Tag - Swhc

"Vice stocks have consistently outperformed most other market sectors, especially during recessionary times," says Alexander Green, whose 'Seven Deadly Sins Portfolio' is up 59% in six months.

One strong performer in that portfolio is Smith & Wesson (Nasdaq: SWHC). Here, the investment director of The Oxford Club explains why investors should load up on the gun maker.

"Its world-famous .357 Magnum was developed specifically for law enforcement agencies, and the Smith & Wesson .38 Special has been adopted as the caliber of choice at one time or another by hundreds of police departments.

"The Supreme Court has recently upheld Second Amendment rights and Smith & Wesson is one of the world's leading suppliers, forging a well-deserved reputation for high-quality precision weapons.

"The company still regularly wins shooting industry awards; it recently received top awards from the Shooting Industry Academy of Excellence including 'Rifle of the Year' and 'Manufacturer of the Year.'

"Also, the Maryland Natural Resources Police recently converted to the Smith & Wesson M&P pistol, citing 'enhanced ergonomics and ambidextrous controls,' as well as the officers' ability to disassemble the firearm without pressing the trigger.

"Last month, Smith & Wesson completed the acquisition of Universal Safety Response, the original creator of the patented GRAB vehicle safety barrier and the fastest growing barrier technology in the world.

"This buyout helps the firm expand its reach beyond firearms and into the broader market for products that provide safety, security and protection.

"Of course, as investors our primary interest is in numbers. And Smith & Wesson hits the target here, too. Quarterly revenue is up 19.8%. Quarterly earnings are up 125%. And Smith & Wesson has been exceeding analysts' estimates all year.

"But there is still plenty of upside ahead. Severe economic downturns generally increase crime. That causes increased demand by both consumers and police departments for high-quality weapons.

"Today, virtually every major law enforcement and military agency in the world uses Smith & Wesson products. And the company has a 150-year history of reliability.

"The Model 10 firearm, for example, is the only handgun in the world that's been in continuous production since it was introduced in 1899. Incidentally, Smith & Wesson also sells camping, fishing and sporting gear and accessories online and through its distributors.

"In short, the outlook remains promising. And a poor economy won't do anything to change that. Expect sales and earnings to jump at least another 25% in the year ahead. The stock should do considerably better."
 

Willis Lease Finance Corp. (Nasdaq:WLFC), Stewardship Financial Corp. (Nasdaq:SSFN) and BlueLinx Holdings Inc. (Nasdaq:BXC) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Shore Bancshares Inc. (Nasdaq:SHBI), Smith & Wesson Holding Corp. (Nasdaq:SWHC), Flushing Financial Corp. (Nasdaq:FFIC), ArvinMeritor Inc. (Nasdaq:ARM), Tree.com Inc. (Nasdaq:TREE) and Midsouth Bancorp Inc. (Nasdaq:MSL).

Charlotte Russe Holding Inc. (Nasdaq:CHIC), MSC Software Corp. (Nasdaq:MSCS) and Electro-Optical Sciences Inc. (Nasdaq:MELA) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sequenom Inc. (Nasdaq:SQNM), Huron Consulting Group Inc. (Nasdaq:HURN), Biocryst Pharmaceuticals Inc. (Nasdaq:BCRX), Smith & Wesson Holding Corp. (Nasdaq:SWHC), Canadian Solar Inc. (Nasdaq:CSIQ) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR).

DryShips Inc. (Nasdaq:DRYS), AgFeed Industries Inc. (Nasdaq:FEED) and James River Coal Co. (Nasdaq:JRCC) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Electro-Optical Sciences Inc. (Nasdaq:MELA), A Power Energy Generation Systems Ltd. (Nasdaq:APWR), Canadian Solar Inc. (Nasdaq:CSIQ), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and ADC Telecommunications Inc. (Nasdaq:ADCT).

Smith & Wesson Holding Corp. (Nasdaq:SWHC), Wind River Systems Inc. (Nasdaq:WIND) and Noven Pharmaceuticals Inc. (Nasdaq:NOVN) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Centennial Communications Corp. (Nasdaq:CYCL), Century Aluminum Co. (Nasdaq:CENX), Canadian Solar Inc. (Nasdaq:CSIQ), Matrixx Initiatives (Nasdaq:MTXX), GT Solar International Inc. (Nasdaq:SOLR) and Amkor Technology Inc. (Nasdaq:AMKR).

Acura Pharmaceuticals Inc. (Nasdaq:ACUR), Halozyme Therapeutics Inc. (Nasdaq:HALO) and Actuant Corp. (Nasdaq:ATU) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Heritage Financial Group (Nasdaq:HBOS), Pzena Investment Management Inc. (Nasdaq:PZN), Smith & Wesson Holding Corp. (Nasdaq:SWHC), Cytec Industries Inc. (Nasdaq:CYT), Hexcel Corp. (Nasdaq:HXL) and American Dental Partners Inc. (Nasdaq:ADPI).

Halozyme Therapeutics Inc. (Nasdaq:HALO), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and Century Aluminum Co. (Nasdaq:CENX) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: A Power Energy Generation Systems Ltd. (Nasdaq:APWR), Focus Media Holding Ltd. (Nasdaq:FMCN), Acura Pharmaceuticals Inc. (Nasdaq:ACUR), Sterling Construction Co Inc. (Nasdaq:STRL), Sonic Corp. (Nasdaq:SONC) and AgFeed Industries Inc. (Nasdaq:FEED).

Medarex Inc. (Nasdaq:MEDX), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Spectrum Pharmaceuticals Inc.(Nasdaq:SPPI), Century Aluminum Co. (Nasdaq:CENX), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF), Matrixx Initiatives (Nasdaq:MTXX), Focus Media Holding Ltd. (Nasdaq:FMCN) and Monro Muffler Brake Inc. (Nasdaq:MNRO).

Today was options expiration and it made for dull trading. The S&P 500 finished up 2.74 at 921, the Dow Industrials finished down 16.85 at 8,538XXX. The Nasdaq was the strong index, it finished the day up 19.75 at 1,827 on a Goldman Sachs (NYSE:GS) upgrade of Microsoft (Nasdaq:MSFT). 

Oil prices fell below $70. But even better, gasoline futures dropped below $2 after inventory data showed a huge surplus. That suggests prices at the pump may start to head lower.

Large cap oil stocks like Exxon-Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were down in the 1% range, but several micro-cap oil & gas exploration stocks were up. Brigham Exploration (Nasdaq:BEXP) was up 4.36%, Kodiak Oil (AMEX:KOG) was up 7% and Cano Petroleum (AMEX:CFW) was up 3.5%.

The Russell 2000 finished much like its large-cap brethren, with a minimal 3.16 point gain.

Top small cap winners for the day included TerreStar (Nasdaq:TSTR) up 30%, Sealy (NYSE:ZZ) up 20.5% and Smith and Wesson (Nasdaq:SWHC) up 21.9%.

Small cap decliners of note include A-Power Energy (Nasdaq:APWR) down 12%, E*Trade (Nasdaq:ETFC) down 11% and Cost Plus (Nasdaq:CPWM) down 13%.

So now the government is actually going to subsidize car sales with up to $4,500 in incentives for car buyers who get rid of cars that get 18 mpg or less.  

I understand that the auto industry is hurting. And I also get that more efficient cars help reduce our dependence on foreign oil. But is it appropriate to use tax payer dollars to fund auto purchases?  

Perhaps if we were talking about something that is a necessity, like farming, subsidies make some sense. After all, we need farmers. I think we have to consider cars a luxury, or at least a discretionary purchase.  

Not only that, but a car subsidy can only create temporary demand. And given the precipitous drop in car sales (10 million vehicles will be sold this year as opposed to 16 million in 2007), it's highly unlikely any momentum can be created. Not with unemployment on the rise. And not with home values still falling.  

*****Increasing demand based on stimulus spending is a temporary fix. The government is just buying time hoping that the economy will recover. But many of the signs of recovery are based in stimulus spending.  

*****Analysts are now acknowledging that oil has been rallying on a falling dollar and on expectations of price inflation. Of course, the potential for price inflation is, once again, directly related to government stimulus spending.  

The massive amounts of Treasury bonds that have been and will be sold are boosting interest rates and driving the value of the U.S. dollar down. So any asset priced in dollars is rising in price. Like oil. Mind you, that doesn't mean its value is rising, just its price.
 
At some point, higher oil prices will affect the prices of other goods. But as I've noted before, it's likely to be a while before producers are able to raise prices in the current economic environment. Remember, it wasn't until 2007 that inflation really started to become an issue.  

*****Another catalyst for commodity prices in general is supply. Global demand is down, credit has been difficult to get, and miners and producers have not been investing in increasing supply.  

That sets the stage for supply/demand imbalances when economic growth returns.  
We'll be discussing these topics and our bullish outlook for commodity stocks in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6 pm. It's free to attend, you can sign up HERE.  

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, has his latest video chart analysis ready for you. Last Friday, Jason absolutely nailed this week's trading. I hope you find this week's analysis just as useful. Here's the LINK.  

Smith & Wesson Holding Corp. (Nasdaq:SWHC), Solutia Inc. (Nasdaq:SOA) and Famous Daves of America Inc. (Nasdaq:DAVE) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Talbots Inc. (Nasdaq:TLB), SL Industries Inc (Nasdaq:SLI), China Medical Technologies Inc. (Nasdaq:CMED), AFC Enterprises Inc. (Nasdaq:AFCE), Twin Disc Inc. (Nasdaq:TWIN) and Vocus Inc. (Nasdaq:VOCS).

