Tag - Seac

The major indices were essentially flat for the day, which is to say, they performed better than yesterday. The Dow Industrials finished with a 30 point loss, the Nasdaq posted an 1 point loss, and the S&P 500 finished with a 3 point loss. The small cap benchmark, the Russell 2000 finished with a 1 point decline.

The top small cap gainer was Vista Gold (AMEX:VGZ), up 32%. MDS Inc. (NYSE:MDZ) which posted a 29% gain after it announced one of its divisions has been sold. Acquisition news also took biotech Sepracor (Nasdaq:SEPR) up 26%. Rounding out the top gainers was K V Pharma Class A Shares (KV-A) up 32%, and The Medicines Company (Nasdaq:MDCO), up 28%.

In spite of the recent weakness in the stock market, the sudden surge in Merger & Acquisition activity should be considered bullish.

On the losing side of the small cap market today was Imperial Industries (Nasdaq:IPII), which lost 27%. Imperial makes building supplies, which should explain the weakness.

Shipping company DHT Maritime (NYSE:DHT) lost 21% after posting weak earnings. Tech company SeaChange International (Nasdaq:SEAC) lost 16% on poor earnings.

In light of the recent worry about China's real estate market, it should be no surprise to see China Housing & Land (Nasdaq:CHLN) on the loser list with a 15% loss.

Finally, in typical "buy the rumor, sell the news" action, biotech Sinovac (AMEX:SVA) fell 17% after it signed a supply agreement for its swine flu vaccine with a South Korean company. Terms of the deal weren't disclosed, which no doubt disappointed investors.

Now for other market news…

*****That was quite a sell-off yesterday. We haven't seen a drop that big since the early days of July. Volume was pretty heavy, too. And no sector was spared.

Briefing.com reports that 95% of the S&P 500 was in the red by the close. Financials seemed to have borne the brunt of the decline. The Financial Select Sector SPDR (XLF) was down 5.3%. But if you were holding an inverse ETF like the UltraShort Financial ProShares (SKF) like TradeMaster Daily Stock Alert members were the day wasn't so bad.

The most troublesome aspect of yesterday's sell-off is that it came amidst some pretty good news. The ISM Manufacturing Survey came in much better than expected and pending home sales for July was also much better than expected. Plus, the Wall Street Journal is reporting that the IMF has raised global growth estimates for 2010 again to just below3%.

Of course, oil prices responded to the manufacturing data by posting an early 2% gain. Unfortunately, that turned into a 2.7% loss as the day went on.

*****Cash for Clunker Stocks dominated yesterday's action. Bank of America lost 6%, Citigroup (NYSE:C) was down 9% and AIG (NYSE:AIG) lost 21%. Even more startling, Citi accounted for 20% of the volume on the NYSE.

Such concentrated selling in the financials sector shouldn't be that surprising. Even the bulls have been scratching their heads at the gains AIG and Citi have been making. It remains to be seen if investors can let some of the air out of these stocks without taking the whole market down.

*****Oil is rebounding a bit today. Inventories fell 3.2 million barrels last week.

British Petroleum (NYSE:BP) announced a major find in the Gulf of Mexico. Some are saying it could be more than 3 billion barrels. Along with the massive find by Brazil from a couple weeks ago, we might start to wonder if new supply might affect prices.

Until tomorrow,

Ian Wyatt
Editor
Small Cap Investor Daily

P.S. My book The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks is coming out on September 14 - visit www.smallcapbook.com to learn more. You can also follow me on http://twitter.com/ianwyatt 

Ian Wyatt is the Chief Investment Strategist of SmallCapInvestor.com and author of The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks. You can learn more about his book and receive small-cap stock picks at www.smallcapbook.com.

 

SeaChange International Inc. (Nasdaq:SEAC), CPI Corp. (Nasdaq:CPY) and Sinovac Biotech Ltd. (Nasdaq:SVA) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Novavax Inc. (Nasdaq:NVAX), Trubion Pharmaceuticals Inc. (Nasdaq:TRBN), Zion Oil and Gas Inc. (Nasdaq:ZN), Applied Signal Technology Inc. (Nasdaq:APSG), Hardinge Brothers Inc. (Nasdaq:HDNG) and Blyth Inc. (Nasdaq:BTH).

Other Market Watch highlights today included:

• Tire and rubber, coal, homebuilding, metal and mining and even hotel stocks were attracting buyers so far today.   Nov 26, 2008 12:58pm
• Office electronics were up, and so were construction-themed companies.   Nov 26, 2008 12:58pm
• Looking at sector activity, automobile manufacturers were on a roll today, with General Motors Corp. up 31%.   Nov 26, 2008 12:57pm
• The market seemed willing to cast aside a batch of mostly awful economic data from this morning as no surprise.

