Tag - Pnx

The late-session snapback rally on Tuesday brought stocks back from the depths of Monday's losses, but many observers still say that we're not out of the woods yet.

What's stalking investors in the dark woods is a bear market. Small-cap stocks on Monday were down 25 percent from the Russell 2000's most recent high of 869 on May 2nd, but Tuesday's buying spree pushed the Russell 2000 back to 'just' a 20 percent decline - the threshold for a bear market.

Still, the latest pronouncement from Federal Reserve policymakers brought the buyers out of the woods and off the sidelines, given the availability of many bargain prices for stocks.

Stocks generally continued their upward trajectory and extended the rally today. The Dow closed up 33.63 points today to finish at 9,320.19; the Nasdaq finished up 2.70 points at 2,011.31; and the S&P 500 held over 1,000 to finished 1,005.61, up 2.98 points.

 

The Russell 2000 index finished up 4.38 point at 570.16.
 

Leading small-cap price gainers include Xerium Technologies (NYSE:XRM), up 33%; Georgia Gulf Corporation (NYSE:GGC) up 45%; Central Pacific Financial (NYSE:CPF) up 32%; and YRC Worldwide (Nasdaq:YRCW) up 30%.

 

Declining small-caps include WPT Enterprises (Nasdaq:WPTE) down 26%; The Phoenix Company (NYSE:PNX) down 19%; and Mellanox Technologies (Nasdaq:MLNX) down 17%.

 

*****Oil prices are slightly lower this morning. That should mean stocks will trade lower today as well. And while many are saying the fundamentals of this economic recovery do not support current prices for stocks or oil, I wouldn't get too excited about an imminent trade-worthy decline.

 

More likely, we will see any dip get bought by the bulls. And I doubt any dip will last for more than two days…

 

*****Sometimes, the financial markets can be very simpleminded--even downright dumb. And I believe now is one of those times. The federal government has committed to pouring as much cash into the economy as is necessary to keep prices from falling too much. And that may be all we need to know.

 

After all, banks can make money when they have the ability to borrow at 0.5% interest. They can make more money in fees when the government is sponsoring mortgage loan modifications. And when the government forced banks to raise more capital by selling stock, Goldman Sachs (NYSE:GS) may have made as much as $1 billion in profit from fees associated with secondary offerings.

 

Car companies and banks can make money from the Cash for Clunkers programs. Auto sales rose 13% in June, helped by this program. Heck, Ford (NYSE:F) posted its first rise in sales since 2007!

 

*****Some estimate that 40% of the world's wealth was lost in the wake of Lehman's collapse and the financial crisis. The only way to get that money back is to earn it. But companies aren't really earning money the old-fashioned way -- government policies are focused on allowing companies to do just that.

 

Sure, it's a form of trickle down economics. And while the long-term success may be questionable as there are always unintended consequences, make no mistake about the effect on the short-term. Assets are being reflated. Home values, stock prices, commodities - all can be expected to move higher.

 

*****Thanks to everyone who has sent in submissions for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt contest. In case you don't know, my first book is coming out on September 14, 2009. As part of the marketing plan for my book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks, I'm 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. 

 

Submissions have already been posted to the Small Cap Investor Facebook page and we're holding this contest open for just a little longer to get your idea. Post your submission on the Small Cap Investor page on Facebook

Small Cap Investor page on Facebook  send it to tshirt@smallcapinvestor.com. We're keeping this open until Sunday, August 9th.

 

Everyone who submits a T-shirt slogan will get a 30-day, 100% complimentary trial to my SmallCapInvestor PRO advisory service. The winner gets a one-year subscription to ALL of my advisory and trading services ($2,680 value), plus a signed copy of the book and three t-shirts. Voting on the slogan will begin shortly after the 9th.

 

*****The Managed America video conference is coming up next Monday, August 10 at 6:00 P.M. We'll cover the game plan for making profits in an America with sustained high unemployment, weak growth, weak banks, higher taxes, and excess government regulation. You don't want to miss this. It's free to attend and you can register HERE.