Superior Well Services Inc. (Nasdaq:SWSI), Petroleum Development Corp.(Nasdaq:PETD) and WNS Holdings Ltd. (Nasdaq:WNS) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: ATP Oil & Gas Corporation (Nasdaq:ATPG), Smith & Wesson Holding Corp.(Nasdaq:SWHC), Dycom Industries Inc.(Nasdaq:DY), BPZ Resources Inc.(Nasdaq:BPZ), Layne Christensen Co.(Nasdaq:LAYN) and CTS Corp.(Nasdaq:CTS).

Dendreon Corp. (Nasdaq:DNDN), Take Two Interactive Software Inc. (Nasdaq:TTWO) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: UAL Corp. (Nasdaq:UAUA), Susquehanna Bancshares Inc. (Nasdaq:SNWL), Kirklands Inc. (Nasdaq:KIRK), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and Force Protection Inc. (Nasdaq:FRPT).

Dendreon Corp. (Nasdaq:DNDN), DryShips Inc. (Nasdaq:DRYS) and China Medical Technologies Inc. (Nasdaq:CMED) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: UAL Corp. (Nasdaq:UAUA), Apogee Enterprises Inc. (Nasdaq:APOG), Energy Conversion Devices Inc. (Nasdaq:ENER), China Sky One Medical Inc. (Nasdaq:CSKI), Alkermes Inc. (Nasdaq:ALKS) and Smith & Wesson Holding Corp. (Nasdaq:SWHC).

Smith & Wesson Holding Corp. (Nasdaq:SWHC), Lifeway Foods Inc. (Nasdaq:LWAY) and Starent Networks Corp. (Nasdaq:STAR) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Isramco Inc. (Nasdaq:ISRL), Liberty Media Corp. (Nasdaq:LCAPB), Stamps.com Inc. (Nasdaq:STMP), Franklin Electric Co Inc. (Nasdaq:FELE), Sturm Ruger & Co Inc. (Nasdaq:RGR) and BioSpecifics Technologies Corp. (Nasdaq:BSTC).

Acorda Therapeutics Inc. (Nasdaq:ACOR), GigaMedia Ltd. (Nasdaq:GIGM) and Synaptics Inc. (Nasdaq:SYNA) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Energy Conversion Devices Inc. (Nasdaq:ENER), Allos Therapeutics Inc. (Nasdaq:ALTH), TBS International Ltd. (Nasdaq:TBSI), Smith & Wesson Holding Corp. (Nasdaq:SWHC), China Sky One Medical Inc. (Nasdaq:CSKI) and Cyberonics Inc. (Nasdaq:CYBX).

Energy Conversion Devices Inc. (Nasdaq:ENER), Clean Energy Fuels Corp. (Nasdaq:CLNE) and Palm Inc. (Nasdaq:PALM) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Mellanox Technologies Ltd. (Nasdaq:MLNX), UAL Corp. (Nasdaq:UAUA), ASM International NV (Nasdaq:ASMI), Central European Distribution Corp. (Nasdaq:CEDC), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and Silver Standard Resources Inc. (Nasdaq:SSRI).

Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares. Today’s small-cap gainers are GeoMet (Nasdaq:GMET), Logility, Inc. (Nasdaq:LGTY) and ETEL (Nasdaq:ETEL).

Other Market Watch highlights today included:

•    Financial shares got a lift from a G20 statement over the weekend saying that a coordinated action was needed to fight the global financial crisis.  
•    At 9:54 a.m. ET, the Russell 2000 was up 5.81, or 1.15% at 511.60
•    Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares.
•    Overnight, China shares were up 7.4%, Japan’s Nikkei climbed 5.8%, Hong Kong was up 3.5%, India rallied 5.7%, Australia was up 1.3% and European shares were up about 2% heading toward the U.S. open.  
•    Crude oil prices were up more than $4 a barrel, while copper prices climbed 8% in Asian trading.

Small Cap Gainers:

• GeoMet up 19% ahead of its Q3 earnings release and conference call scheduled for today. See (Nasdaq:GMET).  
• Logility, Inc. up 18% on light volume. See (Nasdaq:LGTY).
• EGS Acquisition Co. commences tender offer to acquire all issued and outstanding common shares and ADSs of eTelecare Global Solutions. Shares of ETEL pop 16%. See (Nasdaq:ETEL).  
• Smith & Wesson up over 16% on no fresh news, lower-than-average volume. See (Nasdaq:SWHC).  


Small Cap Losers:

• GSK, XenoPort to withdraw and resubmit new drug application requesting Solzira approval for restless legs syndrome. XNPT shares dive 17% in pre-market. See (Nasdaq:XNPT).  
• Fuel Tech Inc. reports Q3 results, lowers FY 2008 outlook. Shares drop 9% in pre-market. See (Nasdaq:FTEK).  
• Circuit City files For Chapter 11; shares lose more than half their value, shares plummet 64% in pre-market. See (NYSE:CC).  

