Tag - Ta

Rogers Corp (Nasdaq:ROG), Travel Centers of America (Nasdaq:TA), Azz Inc (Nasdaq:) and UQM Technologies(Nasdaq:UQM) are among the biggest percentage losers in day's trading among companies with market capitalizations under $1 billion.

As of 2:00 p.m. Eastern Time press time, stocks in the Dow and S&P 500 were trading up, while the Nasdaq was slightly down. The Dow was trading at 9,550, up 10 points; the S&P 500 at 1,028, up 0.27 points; and the Nasdaq was down 0.80 points, trading at 2,023.

The Russell 2000, an index of the leading small-cap stocks, was down 1.32 points at 582.

Declines lead advances across all three major exchanges at a ratio of about 5 ½ to 4.

Leading small-cap price gainers trading over 1 million shares include Vonage (NYSE:VG), up 37%; Nymox Pharmaceutical Corp. (Nasdaq:NYMX), up 29%; TravelCenters of America (Amex:TA), up 30%; and Trident Microsystems (Nasdaq:TRID), up 18%.

Vonage saw shares surge on growing consensus that the company would survive the recession. One of the first firms to offer Internet-based calling services, Vonage has been challenged with high costs and competition from telephone and cable operators have increasing begun offering bundled services of video, Internet and phone services.

Shares of Vonage are up over 400% since Monday's open.

*****Yesterday, I mentioned that I thought the Cash for Clunkers was a pretty decent idea, as far as stimulus plans go. Rather than simply hand the automakers cash, the government came up with the Cash for Clunkers program that not only got some desperately needed extra cash in the automakers pockets and also took a few low-MPG cars off the streets. It also put cash into the hands of car dealers who have been struggling and a small percentage of that money into local economies.

Of course, the Cash for Clunker program ended Monday. But it occurred to me last night that the rally we've enjoyed since March could well be called the Cash for Clunker Stock rally…

*****There's no way the government can simply replace the wealth that was lost during the financial crisis. Not only would it have to absorb the banks losses, the government would have to reimburse investors for their investment losses and put around 3 million people on its payroll.

No, America must earn its way back to prosperity. And the government has created an environment where many companies can do just that. For banks, accounting rules were changed so that what once was a loss can now be treated as an asset. Without these rule changes, Bank of America (NYSE:BAC) and Citigroup (NYSE:C) would still be clunkers.

Credit card companies have been allowed to jack fees for even their best customers. Government backed efforts to modify mortgages has slowed the foreclosure rate dramatically, and the lag time of foreclosed homes coming to market has allowed prices to stabilize in many areas.

Government guarantees fixed the money markets. And the weak U.S. dollar has put a floor under oil and commodity stocks, even as demand has fallen steadily. (Note: if you're interested in how a continually weak dollar and coming inflation are fuelling a commodities boom and enriching investors, CLICK HERE.)

Amazingly, banks even rejected one of the sweetest Cash for Clunker Stock programs - TARP. TARP would have actually given banks money for their toxic mortgage assets. Imagine that!

*****The Cash for Clunker Stock program has also returned a lot of wealth that Americans lost in the stock market. The government has bent over backward to make it possible for companies to start earning their way out of the hole, and investors are enjoying much improved brokerage reports.

It's no coincidence that some of the best gains during this rally have been achieved by some of the biggest clunker stocks. Bank of America has rallied from a low of $2.53 to $17.75, a 601% move. Citigroup has run from $0.97 to $4.90, a 405% move.

Heck, even walking dead, ward of the state companies Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) have doubled in the last week. Doubled! These two stocks have virtually no purpose except to provide a buyer of last resort for mortgages and make token payments on government loans. And investors are acting like these two companies are actually good investments!

*****Case in point, on Monday and Tuesday this week, Reuters reports that these four stocks - Bank of America, Citigroup, Fannie and Freddie - accounted for 40% of the trading volume at the New York Stock Exchange.

One commentator said, "No one is buying them based on their fundamentals, they're buying based on what the government might do keep them alive."

Yes that's what's moving the stock market these days - the firm understanding that the government has removed risk from even the clunkiest of clunkers.

Reuters is also reporting that short interest for Bank of America is up 28% in August to 118 million shares and at Citigroup, the short position is up 82% to 624 million shares. Makes sense, but I'm not sure I want to take that bet. At least, not until I know the Cash for Clunker Stock program is over.

Until tomorrow,

Ian Wyatt
Editor
Small Cap Investor Daily

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

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

The Russell 2000 (NYSE: IWM) and the other major U.S. indices declined in the final minutes of trading as investors got nervous ahead Thursday’s inflation data. The small-cap index lost 6.72 points, or 0.85%, to 782.43. The Dow Jones Industrial Average (INDU) fell 83.16 points, or 0.62%, to 13,223.93.