Small Cap Gainers:

• ATP Oil & Gas Corporation jumped 30% as the offshore oil and gas firm tried to mount a lasting rally after setting long-term lows last week. See (Nasdaq:ATPG).
• Orient Express Hotels Ltd. rallied 27% as the luxury hotelier and travel company appeared to attract bargain hunters in the hotel group. See (NYSE:OEH).  
• American Axle & Manufacturing up 24% after declaring a Q4 dividend earlier this week. See (NYSE:AXL).  
• SeaChange International Inc. is up 23% as the video-on-demand software firm benefited from an earnings-related boost. See (Nasdaq:SEAC).

Small Cap Losers:

• Safe Bulkers drops another 15% today on light volume. See (NYSE:SB).  
• Arbor Realty Trust down 15% on lower-than-average volume, hovering above a 52-week low of $1.77. See (NYSE:ABR). 
• Signet Jewelers reports disappointing Q3 09 results; shares dive 11%. See (NYSE:SIG).  
• J. Crew Group shares fall 7% on weak outlook. See (NYSE:JCG).  

Small-cap stocks took flight into mid-session trading, outperforming large caps as investors appeared more confident in looking for “riskier” fare following three days of rallies – at least on the stock market side of things. At 12:40 p.m. ET, the Russell 2000 (NYSE:IWM) was up 12.38, or 2.79%, at 455.56.

Demand for U.S. assets appeared quite brisk today, with stocks higher, Treasury bonds and notes higher and the dollar climbing against 1.6% against the euro, and reversing earlier losses against the yen to gain 0.2% on that currency. Even with a firm greenback, commodities were doing just fine, with the Commodity Research Bureau Index of 19 physical markets up nearly 1% and crude oil prices climbing 3.5% after holding key chart support near the $50-dollar-a-barrel range. As a result, energy shares were doing well today, with the Energy Select Sector SPDR Fund up more than 1%.

The market seemed willing to cast aside a batch of mostly awful economic data from this morning as no surprise. There is a general perception that when the market turns it will take place long before the actual economy bottoms out, and that psychology continues to attract bargain hunters who aren’t too shell shocked from the historic September collapse. Investors also appeared to get a lift from news that President-elect Obama named former Fed chief Paul Volcker as the chief for his economic advisory board, saying they will implement a growth plan from “day one.”

Looking at sector activity, automobile manufacturers were on a roll today, with General Motors Corp. (NYSE:GM) up 31% and Ford Motor Co. (NYSE:F) up 21%. Office electronics were up, and so were construction-themed companies. Tire and rubber, coal, homebuilding, metal and mining and even hotel stocks were attracting buyers so far today.

Looking at individual small caps ATP Oil & Gas Corporation (Nasdaq:ATPG) jumped 30% as the offshore oil and gas firm was in a familiar small-cap theme: trying to mount a lasting rally after setting long-term lows last week. Orient Express Hotels Ltd. (NYSE:OEH) rallied 27% as the luxury hotelier and travel company appeared to attract bargain hunters in the hotel group. SeaChange International Inc. (Nasdaq:SEAC) was up 23% as the video-on-demand software firm benefited from an . . .

ATP Oil & Gas Corporation (Nasdaq:ATPG), Tesco Corp. (Nasdaq:TESO) and Orient Express Hotels Ltd. (Nasdaq:OEH) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Meritage Homes Corp. (Nasdaq:MTH), SeaChange International Inc. (Nasdaq:SEAC), iPCS Inc. (Nasdaq:IPCS), Hill International Inc. (Nasdaq:HIL), Key Technology Inc. (Nasdaq:KTEC) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF).

Zale Corp. (Nasdaq:ZLC), SeaChange International Inc. (Nasdaq:SEAC) and Herley Industries Inc. (Nasdaq:HRLY) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: FiberNet Telecom Group Inc. (Nasdaq:FTGX), DXP Enterprises Inc. (Nasdaq:DXPE), CryoLife Inc. (Nasdaq:CRY), Zep Inc. (Nasdaq:ZEP), Starrett LS Co. (Nasdaq:SCX) and Almost Family Inc. (Nasdaq:AFAM).

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

Television and cable systems are undergoing a revolution, as the old concept of sending out a signal to whoever’s watching at any given moment falls by the wayside.

Consumers can set a DVR to catch the shows they want to watch later, or they can use on-demand technology that utilizes systems such as those from SeaChange International (Nasdaq:SEAC).

Any parent who has had to deal with a screaming kid because of a missed “SpongeBob SquarePants” episode can appreciate on-demand video now provided by many cable or satellite companies, usually in an upgraded service package.

The Internet, with its growing cache of always-available content, is a threat to broadcasting, and to survive the shows must be available when consumers want them. While decades-old DVR technology is a cheap alternative to pricey cable add-ons, on-demand content eliminates one variable that trips up viewers: forgetting to set the dang timer.

SeaChange International, which got its start in 1993 in digital advertising, develops and sells the fail-safe hardware, software services and equipment needed to generate revenue and retain the eyeballs of viewers. After churning up two turbulent years of losses, SeaChange appears to have sailed into the calmer waters of profitability.

Of six analysts surveyed by Thomson Reuters, four have SeaChange at “strong buy,” one has it a “buy” and the other has it at “hold.” The median long-range price target is $10.75, or roughly 30% of upside potential from where SeaChange has recently traded.

SeaChange hit a 52-week high of $8.45 on Monday, more than 60% better than the 52-week low of $4.95 on Nov. 8. In the past year, investors seem hesitant to keep the stock above $8 — they waffled after it touched $8.25 in December, although it held around $9 in early June 2007. Shares were last above . . .

Rex Energy Corp (Nasdaq:REXX), Sequenom Inc (Nasdaq:SQNM) and Superior Well Services Inc (Nasdaq:SWSI) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Cytori Therapeutics Inc (Nasdaq:CYTX), Third Wave Technologies Inc (Nasdaq:TWTI) and SeaChange International Inc (Nasdaq:SEAC) are also among the new 52-week highs.

Overture Acquisition Corp (Nasdaq:NLX), Newpark Resources Inc (Nasdaq:NR) and Sports Properties Acquisition Corp (Nasdaq:HMR) were additionally included among the results.

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

Small-cap stocks opened lower, pulled down when a fresh batch of economic reports failed to generate any upside surprises. The decline was short-lived, though, as prices pushed slightly into the green within 15 minutes of the opening. A small tug of war between those disappointed by the morning reports and those upbeat by an overnight drop in crude oil and rising retailer shares seemed to be underway. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.67, or 0.09%, at 739.12.

Economic data on weekly claims and GDP came out before the opening today and while neither report was strikingly bad, they also didn’t carry any bullish news to sustain a mild overnight rise in stocks. The weekly claims report attracted the most attention because the number came in above the forecast at 372,000 versus 370,000 claims, and last week’s figure was revised upward by 3,000 to 368,000. The GDP report hit the median forecast for a rise to 0.9%, but didn’t carry the same kind of power it did last month when a mild rise in GDP was cause for celebration for stocks.

“The bottom line is that economic growth remained very weak at the beginning of the year. These data are ancient history, as Q2 is nearly two-thirds over. Data released so far for April and May suggest that Q2 growth will also be very soft and perhaps even negative. There is still a definite risk for an outright contraction in Q2,” Steven Wood, chief economist with Insight Economics, said in an email.

As for the weekly claims report, Wood said that the four-week moving average is settling in near 370,000, up about 45,000 than the average last year. He said that continuing claims, which are inversely related to job creation, jumped this week and have been rising steadily for almost two years, which suggests that hiring has weakened. The claims data take on a little extra punch this week because next Friday serves up the monthly employment report, and today’s data indicates another . . .

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will open in positive territory.

The bulls are ready for action following news that Wal-Mart Stores, Inc. (NYSE: WMT) posted a 4% rise in fiscal fourth-quarter net income. The Bentonville, Ark.-based company had a profit of $4.1 billion, or $1.02 per share, meeting analysts’ projections and up from $3.94 billion, or $0.95 per share, a year earlier.

The Russell 2000 edged lower on Friday and continues to struggle to sustain buying enthusiasm on the recent rally off the January lows. The Index closed Friday at 701.52, down 3.80 for the day, or 0.54%.

The market will likely focus on market fundamentals and political news early today since we won’t see any economic data until mid-week. Look for resistance at 704, 712 and 721. Meanwhile, support comes in at 693, 688 and 680.

The Russell 2000 (NYSE: IWM) futures are slightly above their close level on Friday on news of corporate deal-making.

Search engine Yahoo! Inc. (Nasdaq: YHOO) will reject a $45 billion bid from Microsoft Corp. (MSFT), according to news reports over the weekend. The Redmond, Wash.-based software giant will in turn take its offer directly to shareholders.

More mergers and acquisitions news is coming from networking solutions provider Nortel Networks Corp. and telecommunications heavyweight Motorola Inc. (NYSE: MOT), which are in talks to merge their wireless infrastructure divisions, according to The Wall Street Journal.

There are no economic report releases to navigate on Monday, and outside volatility looks calm until we get to Wednesday morning’s Retail Sales report. Look for support Monday at 688 and 680, while resistance is at 712 and 721.

The Russell 2000 (NYSE: IWM) managed just a modest win today despite a strong start on speculation of an imminent interest rate cut. The small-cap index added 1.71 points, or 0.22%, to 767.77. The Dow Jones Industrial Average (INDU) moved up 59.99 points, or 0.45%, to 13,371.72.

On a year-to-date basis, the Russell 2000 has lost 2.50%, while the Dow has advanced 7.19% and the S&P 500 is up 4.56%.

The day’s economic news was decidedly negative, with reports showing that Americans’ income and consumption growth slowed while spending on construction declined more than expected.

The U.S. Commerce Department reported that consumption increased 0.2% in October, below the projected 0.3%. Consumption increased 0.3% in September. That could be a sign that American consumers have decided to curtail spending due to higher energy prices, tighter credit and the ongoing slump in the housing sector.

October personal income added 0.2%, below economists’ expectations and half the 0.4% rise it booked in September.

The housing sector also contributed bleak news. The U.S. Census Bureau announced that construction spending for October fell a greater-than-expected 0.8%. Predictably, residential construction led the way down, dropping 2% from the level in September and 15.8% from the level a year ago.

On a year-to-date basis, construction spending has amounted to $977 billion, 2.8% below the $1,005.3 billion recorded during the first ten months of 2006.

Nevertheless, stocks opened in positive territory as investors speculated that U.S. Federal Reserve will cut its target interest rate when it meets on Dec. 11.

Shares of SeaChange International, Inc. (Nasdaq: SEAC) are rising on news after the close on Thursday that the provider of digital video systems and software swung to a profit in the third quarter of fiscal 2008.

Net income for the three months ended Oct. 31 was $3.3 million, or $0.11 per share, compared with a net loss of $1.2 million, or $0.04 per share, a year earlier. Analyst estimates were not available.

The Acton, Mass.-based company reported that revenues increased 16% to a record $49 million, from $42.3 million during the third quarter of fiscal 2007.

“We’re extremely delighted with our financial performance this quarter which includes record revenues, a bottom-line profit and cash generation,” said president and CEO Bill Styslinger in a statement.

Styslinger elaborated that he is happy that SeaChange’s third-quarter revenue was driven by continued demand for its video on demand (VOD) systems, particularly from North American cable customers.

The company, which had about 700 employees at the end of the previous fiscal year, sells its technology to Comcast Corp. (Nasdaq: CMCSA), Time Warner Inc. (NYSE: TWX), Cablevision Systems Corp. (Nasdaq: CVC), as well as to clients in Japan, the United Kingdom, South Korea and India.

The Russell 2000 (NYSE: IWM) is posting strong gains as investors speculate that the U.S. Federal Reserve will lower interest rates in December.

At 10:50 a.m. ET, the small-cap index had added 8.95 points, or 1.17%, to 775.01. The Dow Jones Industrial Average (INDU) was up 110.55 points, or 0.83%, to 13,422.28.

The bulls are dominating Wall Street as investors speculate that the U.S. Federal Reserve will cut its target interest rate when it meets on Dec. 11. Fueling the speculation is a speech by Chairman Ben Bernanke after the close on Thursday, during which he told the Charlotte Chamber of Commerce that economic uncertainty has increased due to turbulence in financial markets and the Fed must remain alert.

On Oct. 31, the Fed lowered the federal funds rate, the rate at which commercial banks make overnight loans to each other, to 4.50% from 4.75%.

In economic news, the U.S. Commerce Department reported that consumption increased 0.2% in October. Economists were projecting a rise of 0.3%, the same as September’s increase.

With consumption making up about 70% of gross domestic product, a slowdown would spell trouble for the economy. Many observers have been predicting that American consumers will pull back in the face of higher energy prices, tighter credit and the seemingly never ending slump in the housing sector.

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index is likely to open in positive territory.

The bulls are ready to go on speculation that the U.S. Federal Reserve will cut its target interest rate when it meets in December. The speculation is due to a speech by chairman Ben Bernanke after the close on Thursday, during which he said that uncertainty has increased and the Fed must remain alert.

In economic news, the U.S. Commerce Department reported that consumption increased 0.2% in October, below the rate projected by economists. Consumption added 0.3% in September.

The lackluster performance can be blamed on a slowdown in the labor market, higher energy prices and the seemingly never ending slump in the housing sector.