Investors shook off any superstitions this Friday the 13, as small-cap stocks rose throughout the session. A drop in oil prices and positive inflation data from the government eased concerns about the effect of surging prices on American consumers. The Russell 2000 (NYSE:IWM) closed up 13.77, or 1.91%, at 733.61.

The Labor Department reported this morning that the consumer price index clocked in at 0.6%, slightly above the forecast. CPI on a year-over-year basis was up 4.2%, which was above the median estimate of 3.9%. However, the “core” rate, which excludes food and energy prices, was in line with expectations and was the portion of the report the market chose to focus on.

“The CPI number didn’t tell us anything we didn’t already know today,” said Andy Busch, foreign exchange strategist for BMO Capital Markets. “When we got the actual number, [people thought] maybe we should take some profits on this. The core number came out pretty tame. Food and energy actually act as a depressant on the other components of CPI because you take away discretionary spending to pay for what would be nondiscretionary payments, and clearly there’s no price pressure on other components of the CPI.”

Busch also says today’s economic report validates the Fed’s stance. “We’ve had the Fed bang the drum about inflation for over two weeks now. … The Fed’s looking beyond the data right now and they’re going to be raising rates,” he said.

In other economic news, the Michigan sentiment survey came in below expectations, slipping to a fresh 28-year low on inflation and rising unemployment concerns.

“It’s extremely negative, but I think there isn’t a close linkage between consumer sentiment and consumer spending — maybe 20%,” Busch said. “I would caution people [against thinking] that they are closely tied. I think they’re more of a coincident indicator—the reason being that people feel bad and stop spending because they’re already experiencing problems with energy and food. It’s already taken away their ability to spend; it’s already cooked in the books. Also, looking back to 2001, after 9/11, consumer sentiment fell off the planet and yet consumer spending . . .

After pushing higher on the opening on this notoriously superstitious day of bad luck, small-cap stocks threw caution to the wind and continued trading in the green midday, as investors focused on positive data within the CPI report and oil pulled back.

At 1:31 p.m. ET, the Russell 2000 (NYSE:IWM) was up 7.6, or 1.06%, at 727.44.

The Labor Department reported this morning that the consumer price index clocked in at 0.6%, slightly above the forecast. CPI on a year-over-year basis was up 4.2%, which was above the median estimate of 3.9%. However, the “core” rate, which excludes food and energy prices, was in line with expectations and was the portion of the report the market chose to focus on.

“The CPI number didn’t tell us anything we didn’t already know today,” said Andy Busch, foreign exchange strategist for BMO Capital Markets. “When we got the actual number, [people thought] maybe we should take some profits on this. The core number came out pretty tame. Food and energy actually act as a depressant on the other components of CPI because you take away discretionary spending to pay for what would be nondiscretionary payments, and clearly there’s no price pressure on other components of the CPI.”

Busch also says today’s economic report validates the Fed’s stance. “We’ve had the Fed bang the drum about inflation for over two weeks now … The Fed’s looking beyond the data right now and they’re going to be raising rates,” he said.

In other economic news, the Michigan sentiment survey came in below expectations, slipping to a fresh 28-year low on inflation and rising unemployment . . .

Small-cap stocks pushed higher on the opening, lifted by a slide in crude oil prices, which extended overnight losses and moved toward $134 dollars a barrel. Equities also were underpinned by tame inflation data this morning. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 7.99, or 1.11%, at 727.82.

The Michigan sentiment survey came in below expectations and notched a fresh 28-year low amid consumer fretting about inflation and rising unemployment. Although the report appears bearish, and even though credit futures edged off lows, the stock market had surprisingly little immediate reaction to the number.

CPI data came out before the regular opening this morning, and although the headline figure was slightly above the forecast at 0.6%, the “core” rate, which excludes food and energy prices, was in line with expectations and the market was able to extend overnight gains after the inflation report was released. CPI on a year-over-year basis was up 4.2%, which was above the median estimate of 3.9%. These numbers might have usually been a little troubling to the stock market, but they weren’t a shock and there is some thought that if inflation remains the focal point for the Federal Reserve, it will speed up the tightening timeline, and therefore boost the dollar. However, there are a lot of hurdles to cross on that line of thinking.

Speaking of the U.S. dollar, the greenback rallied against the euro, gaining more than 100 basis points or about 0.7% and was also at fresh highs versus the yen. The firm dollar tone was a negative early today for commodities and a positive for stocks.

Early this morning, the market digested fresh dour news on the housing front as foreclosures in May were up 48% from last year, and up 7% from April, . . .

Handgun manufacturer Smith & Wesson Holding Corp. (Nasdaq:SWHC) after Thursday’s close posted fiscal fourth quarter earnings that slid from the year-ago period, but still managed to beat the Street.

Although the Springfield, Mass-based firm suspended providing financial guidance in January due to uncertain business and economic environments, the company says it has seen several encouraging signs.

Shares gained 8%, or $0.41, to $5.60 in pre-market trading. For detailed price information and recent news stories about Smith & Wesson, click SWHC.   

Small-cap stocks are expected to open higher as investors digest critical inflation information, while mulling over a mild overnight dip in crude oil prices and a firm tone in the U.S. dollar ahead of consumer sentiment data later this morning. The Russell 2000 (NYSE:IWM) is expected to open right around the 723 mark.

The CPI headline figure came in at 0.6%, just slightly above the forecast for a rise of 0.5%. The “core” figure, which excludes food and energy prices, was in line with expectations at 0.2%. The year-over-year CPI figure was at 4.2%, above the 3.9% forecast. Stock index futures initially pulled back off modest overnight gains immediately after the CPI report was released, but then recovered to grind out new after-hours highs. The Michigan sentiment survey comes out around 10:00 a.m. ET, and could stir volatility for morning stock market trading.

Crude oil futures were off moderately into the stock market opening, hovering near $136 dollars a barrel as the U.S. dollar was at five-week lows against the euro, up about 0.7%, and rose about 0.3% versus the yen to the highest point since mid-February.

Early this morning, the market digested fresh dour news on the housing front as foreclosures in May were up 48% from last year, and up 7% from April, according to RealtyTrac’s U.S. Foreclosure Market Report.

Today marks an important session for small caps from a charting standpoint. A weekly close below 720.50 would suggest an extension of the recent breakdown . . .

Shares of Smith & Wesson Holding Corp. (Nasdaq:SWHC) are lower ahead of the opening bell after the handgun manufacturer said it will offer 6.25 million shares to generate net proceeds of approximately $31.9 million. The company intends to use the proceeds to repay bank debt and for general corporate purposes.

Shares fell 8%, or $0.50, $5.67 ahead of the bell. For detailed price information and recent news stories about Smith & Wesson, click SWHC.

China Precision Steel Inc (Nasdaq:CPSL), China Sunergy Co Ltd (Nasdaq:CSUN) and Pacific Ethanol Inc (Nasdaq:PEIX) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $750 million.

Star Bulk Carriers Corp (Nasdaq:SBLK), Paragon Shipping Inc (Nasdaq:PRGN) and Smith & Wesson Holding Corp (Nasdaq:SWHC) are also among the most actively traded companies.

Here are the most actively traded companies among small caps:

The Russell 2000 (NYSE: IWM) and the Dow have reversed declines from earlier this session, after the Federal Reserve said it will inject liquidity into the market quelling investors’ concerns surrounding the worst jobs report in five years.

At 10:49 a.m. ET, the small-cap index was up 4.63 points, or 0.70%, to 667.41. The Dow Jones Industrial Average (INDU) had advanced 26.46 points, or 0.22%, to 12,066.85.

To ease the latest shocks to the economy, the Federal Reserve said this morning that it will increase the amount of loans it makes to banks. Specifically, the central bank augmented auctions of four-week funds to banks to $50 billion from its original $30 billion planned for March 10 and March 24. The Fed also said it will avail an additional $100 billion through repurchase agreements.

In a statement, Fed officials also stipulated that the central bank will continue auctions for at least six months, and would increase the size of such auctions further if needed.

Before the open, the Labor Department reported that payrolls plunged a more than forecasted 63,000 in the month of February, heightening recession fears and causing gyrations early in the session.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data comes on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

The Russell 2000 (NYSE: IWM) closed in the green following news that Warren Buffet has offered to help bond insurers. The small-cap index advanced 5.73 points, or 0.82%, to 705.48. The Dow Jones Industrial Average (INDU) added 133.40 points, or 1.09%, to 12,373.41.

On a year-to-date basis, the Russell 2000 has declined 7.90%, while the Dow has retreated 6.72% and the S&P 500 has lost 8.14%.

The bulls completely dominated trading today as small-cap stocks opened higher and stayed positive throughout the session following news that billionaire investor Warren Buffett has offered to have his company, Berkshire Hathaway, assume responsibility for $800 billion of municipal bonds guaranteed by bond insurers MBIA Inc. (NYSE: MBI), Ambac Financial Group Inc. (NYSE: ABK) and Financial Guaranty Insurance Co.

There have been concerns recently that the three companies could be downgraded due to write-downs from insuring subprime debt. The bond insurers would welcome relief for their entire portfolio, but Buffett is only offering help for their relatively safe municipal bond holdings.

Nevertheless, investors were in a buying mood, which was also bolstered by news that ailing carmaker General Motors Corp. (NYSE: GM) swung to a fourth-quarter net loss that was not as severe as analysts had forecasted.

Also helping the bulls was news after the start of trading that St. Louis Federal Reserve Bank President William Poole thinks the U.S. economy will likely avoid recession.

Small-cap stocks touched their peak of the session at about 2 p.m. ET before easing to their close level.

Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:

The Russell 2000 (NYSE: IWM) futures are higher but the small-cap index could be weighed down by news of poor housing starts.

The slump in the housing sector has apparently deepened, according to a report by the U.S. Census Bureau that shows a decline in December housing starts.

Housing starts fell 14% to a seasonally adjusted annual rate of 1.006 million units, below November’s downwardly revised total of 1.173 million. Economists were expecting to see a smaller drop to 1.15 million.

What’s worse, the housing sector does not appear to be headed for recovery.

That’s because building permits, a sign of future construction, fell 8.1% to an annual rate of 1.068 million units. Economists were expecting a smaller decline.

In other economic news, investors will be paying attention to U.S. Federal Reserve chairman Ben Bernanke’s congressional testimony. Concerns about the overall state of the economy have increased calls for some sort of response to prevent a recession.

Observers and economists widely expect the Fed to lower its target interest rate when it next meets on Jan. 29 and 30.

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:

• Comtech Group, Inc. (COGO), up 10% on news it has reaffirmed its 2007 guidance due to strong business.
• Smith & Wesson Holding Corp. (SWHC), up 8%.
• Brigham Exploration Co. (BEXP), up 7% on news it has discovered three wells.

Biggest percentage losers:

• Jones Soda Co. (JSDA), down 4% on news of an analyst downgrade.
• Provident Bankshares Corp. (PBKS), down 4% on news of a fourth-quarter loss.
• ANADIGICS, Inc. (ANAD), down 3%.

Smith & Wesson Holding Corp. (Nasdaq: SWHC) shares are rising after Susquehanna Financial Group initiated coverage on the gun maker with a “positive” rating. Analyst Cheryl Cortez said the company’s sales will rise as it releases new products and books more military orders.

"Smith & Wesson has recently launched its bolt-action rifles and has many other products in the pipeline," Cortez wrote in a note to investors. "New products are expected to gain popularity and wide market acceptance on the back of Smith & Wesson's strong brand name."

The Springfield, Mass.-based company recently launched a new line of bolt-action rifles and other new hunting rifles, Cortez said.

At closing, SWHC shares were up 11.84%, or $0.61, at $5.76. Over the last 52 weeks, shares have ranged from $4.79 to $22.80.

The Russell 2000 (NYSE: IWM) ended the day in negative territory on news of economic data confirming a slowdown in growth. The small-cap index fell 1.43 points, or 0.18%, to 785.52. The Dow Jones Industrial Average (INDU) moved up 5.69 points, or 0.04%, to 13,625.58.

On a year-to-date basis, the Russell 2000 is off 0.24%, while the Dow has added 9.23% and the S&P 500 has advanced 6.22%.

Nonfarm payroll employment increased 94,000 in November, the U.S. Labor Department reported. That’s below October’s slightly upwardly revised total of 170,000 but just above economists’ projections.

The employment gains were led by the service sector, while manufacturing and construction shed jobs. Overall, the unemployment rate stayed put at 4.7%.

“Employment is a lagging indicator,” said Arun Raha, vice president of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, in an email. “The November increase in jobs growth, far less than in October, is consistent with slowing growth.”

The same report also showed that average hourly earnings climbed 0.5% to $17.63. That’s an increase of 3.8% from a year earlier, suggesting that the tight labor market is not putting much pressure on wages.

Small-cap stocks opened in the green but fell soon after. Trading was choppy from that point on, with the Russell 2000 index generally staying in the red.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are moving down. At 1:38 p.m. ET, the small-cap index had shed 4 points, or 0.51%, to 782.95. The Dow Jones Industrial Average (INDU) was down 12.03 points, or 0.09%, to 13,607.86.

Job creation is moving along at modest pace, but Americans have become more pessimistic about the economy, according to separate news reports released this morning.

The U.S. Labor Department announced before the start of trading that nonfarm payroll employment increased 94,000 in November. That’s below October’s upwardly revised total of 170,000 but above economists’ projected job growth of 70,000. The decline in job growth is consistent with a slowing economy.

The unemployment rate is unchanged at 4.7%, which translates to 7.2 million workers.

Small-cap stocks opened in the green but fell immediately after. The index hit its lowest point in the morning session at 10 a.m. ET, when the University of Michigan said that preliminary numbers for November’s consumer confidence showed the index is at its lowest level in two years.

The index of consumer sentiment fell to 76.1 in the November, down from 80.9 in October and well below the level of 92.1 in November of 2006.

“Rising prices for fuel and food had a devastating impact on household budgets, and falling home prices have diminished consumers’ sense of financial security,” said survey director Richard Curtin in a statement.

Shares of Smith & Wesson Holding Corp. (Nasdaq: SWHC) are getting hammered today after the handgun maker lowered its outlook for 2008.

Rodman and Renshaw analyst Amit Dayal downgraded the small cap to “market underperform” from “market perform” on the company’s lowered guidance and expectations for a weak consumer firearms market.

For fiscal 2008, which ends in April 2008, the small cap is now projecting net income of $17 million, or $0.40 per share on sales of $300 million based on increased promotional costs, an extended Springfield plant shutdown in December, and the lower absorption rate of overhead costs due to lower production volumes. The new guidance compares with previously forecasted earnings of $23.5 million, or $0.53 per share, and revenues of $325 million.

“This guidance may be slightly aggressive given that we are just at the beginning of the slowdown,” Dayal wrote in a research note today. “In addition, visibility into contract wins from the Military remains unclear. We do not anticipate any material developments on this front to occur in 2008 and will not be surprised if this extends into 2009.”

For 2008, Dayal is forecasting revenues of $281 million and earnings of $0.30 per share. The consensus of seven analysts polled by Thomson Financial is for earnings of $0.52 on revenues of $321.79 million.

Dayal says he believes unfavorable macroeconomic conditions, including high energy prices and the mortgage debacle, will negatively impact the company, as the analyst says the company has become increasingly reliant on the consumer sporting goods market.

After three years of robust growth, Dayal is expecting a slowdown in 2008 in the firearms market.

Dayal has a target price of $4.50 on the stock.

Shares of Smith & Wesson (SWHC) tumbled 28.33%, or $2.81, to $7.11 at 11:30 a.m. ET. Shares of Smith & Wesson have been trading in the range of $9.51 to $22.80 for the past 52 weeks.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are losing ground after the University of Michigan’s Surveys of Consumers hit its lowest level since 1992. December sentiment hit 74.5, below last month’s 76.1. Wall Street economists had predicted December sentiment to hit 75.0.

The Labor Department’s jobs report for November contributed to positive news. For the month of November, non-farm payrolls grew by a better-than-expected 94,000 fueled by growth in the areas of  professional and technical services, health-care and food services, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Economists were projecting jobs to grow by 70,000 from 166,000 jobs created in the month of October. Employment continues to languish in manufacturing and in several housing-related industries, including construction, credit intermediation and real estate.

The unemployment rate held at 4.7% percent, while the average hourly earnings rose by $0.08 over the month, the Labor Department reported as well.

At 10:46 a.m. ET, the small-cap index dropped 3 points, or 0.83%, to 783.95. The Dow dropped 10.48 points, or 0.08%, to 13,609.41.

The Russell 2000 (NYSE: IWM) futures are gaining ground again this morning as investors are cheering the Labor Department’s sanguine jobs report for the month of November.

For the month of November, Nonfarm payrolls grew by a better-than-expected 94,000 fueled by growth in the areas of  professional and technical services, health care and food services, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Economists were projecting jobs to grow by 70,000 from 166,000 jobs created in the month of October.

Employment, however, continued to languish in manufacturing and in several housing-related industries, including construction, credit intermediation and real estate.

The unemployment rate held at 4.7% percent, while the average hourly earnings rose by $0.08 over the month, the Labor Department reported as well.

Separately, investors brushed off downgrades by Merrill Lynch & Co., Inc. (NYSE: MER) to "sell" from "neutral" on American Express Company (NYSE: AXP), Capital One Financial Corp. (NYSE: COF) and Discover Financial Services (NYSE: DFS), noting that “deterioration in consumer credit and spending will continue to undermine the fundamentals of each and lead to share price declines.”

The Russell 2000 (NYSE: IWM) bounced around but eventually posted a modest gain following news of strong U.S. job growth in October. The small-cap index added 2.60 points, or 0.33%, to 797.78. The Dow Jones Industrial Average (INDU) gained 27.23 points, or 0.20%, to 13,595.10.

On a year-to-date basis, the Russell 2000 has increased 1.32%, while the Dow has added 8.98% and the S&P 500 has gained 6.57%.

Labor markets are tight and job growth is stronger than expected, the U.S. Labor Department reported this morning. Non-farm payrolls increased 166,000 in October, more than double the projected rise of 80,000. That’s a sign that the U.S. economy will most likely avoid recession. Payrolls increased a downwardly adjusted increase of 96,000 in September.

The unemployment rate stayed at 4.7%.

“The October employment report showed unexpected strength in the labor market, but largely on account of services,” said Arun Raha, vice president of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, in an email. “However, the overall economy remains tentative given the weakness in the housing market and high energy prices.”

The jobs report also showed that average hourly earnings increased $0.03, or 0.2%, to $17.58 during October. That’s 3.8% above the level a year ago, suggesting that the tight labor market is not pushing up inflation.

Stocks opened with solid gains, but the bullish mood was short-lived as investors turned their attention to an article in The Wall Street Journal that claimed that Merrill Lynch & Co. Inc. (NYSE: MER) has made deals with hedge funds to postpone when it records losses due to bets made on securities backed by subprime mortgages. The New York-based financial services giant may have to write down $10 billion in losses, according to the article.

Vanda Pharmaceuticals Inc. (Nasdaq: VNDA), Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) and Smith & Wesson Holding Corp. (Nasdaq: SWHC) are among the most actively traded companies in Friday pre-market trading among those with market capitalizations under $750 million:

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%.

Origin Agritech Ltd. (Nasdaq: SEED), ClickSoftware Technologies Ltd. (Nasdaq: CKSW) and Buffalo Wild Wings (Nasdaq: BWLD) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $750 million:

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are in the red due to news of poor earnings and concerns that interest rates will not fall. At 1:35 p.m. ET, the small-cap index had shed 2.78 points, or 0.34%, to 818.94. The Dow was off 40.88 points, or 0.29%, to 13,829.38.

Investors hoping for a sizeable drop in the U.S. Federal Reserve’s target interest rate may be disappointed, according to an article in The Wall Street Journal. The paper claims that policy makers, who kicked off their two-day meeting this morning, will likely either cut the federal funds rate 0.25% or leave it unchanged.

That was enough to scare away the bulls, and stocks opened in negative territory.

Contributing to the bearish mood was news that United States Steel Corp.’s (NYSE: X) third-quarter net income missed analysts’ projections by falling 35% due to costs associated with an acquisition.

Cincinnati, Ohio-based consumer goods giant The Procter & Gamble Co. (NYSE: PG) also had bad news to report, saying that its profit margin will come under pressure in the coming months due to higher energy costs.

 

On a Thursday evening earnings call, executives of Smith & Wesson Holding Corp. (NASDAQ: SWHC) increased the company’s guidance for fiscal year 2008. The 155-year-old gun manufacturer boosted its projections for fiscal 2008 to $330 million in revenue, or $0.62 per share, up from the previous guidance of $320 million in revenue, or $0.60 a share.

Wall Street analysts expect $321.3 million in revenue. Sporting goods, law enforcement and international sales will boost the next year’s revenue, CFO John Kelly said on the call.

The company reported revenue of $234.8 million for the fiscal year 2007, a 49% increase over 2006. The results were powered by a 59% increase in pistol sales.

“The year was highlighted by unprecedented sales increases in our traditional pistol and revolver market and it was crowned by our entry into the rifle and shotgun markets through both acquisition and organic growth,” CEO Michael Golden said.

Smith & Wesson is also targeting federal government sales, Golden said. The Senate armed forces committee recently completed the 2008 defense authorization bill, he said. In that bill, Golden said there is a provision that ensures American arms manufacturers will not be excluded from small arms competition for Iraq, Afghanistan, police, security and military forces.

“The federal government represents another significant sales channel and we’re proud to say we won the only four new pistol solicitations that have been generated by the U.S. military over the past two years,” Golden said.

Smith & Wesson did not include federal sales in its 2008 projections, Golden said, because “orders from this channel are not always predictable.” The company is taking the strategy of lobbying politicians, he said.

In 1852, Horace Smith, who honed his skills in the firearms trade while working at the National Armory, and Daniel B. Wesson, a former apprentice to his brother, Edwin Wesson, the leading maker of target pistols and rifles during the 1840s, formed a partnership to market a lever action repeating pistol (to replace the cumbersome muzzle-loaded rifle). After struggling as a fledgling business, the company's products eventually gained prominence. The rest is, as they say, "history."
 
Springfield, Mass.-based Smith & Wesson Holding Corporation (Nasdaq: SWHC), parent company of Smith & Wesson Corp., built its reputation on producing high-quality, high-performance precision handguns. The legendary arms maker has equipped soldiers from the Civil War to Vietnam and the vast majority of American police forces. (Smith & Wesson's .357 Magnum was developed specifically for law enforcement agencies, and the world-famous .38 Special has, at one time or another, been the sidearm of choice for hundreds of police forces around the world.)
 
Known for merging age-old craftsmanship and state-of-the-art technology, Smith & Wesson produces some of the world's most coveted weapons. (It helps that their .44 Magnum was carried by Clint Eastwood's Dirty Harry character.) Smith & Wesson dominated the handgun business in the consumer, law-enforcement and military markets for almost a century.

But by the early 1980s, Smith & Wesson's market share with U.S. police departments dropped to 10% from 98% two decades earlier, as these law enforcement agencies transitioned from issuing revolvers to semi-automatic weapons. This gave the advantage to such high-profile competitors as Italy's Beretta, Austria's Glock and American rival Sig Sauer. By the end of fiscal 2002, Smith & Wesson had a net operating loss of over $5 million.