On a year-to-date basis, the Russell 2000 has retreated 0.63%, while the Dow has risen 6.01% and the S&P 500 has added 3.81%.

Stocks began the day little changed on news that U.S. retail sales growth slowed to 0.2% in October, following an upwardly revised increase of 0.7% in September. The result was in line with economists’ projections but indicates that consumers have become a little more reluctant to spend money due to declining home values and higher gasoline prices.

Most economists expect that fourth-quarter economic growth will shift into lower gear. Consumption is about 70% of gross domestic product.

News on the inflation front was rosier. The U.S. Labor Department reported that the producer price index added a miniscule 0.1% in October, after a jump of 1.1% in September. The core index, which excludes food and energy, stayed put after rising 0.1% the previous month.

Economists were expecting both measurements to rise 0.2%. Producer prices measure the average changes in prices received by domestic producers for their output.

Small-cap stocks moved up out of the gate but then moderated and generally stayed just below the closing level today, while the Dow was trending higher. But the bulls lost their footing within minutes of the closing, when investors apparently adopted a cautious posture ahead of Thursday’s inflation data.

The Labor Department is expected to report that the consumer price index for October increased 0.3%, the same as in October. A higher-than-expected jump in prices will most likely rule out the U.S. Federal Reserve cutting its target interest rate during the remainder of 2007.

Small-cap stocks jumped nearly 3% today, propelled by surprise earnings from Wal-Mart and an easing of credit fears. The Russell 2000 (NYSE: IWM) added 22.06 points, or 2.88%, to 789.15, snapping a two-day losing streak. The Dow Jones Industrial Average (INDU) gained 319.54 points, or 2.46%, to 13,307.09, its first rise in four sessions.

On a year-to-date basis, the Russell 2000 has advanced 0.22%, while the Dow has risen 6.67% and the S&P 500 has added 4.55%.

Trading got off to a bullish start this morning on news that Wal-Mart Stores Inc. (NYSE: WMT) saw a 7.9% increase in third-quarter profit at its U.S. stores, while revenue rose 8.9%.

The result pleasantly surprised analysts and eased fears that the U.S. consumer was cutting back on spending. Americans do about 10% of their shopping at the Bentonville, Ark.-based retailer, which began offering discounts two weeks earlier than last year to lure customers.

Stocks were gaining momentum, with the Russell 2000 adding more than 1% within the first 30 minutes of trading.

The bears had no chance, even after Bank of America Corp. (NYSE: BAC) said that it projects a fourth-quarter pre-tax charge of $3 billion due to its purchase of collateralized debt obligations that have plummeted in value because of the stagnating U.S. housing market. Collateralized debt obligations are loans—such as mortgages—that are pooled together and sold to institutional investors as a package.

The Russell 2000 (NYSE: IWM) is posting gains this afternoon as investors respond to better-than-expected earnings from Wal-Mart and a drop in the price of oil. At 2:17 p.m. ET, the small-cap index had advanced 14.25 points, or 1.86%, to 781.34. The Dow Jones Industrial Average (INDU) was up 223.54 points, or 1.72%, to 13,211.09.

Futures were higher and the day began on a bullish note following news that Wal-Mart Stores Inc. (NYSE: WMT) reported a 7.9% increase in third-quarter profit at its U.S. stores, while revenue rose 8.9%. The increase was primarily due to discounts that began two weeks earlier than last year.

The result pleasantly surprised analysts and eased fears that the U.S. consumer was cutting back on spending. Americans do about 10 percent of their shopping at the Bentonville, Ark.-based retailer.

Stocks’ upward trajectory was not affected by news that Bank of America Corp. (NYSE: BAC) is projecting a fourth-quarter pre-tax charge of $3 billion due to its purchase of collateralized debt obligations. Like many other financial actors, the second largest bank in the United States is taking a hit from fallout of the stagnation in the housing market.

Shares of truck stop operator TravelCenters of America LLC (AMEX: TA) have shifted into reverse and hit a new 52-week low on news before the start of trading of a third-quarter loss.

The net loss for the three months ended Sept. 30 was $21.6 million, or $1.56 per share, while seven analysts polled by Thomson Financial were expecting a narrower net loss of $0.02 per share. A year ago the Westlake, Ohio-based company had a profit of $14 million, or $1.84 per share.

Revenues increased 37% to $1.78 billion from $1.3 billion a year earlier, but still missed Wall Street’s projections of $1.88 billion.

The third quarter was the first since the acquisition of El Paso, Texas-based travel plaza chain Petro Shopping Centers on May 30. The purchase required TravelCenters of America to eliminate duplicating positions within its corporate office, resulting in the termination of 32 employees. The company said that it will continue the process of consolidation into 2008 and expects to eliminate a total of 60 positions.

With 234 sites nationwide as of Sept. 30, 69 of which are operated under the “Petro” name, TravelCenters of America is the largest full-service company serving professional drivers in the United States.

At 11:59 a.m. ET, shares of TravelCenters of America (TA) had retreated $3.53, or 15%, to $20.22. The previous 52-week low was $22.16, set on Nov. 12. The 52-week high of $47.41 was reached on June 15.

The Russell 2000 (NYSE: IWM) is posting solid gains following news that Wal-Mart reported a rise in its third-quarter financials.

At 10:20 a.m. ET, the small-cap index had added 9.28 points, or 1.21%, to 776.37. The Dow Jones Industrial Average (INDU) was up 121.93 points, or 0.94%, to 13,109.48.

The bulls are back in action following news before the start of trading that Wal-Mart Stores Inc. (NYSE: WMT) reported a 7.9% increase in third-quarter profit at its U.S. stores, while revenue rose 8.9%.

The Bentonville, Ark.-based company, the world’s largest retailer, had a profit of $2.86 billion, or $0.70 per share, compared with $2.65 billion, or $0.63 per share, a year ago. That’s above Wall Street’s expected earnings of $0.67 per share and on revenue of $91.67 billion.

Wal-Mart also improved its fiscal 2008 earnings guidance.

Meanwhile, home improvement retailer The Home Depot Inc. (NYSE: HD) announced a 27% drop in its third-quarter earnings, reflecting the ongoing stagnation in the U.S. housing market.

Overseas, London’s FTSE 100 index slipped 0.1%, while Tokyo’s Nikkei 225 index surrendered 0.5%.

No major economic releases are scheduled for today.

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

Biggest percentage gainers:

• US BioEnergy Corp. (USBE), up 13% on news of a rise in third-quarter profit.
• BIDZ.com (BIDZ), up 15% on news of a rise in third-quarter profit.
• School Specialty Inc. (SCHS), up 12% on news of a rise in fiscal second-quarter profit.

Biggest percentage losers:

• TravelCenters of America LLC. (TA), down 17% on news it swung to a third-quarter loss.
• Regeneration Technologies Inc. (RTIX) down 12% on news it has purchased Tutogen Medical Inc. (TTG) for $263 million.

The Russell 2000 index and the Dow are in positive territory following news that U.S. personal incomes and consumer spending both grew in May, albeit less than expected.

At 10:08 a.m. ET the Russell 2000 had added 5.84 points, or 0.70 percent, to 844.87. Dow Jones Industrial Average was up 90.96 points, or 0.68 percent, to 13,513.24.

Personal income rose at a rate of 0.5% in May, the U.S. Commerce Department said before the opening. Economists were looking for a rise of 0.6%. Personal income fell 0.2% in April.

Consumer spending added 0.5% in May, below the forecast rise of 0.7%.

Investors’ upbeat attitude is probably mostly due to news that the price index for personal consumption expenditures, a key inflation indicator, rose just 0.5% in May. The so-called “core” index, which excludes food and energy, added a miniscule 0.1% in May, and only 1.9% from a year earlier.

Shares in The Aristotle Corp. (Nasdaq: ARTL) are up over 11% despite news after Wednesday’s close that the Stamford, Conn.-based company’s CFO and Vice President Dean Johnson intends to sell 13,000 shares before June 16, according to an SEC filing.

TravelCenters of America LLC (AMEX: TA) shares are up more than 8% following the announcement before the start of trading Thursday that Volvo Trucks (Nasdaq: VOLV) sold the Westlake, Ohio-based truck stop operator its 28.86% interest in Petro Stopping Centers. TravelCenters now has a controlling interest in Petro. Petro owns and operates 44 travel centers, franchises 24 and operates one travel center as a joint venture. TravelCenters operates 164 travel centers.

Shares in USA Technologies, Inc. (Nasdaq: USAT) are up more than 10% following an announcement Thursday before trading that Coca-Cola will buy USA’s e-Port wireless non-cash technology for use in vending machines. According to an SEC filing, USA will receive 5% of the cashless revenues and a monthly $9.95 fee per unit for each vending machine using USA’s technology. The Malvern, Penn.-based company said it expects up to 7,500 e-Ports to be installed by August 31.

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