplies.  
• Forest products, tire and rubber stocks, health care facilities, coal, Internet retail and broadcast TV companies are the worst performers.  
• The jobs issue is now on the front burner ahead of Friday’s big employment report, which is expected to show a nasty decline.  
• Drug, technology and financial shares paced today’s decline, fueled by worries that a recession in the U.S., global slowdown would dampen corporate profitability and deepen jobs losses.  

Small Cap Gainers:

• BlueLinx Holdings up 20% after appointing George Judd CEO today. See (NYSE:BXC).
• Independent energy company Venoco, Inc. up 16% on higher-than-average volume. See (NYSE:VQ).  
• Medco Health shares up 13% after seeing 38% rise in Q3 profit. See (NYSE:MHS).  
• Natural Gas Services Group announces a 43% increase in Diluted EPS for Q3; shares climb over 11%. See (NYSE:NGS).  
• Genco Shipping cancels agreement to acquire six drybulk newbuildings; shares up over 8%. See (NYSE:GNK).  

Small Cap Losers:

• NeuStar reports Q3 results, downgraded to "buy" from "strong buy." Shares dive 20%. See (NYSE:NSR).
• Ashford Hospitality Trust down 20% after naming interim CFO. See (NYSE:AHT).  
• Reports say Advance America, Cash Advance could take $42M hit if forced to close Ohio centers. Shares careen 15%. See (NYSE:AEA).
• Fitch downgraded Colonial BancGroup's ratings last week; shares dive over 22% today. See (NYSE:CNB).  
• Simcere Pharmaceutical Group down 25% on heavier-than-average volume. See (NYSE:SCR)

Kendle International Inc. (Nasdaq:KNDL), Blount International Inc. (Nasdaq:BLT) and Eagle Bancorp Inc.  (Nasdaq:EGBN) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Ohio Valley Banc Corp. (Nasdaq:OVBC), Greatbatch Inc. (Nasdaq:GB), 012 Smile Communications Ltd. (Nasdaq:SMLC), Catalyst Health Solutions Inc. (Nasdaq:CHSI), Mesa Laboratories Inc. (Nasdaq:MLAB) and Natural Gas Services Group Inc. (Nasdaq:NGS).

Here are the biggest percentage gainers among small caps:

NGAS Resources Inc (Nasdaq:NGAS), BMB Munai Inc (Nasdaq:KAZ) and Cano Petroleum Inc (Nasdaq:CFW) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: RAM Energy Resources Inc (Nasdaq:RAME), Panhandle Oil and Gas Inc (Nasdaq:PHX), Stepan Co (Nasdaq:SCL), International Assets Holding Corp (Nasdaq:IAAC), United States Lime & Minerals Inc (Nasdaq:USLM) and Natural Gas Services Group Inc (Nasdaq:NGS).

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

Natural Gas Services Group, Inc. (AMEX:NGS)
Midland, Texas
http://www.ngsgi.com

52-week low / high: $13.55/ $29.72
Shares Outstanding: 12.09 million
Market Capitalization: $325 million

If they weren’t already aware, the award-winning film “There Will Be Blood” helped hammer home the point to Americans that people make money in the oil business — a lot of it. Demand for oil and gas is greater than supply and — with a rising population and increasing international modernization — the gap is increasing, making the business fundamentals hard to beat.

Texas-based small cap Natural Gas Services (AMEX:NGS) fabricates, makes, rents and sells natural gas compressors and related equipment. Its primary focus is renting natural gas compressors, which are mechanical devices used to increase gas pressure by reducing volume.

The firm usually contracts out compressors for periods between six months and two years. Most of the customers continue renting the compressors on a month-to-month basis after their contract runs out, according to the company.

The biggest factor that determines Natural Gas Services’ success is the worldwide supply and demand for natural gas. According to regulatory filings, the company expects its business activity to mostly track the levels seen in the natural gas industry overall. Changes in domestic natural gas production, consumption and prices affect the firm more than similar changes in crude oil.

The firm also believes the demand for compression services is driven by declining oil reservoir pressure. Oil producers are increasingly focusing on non-conventional natural gas production — coalbed methane, gas shales and tight gas — which usually requires more compression than normal reservoirs. If companies continue to go to the largest publicly traded provider of small- to medium-horsepower gas compressors, Natural Gas Services’ investors will continue to enjoy rising profits.

The company aims to meet rising demand by expanding its rental revenue. During the recently completed first quarter, rental revenue grew 30% to $9 million from $6.9 million a year earlier. It plans to grow in 2008 by adding 300 to 350 compressors to its overall fleet. The firm added 69 compressor units to its fleet during the first quarter. On March 31, the company had 1,422 compressors, up 23% from 1,157 units a year earlier.

“We were able to [add compressor units] in spite of moving into our new facility in the first quarter and lost time of over 1,500 hours due to flue and illness,” Taylor said during a conference call with investors on May 6.

In the recently ended first quarter, Natural Gas Services recorded a 13% boost in revenue to $18.9 million, from $16.7 million a year earlier. Wall Street analysts, on average, anticipated $20.9 million in revenue.

In a press release, Natural Gas Services said it believes market fundamentals for natural gas are favorable. For the three months ended March 31, the Midland, Tex.-based firm’s net income increased 31% to $3.5 million, or $0.29 per share, compared with $2.7 million, or $0.22 per share, a year ago. The consensus estimate on Wall Street was earning $0.28 per share.

Operating costs and expenses during the first quarter jumped to $13.5 million versus $12.5 million during the same period of 2007. Net cash provided by operating activities rose to $8 million from $7.9 million during the prior-year period. The company had $155.2 million in assets at the end of the first quarter, compared with $153.2 million a year earlier.

Note: Natural Gas Services Group, Inc. (AMEX:NGS) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Natural Gas Services displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

Richard Moroney, editor of Upside Stocks, applies quantitative analysis to the search for growth and value-oriented small-cap stocks, most recently choosing small caps EZCORP, Inc. (Nasdaq:EZPW) and Natural Gas Services Group, Inc. (AMEX:NGS) as “buys” through his proprietary Quadrix system.

According to the advisor, who is also well-known for the blue chip, large-cap-oriented Dow Theory Forecasts, now might be a particularly good time for investors to consider small-cap stocks. After completing a rigorous analysis of stock performance and valuations, he says, "As the price/earnings ratios of small stocks have contracted, those of the fastest growers have contracted the most."

He says that since last Sept. 30 (when the S&P SmallCap 600 was within 5% of its all-time high), the median P/E ratio for all stocks in the index has dropped to 16.8 from 19.4, a 13% decline.

"Among the one-fifth of S&P 600 stocks with the highest expected five-year profit growth, the median P/E has dropped to 22.7 from 29.9 — a 24% decline." His conclusion? "Investors' reluctance to pay up for growth stocks represents an opportunity, provided you're selective."

It is this "selectivity" that is the key to success, according to Moroney. "You should not limit your search to companies with just the very best expected growth rates, partly because such consensus forecasts are not very accurate."

Rather, the advisor says the current environment argues in favor of a focus on both growth and value. "With the overall outlook for corporate prospects deteriorating, you should consider redoubling your search for attractively valued growers," . . .

Gencor Industries, Inc. (Nasdaq:GENC), Natural Gas Services Group, Inc. (AMEX:NGS) and Brigham Exploration Co. (Nasdaq:BEXP) were among the new 52-week highs established during Monday's trading among companies with market capitalizations or values under $750 million.

Clayton Williams Energy, Inc. (Nasdaq:CWEI), UFP Technologies, Inc. (Nasdaq:UFPT) and United States Gasoline Fund (AMEX:UGA) were also among the 52-week small-cap highs.

Here are Monday's 52-week small-cap highs:

The Russell 2000 (NYSE:IWM) closed lower on news that Wachovia Corp. (NYSE:WB) suffered a first-quarter loss. The small-cap index fell 2.09 points, or 0.30%, to 686.07. The Dow Jones Industrial Average declined 23.36 points, or 0.19%, to 12,302.06.

On a year-to-date basis, the Russell 2000 has shed 10.44%, while the Dow is off 7.26% and the S&P 500 is down 9.54%.

The bears and the bulls tangled but the bears were eventually victorious as investors reacted to news before the opening that Wachovia Corp. (NYSE:WB) swung to a first-quarter loss and will sell common and preferred stock to raise capital.

The Charlotte, N.C.-based bank has been relatively less exposed to the subprime mortgage mess than the other major financial institutions, leading to speculation that more players will report losses.

Banks were among the worst hit industry groups today. Among those . . .

The Russell 2000 (NYSE:IWM) has surprisingly zoomed ahead. At 1:19 p.m. ET, the small-cap index had added 3.57 points, or 0.52%, to 691.73. The Dow Jones Industrial Average was up 19.22 points, or 0.16%, to 12,344.64.

Small-cap stocks abruptly moved into the green at around 12:30 p.m. ET, with no apparent reason explaining the sudden spike. The index was in negative territory for most of the morning.

The major bearish news came before the start of trading when Wachovia Corp. (NYSE:WB) reported that it swung to a first-quarter loss, adding that it will sell common and preferred stock to raise capital.

There was also bullish news, coming in the form of a report by the U.S. Census Bureau before the opening that retail sales unexpectedly rose 0.2% in March. However, investors were not impressed because the increase was largely due to a jump in sales at gasoline stations.

Jinpan International Ltd. (AMEX:JST), Adept Technology, Inc. (Nasdaq:ADEP) and Natural Gas Services Group, Inc. (AMEX:NGS) were among the new 52-week highs established during Friday's trading among companies with market capitalizations or values under $750 million. 

Tecumseh Products Co. (Nasdaq:TECUA), Hawaiian Holdings, Inc. (AMEX:HA) and K-Tron International, Inc. (Nasdaq:KTII) were also among the 52-week small-cap highs.

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

Is it better to invest in good management plying its trade in a fair business, or to invest in fair management plying its trade in a good business? Most settle for the latter, some the former, but it's really a false dilemma. There's no reason you can't have both.

Few businesses are as good as energy production these days. Surging world demand — evidenced by $100-a-barrel crude — is well documented. Still, it's a volatile business and battle-tested sagacity (good management, in other words) is a requisite for long-term survival. 

Few energy companies have management as good as Natural Gas Services Group, Inc. (AMEX: NGS), a manufacturer, fabricator, seller and leaser of natural gas compressors based in Midland, Texas. Natural Gas focuses on non-conventional natural gas production such as coalbed methane, gas shales and tight gas. Major customers include Dominion Resources, Inc. (NYSE: D), Energen Corporation (NYSE: EGN), XTO Energy Inc. (NYSE: XTO) and Devon Energy Corporation (NYSE: DVN). A testament to Natural Gas’ management is its stock performance against the major indices — while the S&P 500 and Dow Jones Industrial Average have suffered 5% and 6% losses, respectively, the small-cap’s share price has appreciated 12%.

Most of Natural Gas's compressors are leased, with rental contracts providing initial terms of nine to 24 months. As of Sept. 30, 2007, the company had 1,136 natural gas compressors rented to 92 third parties, compared with 909 natural gas compressors rented to 85 third parties a year earlier.

The oil and gas equipment rental business is cyclical. The most critical factor in assessing the industry is the worldwide supply and demand for natural gas and the corresponding changes in commodity prices. On that front, inventory levels in the United States have favored crude oil over natural gas for the past three years. But many experts expect the balance of power to shift as oil becomes increasingly expensive relative to natural gas. 

Fuwei Films Co., Ltd. (Nasdaq: FFHL) reported that some of its principal stockholders are being investigated by the Chinese Communist Party.

After Friday’s closing bell, drug developer Neurochem Inc. (Nasdaq: NRMX) warned that it’s still working to overcome hurdles in the analysis of data from the testing of its Alzheimer’s drug Alzhemed.

China Shenghuo Pharmaceutical Hldg, Inc. (AMEX: KUN) announced it has retained the investor relations services of CCG Elite.

These are the biggest percentage losers in Monday’s trading among companies with market capitalizations under $500 million: