Tag - Sptn

Small-cap shares were hovering near steady levels in morning activity, absorbing a large batch of data and Fed speak without any major price gyrations. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.63, or 0.09%, at 735.43.

The Philly Fed survey came in at minus 15.6, which was better than the projection for a decline of 19. That report was on the heels of the Industrial Production release and the NY Manufacturing Survey, providing quite a bit of data this morning on the manufacturing front — none of it all that upbeat. Industrial Production was pegged at minus 0.7%, which was below the forecast for a dip of 0.3%. Meanwhile, the NY Manufacturing data came in at minus 3.23 for May, below the forecast for 0.00.

In addition, the Weekly Claims report edged slightly higher to 371,000, which was just above the forecast of 370,000.

While investors were busy digesting a glut of morning economic data, Federal Reserve Chairman Ben Bernanke was busy talking about financial institutions and how to better prepare for crisis situations. His basic comments have been stated before, and the market appeared to focus on other factors for early direction.

Crude oil prices jumped back higher this morning, and were trading above $125 dollars a barrel. Pump prices around the country have spiked higher this week, which could crimp consumer spending habits. A direct victim of higher gas prices would appear to be retailers, but they have been fairing well of late, with the S&P Retail Index climbing yesterday and on solid footing this morning following better-than-expected . . .

Fonar Corp. (Nasdaq: FONR), WSI Industries, Inc. (Nasdaq: WSCI) and A. Schulman, Inc. (Nasdaq: SHLM) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

With the market roiling in credit, housing and consumer woes, now may not seem the time to restock the pantry. Consumer reluctance has taken the shine off most retailers, and the fortunes of Spartan Stores, Inc. (Nasdaq: SPTN) are no exception. But Spartan’s got bones that may bend but not break, making the recent selloff an opportunity to start buying this growing and diversified Midwestern grocer.

Spartan, headquartered in Grand Rapids, Mich., runs a variety of retail grocery stores as well as a large distribution operation. Its key is to grow through supermarket acquisitions and extend its distribution network: at this it has been very, very good. Its total retail base is up 43% since the end of fiscal 2004. Its five-year earnings-per-share growth rate is 15.39%, beating the retail grocery sector’s 12.11% gain. And shares are up about 35% in the past 52 weeks, despite steep losses since the beginning of the month. 

Spartan has a solid balance sheet that should help it to shoulder tough times. The company recently added financial flexibility with a $110 million private placement of convertible senior notes, the capital from which will go toward its revolving credit facility and partly to pay for the acquisition of Felpausch, a privately owned grocery.

“In spite of credit market jitters, Spartan is also well capitalized to pursue its growth strategy given the recent $110 million upsized convert offering,” said analyst Karen Short of Friedman, Billings, Ramsey and Co. in a note after release of first quarter fiscal 2008 results on August 1. Its debt-to-total capital ratio on June 23, the end of the first quarter, was 48%, rising from 39% at the end of fiscal 2007 primarily on obligations related to the Felpausch purchase.

Spartan Stores (Nasdaq: SPTN) Wednesday afternoon reported consolidated net sales and earnings for the fourth quarter ended March 31 that eclipsed expectations, driving the Grand Rapids, Michigan-based supermarket company to new 52-week highs in after-hours trading.

Net earnings for the quarter increased 36.4% to $7.2 million, or $0.34 per diluted share, from $5.3 million, or $0.25 per diluted share, in the same period last year, and better than expectations from two analysts for $0.28.

Consolidated net sales for the 13-week fourth quarter were up 23.6% percent to $559.5 million, from $452.8 million in last year's 12-week fourth quarter, with the extra week in fiscal 2007's fourth quarter adding $42.3 million to sales. One analyst had been looking for revenues of $553.3 million.