Tag - Smsi

Limelight Networks Inc. (Nasdaq:LLNW), Fuqi International Inc. (Nasdaq:FUQI) and BioDelivery Sciences International Inc. (Nasdaq:BDSI) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: SIGA Technologies Inc. (Nasdaq:SIGA), Gander Mountain Co. (Nasdaq:GMTN), Virtus Investment Partners Inc. (Nasdaq:VRTS), Smith Micro Software Inc. (Nasdaq:SMSI), ShoreTel Inc. (Nasdaq:SHOR) and Kirklands Inc. (Nasdaq:KIRK).

Virtus Investment Partners Inc. (Nasdaq:VRTS), Bridge Bancorp Inc. (Nasdaq:BDGE) and AsiaInfo Holdings Inc. (Nasdaq:ASIA) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Clearwater Paper Corp. (Nasdaq:CLW), Pervasive Software Inc. (Nasdaq:PVSW), Smith Micro Software Inc. (Nasdaq:SMSI), STEC Inc. (Nasdaq:STEC), Seabridge Gold Inc. (Nasdaq:SA) and ESB Financial Corp. (Nasdaq:ESBF).

Small-cap stocks were in rally mode Tuesday morning, taking flight in response to signs of a thaw in the credit market freeze, oversold conditions that brought out bargain hunters and a sizable jump in overseas equities markets. From an economic data perspective, today’s consumer confidence report and Case-Shiller Home Price Index releases were somber at best.  Today’s small-cap gainers are Apria Healthcare Group Inc. (NYSE:AHG), Syms Corp. (Nasdaq:SYMS) and Smith Micro Software (Nasdaq:SMSI).

Other Market Watch highlights today included:

• Crude oil prices were up about $1 a barrel this morning, helped along by a mild dip in the U.S. dollar against the euro.  
• European energy stocks also were in rally mode today, which should provide a lift to U.S. energy stocks as well.  
• After a global rout in equities Monday, investors came in today with relief that stocks in Asia and Europe were in rally mode instead of deepening the slide. 
• The dip in Libor rates also corresponds with the FOMC meeting, which began today and which should result in a rate cut Wednesday afternoon. 
• Small-cap stocks were in rally mode Tuesday morning, currently up 2% and taking flight in response to signs of a thaw in the credit market freeze.

Small Cap Gainers:

• Apria Healthcare Group Inc. is rallying 45%. Its stock will cease to trade publicly when a merger with The Blackstone Group is completed; shares will be converted into $21 cash. See (NYSE:AHG).  
• Syms Corp. is up 18%, trying to reverse Monday’s decline to fresh closing lows. See (Nasdaq:SYMS).
• Dell Selects Smith Micro Software to Deliver Universal Connection Management Software, up 5%. See (Nasdaq:SMSI).  
• Schnitzer Steel cautioned markets in early F09 have significantly weakened and it is uncertain when improvements may be seen. (Nasdaq:SCHN).  

Small Cap Losers:

• Ceradyne reports Q3 net income tumbles 40%, guides 2008 below the Street. See (Nasdaq:CRDN).  
• The nation’s largest rent-to-own operator Rent-A-Center reduces Q4 outlook on severity of financial crisis, down 33%. See (Nasdaq:RCII).  
• Martha Stewart misses analysts estimate by penny, issues Q4 and 08 revenue below Street. See (NYSE:MSO).
• Buffalo Wild Wings’ EPS fall short of Street view, expects sales and EPS growth in 25% range for full year, just shy of the Street.  (Nasdaq:BWLD).  

Multi-Fineline Electronix Inc (Nasdaq:MFLX), Advisory Board Co (Nasdaq:ABCO) and Pacer International Inc (Nasdaq:PACR) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: National Financial Partners Corp (Nasdaq:NFP), ACCO Brands Corp (Nasdaq:ABD), 21st Century Holding Co (Nasdaq:TCHC), Smith Micro Software Inc (Nasdaq:SMSI), Cambrex Corp (Nasdaq:CBM) and Kulicke & Soffa (Nasdaq:KLIC).

Here are the biggest percentage losers among small caps:

Diamond Management & Technology Consultants Inc. (Nasdaq:DTPI), Chindex International Inc. (Nasdaq:CHDX) and Avid Technology Inc. (Nasdaq:AVID) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Molecular Insight Pharmaceuticals Inc. (Nasdaq:MIPI), Summit Financial Group Inc. (Nasdaq:SMMF), Reis Inc. (Nasdaq:REIS), Smith Micro Software Inc. (Nasdaq:SMSI) and Bryn Mawr Bank Corp. (Nasdaq:BMTC).

Here are the biggest percentage gainers among small caps:

Shares of Smith Micro Software, Inc. (Nasdaq:SMSI) are rising on news before the opening that it has been granted a patent by the U.S. Patent and Trademark Office. The Aliso Viejo-based company has developed a technology that enables management of computer systems from handheld mobile devices.

At 2:36 p.m. ET, the stock had climbed $0.80, or 12%, to $7.28.

The Russell 2000 (NYSE: IWM) fell hard today as the stain from the subprime mortgage meltdown spread. The small-cap index let go 20.96 points, or 3.07%, to 662.78. The Dow Jones Industrial Average (INDU) declined 214.60 points, or 1.75%, to 12,040.39.

On a year-to-date basis, the Russell 2000 is down 13.48%, while the Dow has retreated 9.23% and the S&P 500 has shed 11.17%.

The bears completely dominated trading today on news before the start of trading that investment company Carlyle Capital Corp. Ltd. had failed to meet a margin call and received a notice of default from one of the banks that helps finance its portfolio of mortgage securities.

Similarly, Santa Fe, N.M.-based residential mortgage lender Thornburg Mortgage Inc. (NYSE: TMA) announced after the close on Wednesday that it had failed to meet a margin call of about $28 million.

A “margin call” is when banks call in their loans to investors, who are in turn forced to sell off assets to raise cash, leading to a reduction in the price of those assets and more margin calls and losses.

Today’s news raised fears that the credit squeeze and the consequences of the housing downturn will continue plaguing the financial system.

Smith Micro Software, Inc. (Nasdaq: SMSI) shares are jumping after the developer of cell phone software said it expects 2008 revenue of between $95 million and $105 million. Wall Street analysts, on average, project fiscal year revenue of $102 million.

After Wednesday’s closing, Smith Micro posted fourth-quarter net income of $0.7 million, or $0.02 per share, from $3.6 million, or $0.14 per share, a year earlier. Analysts expected $0.20 per share.

Quarterly revenue rose 16% to $20 million, from $17.2 million during the same period of 2006. Wall Street analysts, on average, projected revenue of $20.4 million.

On Thursday, Morgan Joseph analyst Kevin Dede increased his 2008 earnings estimate to $0.60 per share, from $0.55 per share. In contrast, Needham & Co. analyst Richard Valera reduced his 2008 earnings estimate to between $0.60 and $0.75 per share and his sales estimate to a range of $93.8 million to $96.8 million.

In Thursday’s trading, SMSI shares soared 28.57%, or $1.46, to $6.57. Over the last 52 weeks, shares have ranged from $4.44 to $21.20.

The Russell 2000 (NYSE: IWM) is firmly in negative territory midway through the session. At 1:49 p.m. ET, the small-cap index was down 14.59 points, or 2.13%, to 669.15. The Dow Jones Industrial Average (INDU) had lost 120.89 points, or 0.99%, to 12,134.10.

The bears are running the show on news that residential mortgage lender Thornburg Mortgage Inc. (NYSE: TMA) and investment company Carlyle Capital Corp. Ltd., which has made residential mortgage-backed securities, have failed to meet margins calls.

A “margin call” is when banks call in their loans to investors, who are in turn forced to sell off assets to raise cash, leading to a reduction in the price of those assets and more margin calls and losses.

Separately, a report by the U.S. Labor Department before the start of trading showed that jobless claims for the week ended March 1 fell 24,000 to 351,000, from an upwardly revised 375,000 the preceding week. Economists were expecting to see a smaller decline.

However, the number of people receiving unemployment benefits increased 29,000 to 2.83 million, the highest level in two years.

With stocks small and large falling, shares of airline companies are leading the way down.

Among small-cap airlines, Indianapolis-based Republic Airways Holdings Inc. (Nasdaq: RJET) is flying at a lower altitude.

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open with a decline.

Stocks are set for a bearish opening following news this morning that Carlyle Capital Corp. Ltd, which invests in fixed income asset classes, including residential mortgage-backed securities, has failed to meet margin calls on its $21.7 billion portfolio.

The Russell 2000 had a tame session Wednesday, gaining 2.76, or 0.41%, ending at 683.74. Price action the last several sessions has been sloppy after yet another double top on daily charts back on Feb. 27. Look for support today at 677 and 670. There is minor support below there at 666 and 660, but a decisive breach of 670 opens the door to test the recent low down at 650. On the upside, resistance comes in at 692, then at 701 and 712.

This morning's weekly claims report at 8:30 a.m. ET might attract a little more interest than this report usually would garner, just because we’re facing the big unemployment release Friday.

The Russell 2000 (NYSE: IWM) posted a large gain and outpaced the other major U.S. indices on good news from bond insurers. The small-cap index added 15.03 points, or 2.16%, to 710.46. The Dow Jones Industrial Average (INDU) climbed 189.20 points, or 1.53%, to 12,570.22.

On a year-to-date basis, the Russell 2000 has retreated 7.25%, while the Dow is down 5.24% and the S&P 500 has declined 6.58%.

Stocks ended the session with a surge on news that rating agency Standard & Poor’s reaffirmed the Triple A rating of bond insurers MBIA Inc. (NYSE: MBIA) and Ambac Financial Group, Inc. (NYSE: ABK).

The past couple of weeks had seen speculation that the companies will be downgraded, a move that will create problems for banks that have invested in bonds and probably lead to more losses due to writedowns on subprime mortgages.

Separately, several banks are planning a $3 bailout of Ambac Financial Group.

The two bond insurers had insured subprime-mortgage debt and are suffering the consequences of the ongoing stagnation in the U.S. housing sector.

Speaking of housing, the National Association of Realtors reported after the start of trading that sales fell 0.4% to an annualized rate of 4.89 million units, down from an upwardly revised 4.91 million units in December.

Investors actually took that as bullish news because economists were expecting to see a fall to an annual rate of 4.80 million units.

The Russell 2000 (NYSE: IWM) is posting big gains on news that a major bond insurer will maintain its rating. At 3:23 p.m. ET, the small-cap index was up10.61 points, or 1.53%, to 706.04. The Dow Jones Industrial Average (INDU) had advanced 132.61 points, or 1.07%, to 12,513.63.

Stocks small and large rose sharply shortly after 2 p.m. ET on news that rating agency Standard & Poor’s will maintain its triple-A rating on bond insurer MBIA Inc. (NYSE: MBIA).

The past couple of weeks had seen speculation that the Armonk, N.Y.-based company will be downgraded, a move that will create problems for banks that hold bonds insured by MBIA and probably lead to additional writedowns.

There were reports earlier today that several banks will put together a $3 billion bailout plan for rival bond insurer Ambac Financial Group, Inc. (NYSE: ABK), also with the intent of preventing a damaging downgrade.

Bond insurers made a mistake when they decided to insure subprime-mortgage debt.

Small-caps are up but shares of DivX, Inc. (Nasdaq: DIVX) are falling on news that the maker of video compression software will shut down one of its websites.

Similarly, Aliso Viejo, Calif.-based Smith Micro Software, Inc. (Nasdaq: SMSI) is seeing its stock decline in news the developer of wireless communications software products got downgraded by an analyst.

Elsewhere, shares of Shiloh Industries, Inc. (Nasdaq: SHLO) are flat on news the manufacturer of engineered products plans on sticking to its current business model in 2008.

“Moving forward, we continue to maintain our focus on cash flow optimization, capital asset utilization and debt reduction while we pursue opportunities for profitable growth,” CEO Theodore Zampeti said in a conference call.

Smith Micro Software Inc. (Nasdaq: SMSI) was downgraded today by JP Morgan to “neutral” from “overweight” due to concerning remarks by the company’s CEO, exposure to the consumer discretionary environment and a greater-than-anticipated negative impact from Verizon Communications Inc.’s (NYSE: VZ) shift toward more of a software model.

“These new concerns are enough to motivate us to step aside after a frustrating few months to wait on clarity of improvement before re-assessing,” JP Morgan analyst Lauren Ye wrote in a research note today. 

The downgrade sent shares barreling to a 52-week low on high volume intra-session. Shares skidded 16.77%, or $1.08, to $5.36 at 2:22 p.m. ET. Shares of Smith Micro Software have been trading in the range of $5.82 to $21.20 for the past 52 weeks.

The analyst also cited the company’s inability to drive instantaneous accretion from its PCTel and E-frontier acquisitions last year and what appears to be a more “back-end loaded 2008.”

Smith Micro acquired E-frontier’s 3D graphic and animation software solutions in November, and telecommunications software and hardware manufacturer PCTel in December.

According to Ye, Smith Microware’s CEO indicated at an investor conference that 2007 revenue would be in “the low 70s.” As a result, the analyst has lowered her fourth-quarter revenue estimate to $20 million from $21.8 million.

“We now think multimedia got an even worse hit from the software transition at Verizon,” wrote Ye.

The Russell 2000 (NYSE: IWM) is rising despite news of another decline in home sales.

At 10:18 a.m. ET, the small-cap index was up 5.73 points, or 0.82%, to 701.16. The Dow Jones Industrial Average (INDU) had advanced 41.92 points, or 0.34%, to 12,422.92.

Small-cap stocks briefly opened positive on speculation that several banks will announce a $3 billion bailout plan for bond insurer Ambac Financial Group, Inc. (NYSE: ABK) so that the New York-based company will be able to keep its credit rating.

But the initial rise was short-lived and within minutes the Russell 2000 was in the red. The index rebounded shortly after 10 a.m. ET following news that existing U.S. home sales fell 0.4% in January to an annualized rate of 4.89 million units.

That’s the sixth consecutive monthly drop. December’s pace was an upwardly revised 4.91 million units.

Shares of DTS, Inc. (Nasdaq: DTSI) are higher following news that the Agoura Hills, Calif.-based provider of entertainment technology was upgraded by an analyst.

On the flip side, wireless communications software products and services provider Smith Micro Software, Inc. (Nasdaq: SMSI) had its target price reduced to $11 from $20.

Meanwhile, Agria Corp. (NYSE: GRO), which produces and sells agricultural products, said before the start of trading that it expects revenues for the fourth quarter of 2007 to reach be at the high-end of prior guidance. The Chinese company had previously announced that it expects revenues between $31.8 million and $33.8 million.

The Russell 2000 (NYSE: IWM) futures are up slightly and the small-cap index is set to open higher.

The mood on Wall Street is cautiously bullish following speculation that several banks will announce a $3 billion bailout plan for bond insurer Ambac Financial Group, Inc. (NYSE: ABK) so that the New York-based company will be able to keep its credit rating.

The Russell 2000 continued a pattern of wicked intraday volatility on Friday, rejecting a morning slump to fresh move lows to close in the upper portion of the range, forming a little bullish pattern on short-term charts. The Index closed at 695.43, down only 0.85 for the day, after enduring double-digit declines for much of the session.

Monday’s 10:00 a.m. ET existing home sales report could spark a little morning volatility, but is just the first of a smorgasbord of economic releases to come this week. Resistance Monday is just overhead at our swing line at 700, then at 704, 712 and 721. Meanwhile, support is at 688, 681 and 675.

The Russell 2000 (NYSE: IWM) is posting gains as investors hold their breath ahead of the U.S. Federal Reserve’s decision on interest rates. At 2:01 p.m. ET, the small-cap index was up 3.81 points, or 0.48%, to 795.01.The Dow Jones Industrial Average (INDU) had added 33.09 points, or 0.24%, to 13,760.12.

Stocks are in positive territory as investors wait for the Fed to announce its decision on monetary policy. Financial markets are expecting to see the federal funds rate lowered at least 0.25%. More bullish voices are calling for a decline of 0.50% or even 0.75%.

The U.S. central bank’s target interest rate now stands at 4.5%. In its latest two meetings, the Fed lowered the rate a cumulative 0.75% in order to help the U.S. economy get through a rough patch caused by declining home prices and the financial aftershocks of the subprime mortgage meltdown.

“The U.S. economy is now in the danger zone,” says a report released today by forecasting company Global Insight. The Boston, Mass.-based firm’s “Top-10 Economic Predictions for 2008” shows the U.S. economy showing no growth in the last quarter of 2007 and weak growth during the first six months of 2008.

The Russell 2000 (NYSE: IWM) is higher as investors anticipate the U.S. Federal Reserve will lower its target interest rate.
 
At 10:41 a.m. ET, the small-cap index had climbed 1.86 points, or 0.24%, to 793.06. The Dow Jones Industrial Average (INDU) had declined 20.64 points, or 0.15%, to 13,706.39.

Small-cap stocks are posting modest gains as investors focus their attention on the U.S. Federal Reserve, which is meeting today to decide on monetary policy. Financial markets have recently taken the view that a 0.25% cut in the federal funds rate, the rate at which commercial banks make overnight loans to each other, is a sure bet.

The target interest rate currently stands at 4.5%. The U.S. central bank will announce its decision at 2:15 p.m. ET.

A cut will help boost the economy, which some economists say could fall into recession due to the ongoing slump in the housing sector and the credit squeeze.

Also helping the bulls are solid earnings news from major players.

Telecommunications giant AT&T Inc. (NYSE: T) said that it will buy back up to $15.2 billion of shares. The San Antonia, Texas-based company also said that it expects to see growth in fiscal 2008 earnings.

The Russell 2000 (NYSE: IWM) futures have moved higher and the small-cap index is likely to rise as investors await the Fed’s decision.

All eyes are on the U.S. Federal Reserve, which is meeting today to decide on monetary policy. A decision will be announced at 2:15 p.m. ET. Many observers are betting that falling house prices and restricted lending from banks will prompt the central bank to lower the federal funds rate to give the economy a lift.

The federal funds rate, the rate at which commercial banks make overnight loans to each other, currently stands at 4.5%. Financial markets have recently taken the view that a 0.25% cut is baked in, with more courageous voices anticipating a decline of 0.5%.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Genesis Microchip Inc. (GNSS), up 57% on news it is being purchased by STMicroelectronics NV (STM) for about $336 million.
• Allos Therapeutics, Inc. (ALTH), up 13% on news it will present a corporate overview at a conference in San Francisco.
• Smith Micro Software, Inc. (SMSI), up 13% on news it will buy part of Pctel Inc. (PCTI) for $59.7 million.

Biggest percentage losers:

• Spreadtrum Communications, Inc. (SPRD), down 7%.
• Orasure Technologies, Inc. (OSUR) down 3%.
• Cardica Inc. (CRDC) down 3% on news of a partial exercise of the over-allotment option granted to the underwriters of its public offering.

The Russell 2000 (NYSE: IWM) fell extra hard today as the major U.S. indices tumbled on news of poor corporate earnings and unimpressive economic reports. The small-cap index lost 32.84 points, or 3.97%, to 795.18—its biggest percentage loss this year. The Dow Jones Industrial Average (INDU) tumbled 362.14 points, or 2.60%, to 13,567.87.

On a year-to-date basis, the Russell 2000 has increased 0.99%, while the Dow has added 8.76% and the S&P 500 has gained 6.48%.

The day began with steep declines on news that Exxon Mobil Corp. (NYSE: XOM) suffered a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations, while Citigroup Inc. (NYSE: C) was downgraded to “sector underperform” from “sector perform” by investment bank CIBC World Markets over concerns that it might have to cut its dividend to shore up its capital.

Small caps led the way down as stocks dove so sharply that trading curbs were introduced to prevent a massive sell-off.

Investors also had to digest economic news, when the U.S. Commerce Department reported that personal income increased at a seasonally adjusted rate of 0.4% in September, as expected, compared with a rise of 0.3% in August.

However, personal consumption in September increased 0.3%, below the projected rise of 0.4%. That’s a worrying sign that the American consumer might be cutting down on spending in the face of higher oil prices and a recession in the housing sector. In August, personal consumption added a downwardly revised 0.5%.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are still well below the flat line on negative news from corporate heavyweights. At 2:01 p.m. ET, the small-cap index had dropped 25.55 points, or 3.9%, to 802.47. The Dow Jones Industrial Average (INDU) had lost 264.27 points, or 1.9%, to 13,665.74.

The day began with sharp declines on news that Exxon Mobil Corp. (NYSE: XOM) reported a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations, while Citigroup Inc. (NYSE: C) was downgraded to “sector underperform” from “sector perform” by investment bank CIBC World Markets over concerns that it might have to cut its dividend to raise more than $30 billion to shore up its capital.

Stocks dove so sharply that trading curbs were introduced to prevent a massive sell-off.

The overwhelmingly bearish mood is also due to investors’ realizations that an additional cut in the target interest rate is unlikely during the remainder of 2007.

On Wednesday the U.S. Federal Reserve lowered the federal funds rate to 4.5% from 4.75% but made no reference about the possibility of future action.

In economic news, the U.S. Commerce Department reported before the opening that the price index for personal consumption expenditures, a measure of inflation, added 0.2% in September after staying put in August. The core PCE, which excludes the more volatile costs of food and energy, also gained 0.2%.

Shares of Smith Micro Software, Inc. (Nasdaq: SMSI), tumbled to a new 52-week low today after the wireless communications software products and services developer reported after Wednesday’s close that its third-quarter profit fell on account of rising costs.

For the three months ended Sept. 30, the small cap recorded earnings of $0.47 million, or $0.02 per share, compared with $2.5 million, or $0.09 per share earned in the same quarter last year. Excluding stock options costs and the amortization of intangibles, the company earned $0.21 per share for the quarter, right in line with the mean estimate of eleven analysts surveyed by Thomson Financial.

Despite lower profit, the company managed to book strong revenues of $20.4 million, a 38% increase over the $14.8 million reported in the third quarter of 2006. Eleven analysts on average were projecting revenues of $20.08 million for the quarter.

Adding to investors’ glum, Smith Micro Software was downgraded by Merriman Curhan Ford and Piper Jaffray.

Merriman Curhan Ford analyst Seth Potter downgraded the company to a rating of “neutral” from “buy,” citing in a research note that he believes that, “the changing industry dynamics, customer concentration and potential dilutive acquisition/integration risk outweighs the company's in-line third quarter.”

Potter says investors should remain on the sidelines, as the market has already priced in the company’s wireless application prospects and shares are fully valued at the current share price.

The analyst says the company’s revenue base is not diversified enough, as Verizon Wireless (NYSE: VZ) comprises more and more of the company’s income stream. According to Potter, Verizon accounted for 69% of the company’s revenues in the third quarter, up from 60% in the second quarter.

Potter says he thinks the company’s acquisition strategy is “key,” as any differing revenues would diversify its revenue base.

As a result of the combination of estimated slower multimedia revenue, increasing operating expenses and taxes, along with a more competitive environment, Potter said he is lowering his fiscal year 2008 EPS estimate to $0.76 from $1.00. The consensus of eleven analysts polled by Thomson Financial is for 2008 EPS of $0.95. Potter forecasts earnings of $0.82 for fiscal 2007, while eleven analysts polled by Thomson expect earnings of $0.84.

Shares of Smith Micro Software (SMSI) fell 25.83%, or $3.97, to a new 52-week low of $11.44 at 1:18 p.m. ET. Shares of Smith Micro Software have been trading in the range of $11.10 to $21.20 for the past 52 weeks.

The Russell 2000 (NYSE: IWM) and the other U.S. indices are falling hard on news of poor corporate earnings and mixed economic reports.

At 10:29 a.m. ET, the small-cap index had lost 20.94 points, or 2.53%, to 807.08. The Dow Jones Industrial Average (INDU) was down 224.36 points, or 1.61%, to 13,705.65.

Stocks suffered a steep drop out of the gate following news that Exxon Mobil Corp. (NYSE: XOM) reported a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations.

The world’s largest publicly traded oil company announced a net income of $1.70 per share, down from $1.77 per share a year earlier and below analysts’ projected earnings of $1.75 per share.

Contributing to the overwhelmingly bearish sentiment was news that Citigroup Inc. (NYSE: C) was downgraded to “sector underperform” from “sector perform” by investment bank CIBC World Markets. CIBC said that Citigroup might have to cut its dividend or sell assets in order to raise more than $30 billion to shore up its capital.

In economic news, the U.S. Commerce Department reported that personal income increased at a seasonally adjusted rate of 0.4% in September, compared with a rise of 0.3% in August. That’s in line with economists’ expectations.

However, personal consumption in September increased 0.3%, below the projected rise of 0.4%. In August, personal consumption added a downwardly revised 0.5%.

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open with a drop on news of a disappointing profit at Exxon Mobil.

The bears are dominant in pre-market trading following news that Exxon Mobil Corp. (NYSE: XOM) reported a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations.

Irving, Texas-based Exxon Mobil, the world’s largest publicly traded oil company, booked a net income of $1.70 per share, down from $1.77 per share a year earlier and below analysts’ projected earnings of $1.75 per share.

In economic news, the U.S. Commerce Department reported that personal income increased at a seasonally adjusted rate of 0.4% in September, compared with a rise of 0.3% in August. That’s in line with economists’ expectations.

However, personal consumption in September increased 0.3%, below the projected rise of 0.4%. In August, personal consumption added a downwardly revised 0.5%.

Meanwhile, initial jobless claims for the week ended Oct. 27 fell 6,000 to 327,000 on a seasonally-adjusted basis. That’s a larger drop than the one expected by economists. But on the other hand, the four-week average—which is a more stable measure—increased 1,750 last week to 327,000.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Dynavax Technologies Corp. (DVAX), up 22% on news of a partnership with pharmaceutical giant Merck & Co. (MRK).
• Spreadtrum Communications Inc. (SPRD), up 15% on news of higher third-quarter earnings.
• i2 Technologies Inc. (ITWO), up 14% on news of a higher third-quarter profit.

Biggest percentage losers:

• Smith Micro Software Inc. (SMSI), down 22% on news of a decline in third-quarter profit.
• Vanda Pharmaceuticals Inc. (VNDA), down 17% on news it plans to offer $100 million of convertible senior notes due 2014.
• China Precision Steel Inc. (CPSL) down 11% on news it has agreed to issue and sell an aggregate of 7,100,000 shares of its common stock.

Cardica, Inc. (Nasdaq: CRDC), Pacific Ethanol Inc. (Nasdaq: PEIX)  and Telular Corp. (Nasdaq: WRLS) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $500 million:

Before the opening bell, Smith Micro Software, Inc. (Nasdaq: SMSI) announced it signed a deal with IT company VMware, Inc. (Nasdaq: VMW) to offer VMware Fusion software, which allows Mac users to run Windows software.

“The addition of VMware Fusion to our ever-growing product line is testament to our ability to continuously evaluate and add quality, cutting-edge products and services to our valued customers,” said David Polzine, Smith Micro’s product manager.

VMware Fusion retails for a suggested price of about $80. The software is available on Smith Micro’s websites, Apple stores and other retailers.

Smith Micro also announced before the start of trading that it will present at the Merriman Curhan & Ford 4th Annual Investor Summit in San Francisco on Monday, Sept. 17. The conference will be attended by securities analysts, fund managers and institutional investors.

In today’s trading, Smith Micro shares closed up 7.19%, or $1.10, at $16.39. Over the last 52 weeks, shares have ranged from $11.91 to $21.20.

New Gold Inc. (AMEX: NGD), Chelsea Therapeutics International Ltd. (Nasdaq: CHTP) and Chindex International, Inc. (Nasdaq: CHDX) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) is leading the rally with the Dow Jones Industrial Average (INDU) in tow as stocks react to news of mergers and acquisitions.

At 10:04 a.m. ET the small-cap index had added 9.59 points, or 1.22%, to 797.97. The Dow was up 97.71 points, or 0.75%, to 13,188.57.

MGM Mirage (NYSE: MGM) will sell a 9.5% stake to Dubai World for $5 billion, according to news reports this morning. That comes to a price of $84 per share, 13% above the stock’s closing price of $74.32 on Tuesday.

Under the terms of the deal, which was approved by MGM’s board on Tuesday, Dubai World will also pay $2.7 billion to acquire 50% of CityCenter, a hotel and residential development slated to open in 2009.

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Syntax-Brillian Corp. (Nasdaq: BRLC) and Wild Oats Markets, Inc. (Nasdaq: OATS) are among the most actively traded companies in Thursday pre-market trading among those with market capitalizations under $500 million:

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are higher following news of strong corporate earnings and mixed economic data.

At 10:30 a.m. ET the Russell 2000 had added 0.93 points, or 0.12%, to 778.85. The Dow had gained 24.47 points, or 0.18%, to 13,386.84.

The bulls took charge right out of the gate on news that Finnish mobile phone maker Nokia Corp. (NYSE: NOK) reported a doubling of its second-quarter profit.

Viacom Inc. (NYSE: VIA), which owns MTV Networks and Paramount movie studios, also beat analysts’ net income projections, while Seattle-based coffee chain Starbucks Corp. (NYSE: SBUX) saw its quarterly revenue rise 20% to $2.4 billion from $2 billion a year earlier.

In economic news, the number of Americans looking for work increased slightly for the week ended July 28, but that rise was below economists’ projections.

The U.S. Labor Department reported that jobless claims added 4,000 to 307,000, while economists were expecting an increase of 7,000 to 310,000.

Clouding the economic picture was news that new orders for manufactured goods increased 0.6% in June, below the anticipated 1.3%, according to the U.S. Census Bureau.

The following are the most actively traded company's with market capitalizations under $500 million:

At a Tuesday midday investor presentation, Smith Micro Software Inc.’s (Nasdaq: SMSI) CEO Bill Smith took swipes at rival Apple Inc.’s (Nasdaq: AAPL) cell phone offering, citing security, bandwidth capacity and price as problems. Smith Micro Software’s new cell phone media software, which was revealed today at the C.E. Unterberg investor conference in New York City, competes with Apple’s hot-selling iPhone.

“We always like to come to the Unterberg conference with something a little extra,” Smith said, before announcing the mobile edition of the company’s Quicklink Media software.

Smith Micro’s Quicklink software provides centralized music and media management features, including song play lists, web browsing, media search and downloads and an online store. Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S) are branding the software for inclusion with cell phone bundles. The Quicklink software, which runs on Microsoft Smartphones, offers features and a graphical interface that should be comfortable to someone used to using Apple’s popular iTunes software, Smith said. The Aliso Viejo, Calif.-based company also plans to offer the software directly to consumers for a price between $30 and $50.

“I think it’s way cool and it’s a heck of a lot better way to go than the $600 option,” Smith said.

Smith also maligned the iPhone’s security features, which have received negative press. Smith Micro’s software runs on industry standard products that are already accepted by corporations, he said. He also noted that the company’s software works with Microsoft’s popular Outlook program.

“You’re e-mail’s going to be safe,” Smith said. “You don’t have to hide it when you go into the office.”

The Russell 2000 and the other major indices are rising this morning, as investors await the release of economic data.

At 10:03 a.m. ET the Russell 2000 was up 3.49 points, or 0.42 percent, to 830.95. Dow Jones Industrial Average was up 56 points, or 0.42 percent, to 13,408.05.

The U.S. Commerce Department will release numbers on sales of new homes in May at 10 a.m. ET. Economists expect that the pace of sales has slowed after a bump in April.

Consumer confidence index for June will also be grabbing the headlines. The report by the Conference Board is also expected at 10 a.m. ET.

The following were the most actively traded companies in Tuesday's trading among those with market capitalizations under $500 million:

JP Morgan initiated coverage on Smith Micro Software, Inc. (Nasdaq: SMSI) with an “overweight” rating.

The Upper Deck Co. said after Monday’s closing bell it is launching a hostile tender offer to acquire baseball trading card maker The Topps Company, Inc. (Nasdaq: TOPP) for $425 million.

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

Developer and marketer of wireless communications software products and services Smith Micro Software Inc. (Nasdaq: SMSI) was upgraded by Jefferies & Co. to a “buy” rating from a “hold” rating on news that Verizon appears to have softened its stance on the XP/Vista issue.

Jeffries & Co. analyst James Alexander said there are indications that Verizon has completed testing Smith Micro Software's Vista-compatible Music Essential Kits (MEKs) for several high volume music handsets and that shipments could begin anytime.

On account of Verizon’s completed testing, Alexander expects second-quarter earnings to clock in “in line” to “slightly above” previously calculated estimates.

Alexander writes, “With only 6 days remaining in Q2'07, the impact to the quarter will likely be modest with revenue in line to slightly better than our $14.7 million estimate.”

Alexander’s earnings estimates for the second quarter of 2007 remain unchanged at $14.7 million, or $0.14 per share, compared with $0.13 per share for the second quarter a year earlier. However, his estimates for the 2007 fiscal year increase to $77 million or $0.84 per share, from his previous estimate of $76 million or $0.83 per share. Alexander’s 2008 estimates increase to $109 million, or $1.00 per share, from a previously estimated $107 million or $0.98 per share.

The major U.S. indices are mixed early this morning following news that U.S. existing home sales fell slightly in May.

At 10:24 a.m. ET the Russell 2000 was down 0.10 points, or 0.01 percent, to 834.65. Dow Jones Industrial Average was up 71.53 points, or 0.54 percent, to 13,431.79.

Purchases of existing home sales declined 0.3% in May to an annual rate of 5.99 million, the National Association of Realtors reported at 10 a.m. ET. That’s the lowest level since June 2003. April sales were 6.01 million at an annualized rate.

Not surprisingly, the number of homes waiting to be sold increased 5% to 4.43 million. The median asking price of an existing home fell 2.1% to $223,700.

The data suggest that the housing sector is continuing to sag.

The following were the most actively traded companies in Monday's trading among those with market capitalizations under $500 million.

Sunnyvale, Calif.-based Alliance Fiber Optic Products Inc. (Nasdaq: AFOP) raised its revenue guidance for the quarter ended June 30, 2007.  The maker of fiber optic components expects to report net sales above $8.3 million, the company said this morning.  Analyst estimates were unavailable.  The stock has added $0.32, 18%, to $2.11.

Shares of Syntroleum Corp. (Nasdaq: SYNM), which develops a process for converting natural gas or gasified coal into synthetic liquid hydrocarbons, are higher on news this morning that the Tulsa, Okla.-based company has agreed to a $150 million venture with Tyson Foods Inc. (NYSE: TSN) to produce synthetic fuels for the renewable diesel, jet, and military fuel markets.

Brokerage firm Jefferies & Co. raised its rating on Smith Micro Software, Inc. (Nasdaq: SMSI), a maker of software for wireless devices, to “buy” from “hold.”

The Philadelphia Inquirer reported this morning that the sale of Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) could be announced this week, according to people familiar with the deal.

Sangamo Biosciences, Inc. (Nasdaq: SGMO) revealed early phase data from its AIDS treatment ZFP Therapeutic program at the American Diabetes Association conference. The company reported “statistically significant” improvement in subjects with diabetes complications.

Business software maker NetScout Systems, Inc. (Nasdaq: NTCT) raised its first quarter revenue guidance to between $27 million and $28 million, up from its prior guidance of $26 million to $27 million.

Biopharmaceutical company Neurogen Corp. (Nasdaq: NRGN) reported positive top-line results for the mid-phase study of its insomnia treatment NG2-73.

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

Developer and marketer of software solutions and services Smith Micro Software, Inc. (Nasdaq: SMSI), announced the availability of its new StuffIt Wireless Windows Mobile Edition today.

Shares of Cleveland BioLabs Inc. (Nasdaq: CBLI) were up on a report that the U.S. Department of Defense may be the first customer for the company’s radiation protection compound called Protectan or CBLB502.

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

Whenever a giant, well-funded corporation jumps into a market dominated by a small company, executives at the smaller business always sing the same tune – something along the lines of: “We welcome the competition. It legitimizes our market.”

Unfortunately, the little guys are usually whistling past the graveyard – or on their way to it.

Smith Micro Software Inc. (SMSI) would seem, at first glance, to be in exactly that position. The company’s big money-maker is software that sounds familiar to anyone who has ever heard of the iPod: its Music Essentials program allows people to download music from the Internet onto their PCs and then zip those tunes over to a handheld device for easy on-the-road listening. The big difference: the portable device is a cell phone, not an iPod.

Now Apple, Inc. (Nasdaq: AAPL) is turning up the volume. On June 29, it is planning to unveil its long-awaited iPhone, first announced back in January. It’s an impressive piece of engineering. The iPhone uses wi-fi to connect to the Internet, and includes a Web browser and Google Maps. iPhone can play video on a high-resolution screen, and can download music just like an iPod. These features, along with Apple’s famously elegant design prowess, make Smith Micro’s software look like last year’s technology – which it is. It was first introduced in January 2006.

But there are two problems with the iPhone. It comes with a hefty price of $500 to $600, and will be available only to people using AT&T Inc.’s (NYSE: T) cellular service.

That leaves space for Smith to grow. SMSI is “the only offer that counters AT&T and the iPhone,” says Amit Dayal, an analyst with Rodman & Renshaw. Last November, Verizon Communications Inc.'s Verizon Wireless (NYSE: VZ) became the first to release phones with Smith Micro’s music software. Since then, Music Essentials has become Smith Micro’s biggest product line. The company reported $17.7 million in revenues in the first quarter, up 79% from a year ago, with pro-forma net income up 114% to $6.2 million ($0.21 per share.) On a GAAP basis, earnings were $1.84 million, compared with $1.81 million a year ago. Sprint signed up for the service early this year (that service has not yet been started).

U.S. stocks opened higher across all indices after Wednesday’s record closes despite news of the slowest quarterly economic growth in nearly five years.

At 10:09 a.m. ET the Russell 2000 was up 5.03 points, or 0.60 percent, to 848.38.  Dow Jones Industrial Average had added 33.48 points, or 0.25 percent, to 13,666.38.

Preliminary numbers show the American economy grew at an annual rate of 0.6% during the first three months of 2007, the U.S. Commerce Department said before the opening bell.  That’s the worst reading since the fourth quarter of 2002.

On the mergers and acquisitions front, Wachovia Corp. (NYSE: WB) will buy brokerage firm A.G. Edwards Inc. (NYSE: AGE) for $6.8 billion in cash and stock, the Charlotte, N.C.-based bank said before the start of trading.

The following were the most actively traded companies in Thursday's trading among those with market capitalizations under $500 million:

The following were the most actively traded companies in Thursday's trading among those with market capitalizations under $500 million:

These are the biggest percentage losers among companies with market capitalizations under $500 million:

Small-cap stocks are trading close to the flat line shortly after the opening this morning, as news of a stronger-than-expected rise in U.S. productivity was offset by a steep profit drop at General Motors Corp.

At 9:54 a.m. ET the Russell 2000 had lost 1.66 points, or 0.20 percent, to 826.80. The Dow Jones Industrial Average was up 4.30 points, or 0.03 percent, to 13,216.18.
The productivity of American workers grew more than expected in the first quarter of 2007, the Labor Department said before the opening bell.  The annualized growth rate of 1.7% was just above economists’ expectations of a 1.6% rise.  Productivity grew 2.1% in the fourth quarter of 2006.

On the other hand, labor costs grew 0.6%, significantly below the rise of 6.2% posted in the last three months of 2006.

In business news, auto giant General Motors Corp. (NYSE: GM) reported a sharp decline in quarterly profit before the opening.  Net income was $62 million, or $0.11 per share, compared with $602 million, or $1.06 per share the first quarter of 2006.  First quarter earnings without items were $94 million, or $0.17 per share, below analysts’ expected earnings of $0.87 per share.

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

Shares of Smith Micro Software Inc. (Nasdaq: SMSI) slid on heavy volume today after the Aliso Viejo, Calif.-based company released its first quarter results.

For the three months ended March 31, Smith Micro Software reported pro forma net income of $6.2 million, or $0.20 per share, on record revenue of $17.7 million. GAAP earnings per share totaled $1.8 million, or $0.06 per share.

Ten analysts polled by Thomson First Call had estimated earnings per share of $0.17 on revenue of $17.5 million.

In after-hours trading today, Smith Micro’s stock fell by $1.83, or 11%, to $14.80 after closing up $0.80, or 5%, at $16.63.

Aliso Viejo, Calif.-based Smith Micro Software, Inc. (Nasdaq: SMSI) is not contributing to a rise in the Russell 2000 this morning despite news the wireless communication software company has been issued a patent covering methods of remotely updating an electronic device via a public network.  At 9:47 a.m. ET shares were down $0.07, or 0.43%, to $16.07. 

Meanwhile, the Russell 2000 was up 2.84 points, or 0.34 percent, to 829.20.  That’s within reach of its record close of 831.44 on April 16.

Shares of EpiCept Corporation (Nasdaq: EPCT) are gaining on news this morning that the pharmaceutical company’s drug Azixa for the treatment of primary and secondary brain tumors was shown to be effective in clinical studies.  Shares have moved up $0.11, or 5.07%, to $2.28.

Shares of Waukegan, Ill.-based biopharmaceutical firm NeoPharm, Inc. (Nasdaq: NEOL) are in positive territory after news the company will reduce its workforce by 42% and make management changes.  The stock is up $0.03, or 1.82%, to $1.68.