Investors will also be looking at data on October construction spending, which will be released by the U.S. Census Bureau at 10 a.m. ET. Economists are expecting to see a decline.

SeaChange International (Nasdaq: SEAC), Solarfun Power Holdings Co., Ltd. (Nasdaq: SOLF) and China Finance Online Co. (Nasdaq: JRJC) are among the most actively traded companies in Friday pre-market trading among those with market capitalizations under $750 million:

A Brean Murray, Carret & Co. analyst said Neurochem Inc.’s (Nasdaq: NRMX)’s drug candidate Alzhemed will likely fail in a late-stage clinical trial and Kiacta won't receive FDA approval.

Hooker Furniture Corp. (Nasdaq: HOFT) reported double-digit declines in sales and earnings in its first quarter. The Martinsville, Virginia-based furniture manufacturer reported net income of $4.3 million or $0.33 per share, for the first quarter ended April 29, down from $5.8 million or $0.49 per share in the year-ago period.

James River Coal Co. (Nasdaq: JRCC) said it may periodically sell up to $150 million in debt securities, common and preferred stock, warrants and units. The Richmond, Va.-based coal producer said it intends to use the money for working capital and general corporate purposes.

G-III Apparel Group, Ltd. (Nasdaq: GIII) said it expects to report a wider second quarter loss. The company, which makes and licenses apparel under brand names including Calvin Klein, Kenneth Cole and Sean Jean, expects a loss of between $0.19 and $0.24 per share on revenue of about $75 million. In the year-ago quarter, the company recorded a $0.14 loss on $69.1 million in sales. Analysts polled by Thomson Financial expected a second-quarter loss of $0.12 per share on revenue of $82.3 million.

Acton, Mass.-based SeaChange International (Nasdaq: SEAC) reported a first quarter loss of $0.12 per share, which was $0.02 worse than Wall Street estimates.

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

Neurochem Inc. (Nasdaq: NRMX) says a “landmark” New England Journal of Medicine study shows the benefits of the Canadian company’s eprodisate treatment for secondary amyloidosis.

PNC Financial Services Group Inc. (NYSE: PNC) said it agreed to acquire Yardville National Bancorp (Nasdaq: YANB) for $403 million. For each of their shares, Yardville shareholders will receive about $0.29 of a PNC share and $14 in cash.

Acton, Mass.-based SeaChange International (Nasdaq: SEAC) reported a first quarter loss of $0.12 per share, which was $0.02 worse than Wall Street estimates.

Books-A-Million, Inc. (Nasdaq: BAMM) announced that the Board of Director’s has declared a special one-time dividend of $3 per share. The dividend will be paid on July 5. About $50.4 million will be paid on the Birmingham, Ala.-based company’s 16.8 million outstanding shares.

The following are the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

The following small-cap companies were making news in after-hours trading Wednesday:

New York-based G-III Apparel Group, Ltd. (Nasdaq: GIII) said for the first quarter of fiscal 2008 ended April 30 that net sales were $35.1 million, compared with $14.4 million in the same quarter the previous year and above analysts' estimates at $28.17 million. The apparel manufacturer and distributor lost $0.42 per share, better than the loss of $0.72 in the same period last year and better than analysts' estimates for a loss of $0.51. The company also said its bookings were strong for the upcoming fall and holiday season, with the exception of a decline in outerwear private label programs. Shares were down $0.90, or about 4%, to $19.80 in after-hours trading. The 52-week range is $8.21 to $26.74.

Sangamo BioSciences, Inc. (Nasdaq: SGMO) said it expects to start a Phase 1 clinical trial on its HIV ZFP Therapeutic. The Richmond-Calif.-based bioscience company said it would hold the trial after it presented data on its efforts to develop a zinc finger DNA-binding protein (ZFP) Therapeutic(TM) for HIV/AIDS. Its program showed that ZFN-modified T-cells are protected from HIV infection. Sangamo was up 6% at $7.75 in after-hours trading.

SeaChange International, Inc. (Nasdaq: SEAC) said it had a 17% increase in revenues to $38.8 million for the first quarter of 2008 ended April 30, compared with the prior year period, but those sales were below analysts' forecasts for $41.42 million. Net loss for the quarter was $0.12 per share, compared with a net loss of $0.15 per share a year ago and worse than the $0.10-per-share loss expected by analysts. Shares of SeaChange were down 10.5% at $8.15 in after-hours trading. The Acton, Mass.-based software company also guided investors to expect less from it than previously indicated. SeaChange said it was now unlikely that first-half fiscal 2008 revenue would exceed revenue for the second half of fiscal 2007.