 

Ian Wyatt

Editor

Daily Profit

 

P.S. Tomorrow is NewsletterAdvisors.com Wednesday where we interview one of the country's top investment experts. We're fortunate to have Carla Pasternak of High-Yield Investing and High-Yield International, two of the leading publications for dividend and income investments. Don't miss tomorrow's edition of Daily Profit with our in-depth interview with Carla.

Small-cap stocks pushed modestly higher on the opening, and were still holding in positive territory after a dreadful manufacturing report slashed away gains in large-cap index products. Today’s small-cap gainers are Ultrapetrol Limited (Nasdaq:ULTR), Seneca Foods Corp. (Nasdaq:SENEA) and Orion Marine Group Inc. (NYSE:OMGI).

Other Market Watch highlights today included:

• Now that ISM is out of the way, focus will return to debate about the U.S. elections. Since 1900, the stock market has averaged a gain of nearly 10% in the 12 months following a Democrat transition into the White House.  
• The ISM Manufacturing Survey came in at 38.9%, which was below the forecast of 42% and marked the lowest manufacturing activity index in 26 years.  
• Small-cap stocks pushed modestly higher on the opening, and were still holding in positive territory after a dreadful manufacturing report slashed away gains in large-cap index products.
• The ISM figure is expected to come in at 42%, well below the 50% line that indicates contraction.  
• Heavy week for economic data risk: things kick off at 10:00 a.m. ET today with the ISM Manufacturing Survey and finish with a flourish Friday morning with the big employment report.  

Small Cap Gainers:

• Ultrapetrol Limited is up almost 50% in pre-market ahead of its Q3 earnings release next week. See (Nasdaq:ULTR).
• Seneca Foods Corp. is up 25%, gapping higher on light volume. See (Nasdaq:SENEA).  
• Orion Marine Group Inc. jumped 24.9%. See (Nasdaq:OMGI).  
• Safe Bulkers Inc. is up 12.8%, climbing above the 20-day moving average for the first time since early September. See (NYSE:SB).  
• SourceForge gaining 8.5% in pre-market, guides in line, sets stock buyback. See (Nasdaq:LNUX).


Small Cap Losers:

• AtriCure Inc. is tumbling 43% on news that the firm is under investigation by the Department of Justice for potential false claims on the company’s surgical devices. See (Nasdaq:ATRC).  
• Ness Technologies profit rises 121%; shares down 5% in pre-market. See (Nasdaq:NSTC).  
• Phoenix Companies down 12% as it slips to a loss in Q3. See (NYSE:PNX).  
• GMAC's bonds tumble after plan to exchange debt, shares dive over 10%. See (NYSE:GMA).  

Calgon Carbon Corp. (Nasdaq:CCC), Silicon Graphics Inc. (Nasdaq:SGIC) and Oneida Financial Corp. (Nasdaq:ONFC) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Rubicon Technology Inc. (Nasdaq:RBCN), Union Bankshares Inc. (Nasdaq:UNB), Medicines Co. (Nasdaq:MDCO), Phoenix Co Inc. (Nasdaq:PNX), Medicines Co. (Nasdaq:MDCO) and HealthSouth Corp. (Nasdaq:HLS).

Here are the biggest percentage losers among small caps:

Phoenix Co Inc. (Nasdaq:PNX), Greenlight Capital Re Ltd. (Nasdaq:GLRE) and Delta Apparel Inc. (Nasdaq:DLA) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Coleman Cable Inc. (Nasdaq:CCIX), Noble International Ltd. (Nasdaq:NOBL), Collectors Universe Inc. (Nasdaq:CLCT), Lexington REIT (Nasdaq:LXP), Telvent GIT SA (Nasdaq:TLVT) and Crosstex Energy Inc. (Nasdaq:XTXI).

Here are the biggest percentage losers among small caps: