Tag - Tge

Several small-cap stocks with market capitalizations between $25 million and $2 billion hit new 52-week highs today.

Small-cap stocks shot higher this morning, as the bulls came charging out of the gate when crude oil prices collapsed overnight. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 12.03, or 1.63%, at 751.53.

Crude oil prices fell hard today as Hurricane Gustav hit landfall in Louisiana, but appeared to spare key Gulf of Mexico energy production facilities. At one point ahead of the stock market opening, crude oil prices were down some $9 dollars a barrel, tumbling below $107. If the energy market remains under pressure, then prices at the gasoline pump should fall, which would provide relief to consumers and shift money back toward other expenditures.

The ISM Manufacturing Survey came in at 49.9, which was just a tad above the forecast of 49.6. The market reaction to the data was relatively tame, with trader attention focused more on the commodity arena.

Small caps were pacing the early advance in equities this morning, just slightly outperforming the Dow and topping the S&P 500 by about 0.5%. Speaking of the S&P 500, that index product was testing important resistance along the 1,300 line, which has been a difficult hurdle to jump in recent weeks. Definitive price action above 1,300 could trigger some new money into stocks and prod short-covering from traders who have been successfully shorting rallies in stocks in recent weeks.

The U.S. dollar was in full rally mode this morning, parlaying the collapse in energy prices to higher territory. The greenback stormed to fresh move highs against the euro, climbing 0.9% to the highest point since early February. In addition, the dollar was up about 0.8% versus the yen. The combination of a soaring buck and sinking crude tugged at a host of commodity markets, with gold down 4% and cocoa . . .

Small-cap stocks extended the recent slide Wednesday, as rising crude oil prices, ongoing credit crunch worries and a soft “Beige Book” report on economic activity took a toll. The Russell 2000 (NYSE:IWM) shed 14.74, or 2.01%, to 717.88, the lowest daily close since May 7 and the fourth consecutive close below opening levels, which shows that the bears are winning all the intraday skirmishes lately.

The Russell also closed below the 20-day moving average for the third consecutive session on lower closes, something that has not happened since March. The 20-day moving average is often watched as a short-term trend proxy and the last two times we saw the market below that line three consecutive periods, it presaged a nasty move lower. In addition, late in the day the Russell popped through key chart support at 720.50. Decisive action below that support would suggest a technical breakdown of the recent recovery move, and carries a downside target to 690, which makes action Thursday even more important to gauge the power of this pullback.

Crude oil prices shot $7 dollars a barrel higher Wednesday as the weekly stocks report reflected a drop in U.S. inventories for the fourth consecutive week. Crude oil prices jumped to more than $138 dollars, closing in on last week’s record high that approached $140. Elsewhere in the commodities arena, corn, soybeans and wheat soared up their daily trading limits today amid flooding in the heartland. Corn prices have been making record highs, which means that consumers’ wallets are taking a hit at the gas pump and then again at the grocery store. The iPath GSCI Total Return structured note fund reversed two days of losses to notch new record highs today, reflecting the broad advance in the price of physical goods. The Commodity Research Bureau Index of 19 markets also made new record highs today. A slide in the U.S. dollar also contributed to the rise in crude oil and other commodities, with the greenback down 0.4% against the yen, and off about 0.6% versus the . . .

Small caps are in a steady downward slide as crude oil prices gushed higher, keeping inflation concerns forefront in investors’ minds. At 2:16 p.m. ET, the Russell 2000 (NYSE:IWM) was down 7.96, or 1.09%, at 724.66.

In recent trading, crude oil futures were up to $136.90 a barrel. The U.S. dollar was down against both the yen and the euro.

“Yesterday, the International Energy Agency or IEA said growth in global oil demand is heading toward a six-year low and may go lower with record prices still filtering through the markets,” Andy Busch, foreign exchange strategist for BMO Capital Markets, wrote in an email. “In its monthly oil-market report, they said they see world oil demand growing 0.9%, or 800,000 barrels a day, this year in a market of 86 million barrels a day. Clearly, the higher price for gasoline and diesel is showing up in several places: less petrol tax revenue in France, less fuel sales for retailers in the U.K. (maybe as much as 20% year over year), and less miles driven in the United States (lowest in March since 1979).”

The surging price of oil has prompted Fed Chairman Ben Bernanke to suggest in recent speeches that the Federal Reserve may raise interest rates to combat inflation.

In acquisition news, Staples Inc. (Nasdaq:SPLS) reportedly finalized a deal to purchase Dutch company Corporate Express; any large-cap M&A activity tends to be embraced by the overall stock market.

The weekly MBA mortgage application index rose 10.9% and the purchase index climbed 12.8% to a four-week high. This data series is volatile and has been on the decline in line with the slumping housing market, but the rise in the latest . . .

Agria Corp. (NYSE:GRO), XTENT, Inc. (Nasdaq:XTNT) and Boise Inc. (NYSE:BZ) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Globalstar, Inc. (Nasdaq:GSAT), Columbia Bancorp (Nasdaq:CBBO) and TGC Industries, Inc. (Nasdaq:TGE) are also among the top small-cap percentage losers.

Here are Tuesday's biggest percentage losers among small caps:

Bolt Technology (AMEX: BTJ) shoots the ocean floor with powerful and precise air guns to uncover deep beds of oil. The company’s seismic attacks have pushed it to the pinnacle of the marine gun market, and business is enjoying a surge of ocean exploration.

Incorporated in 1962, Bolt invented the marine air gun in 1963. Thirty years later, the company introduced the long-life marine air gun, which now is the most widely used air gun for marine exploration. Bolt recently added the annular port air gun to its arsenal, which has more output than other guns.

Operating in two business segments—geophysical equipment and industrial products—the company’s fortunes mirror the value of oil. Geophysical equipment, which makes up about 90% of revenue, includes developing and selling seismic energy sources, such as guns, underwater electrical connectors and cables, hydrophones and other industry gear. The industrial products division sells precision pneumatic clutches, brakes and small motors.

Air guns drive the company. The guns thrust waves into the earth that detect variations in underlying rock. Deviations are sent back to ship as reflected energy and the seismic signals are read on board by a hydrophone and analyzed by geoscientists.

Because it’s so costly to drill oil and gas wells, decisions on whether or where to drill are critical. Energy explorers have become increasingly willing to pay higher upfront costs to raise success rates and advanced seismic survey technologies have become a significant exploration risk management tool. Three-D—and even 4-D—techniques are gaining in acceptance; the accuracy and reliability of Bolt’s air guns make them especially valuable for use in these surveys. They are encouraging some customers to retest areas that they’d previously given up on.

TGC Industries, Inc. (AMEX: TGE) are edging down in morning trading after the provider of geophysical services to the gas and oil industry announced a 35% jump in third-quarter revenue that missed expectations. The Plano, Tex.-based company’s revenue for the three months ended Sept. 30 was $24.2 million, below analyst estimates of $22.68 million and compared with $17.95 million a year earlier. The firm’s quarterly profit totaled $1.83 million, or $0.11 per share, below Wall Street projections of $0.12 per share and compared with $1.35 million, or $0.08 per share, during the same period of 2006.

“For the month of July, our revenues and pretax income were negatively impacted by approximately 18% and 62%, respectively, compared to the balance of the third quarter due to continued severe weather conditions,” CEO Wayne Whitener said in a statement. “Over the past several months, we have taken steps to address the continued increase in demand for our land seismic acquisition crews. During the third quarter, we opened a new office in Denver to better serve that market.”

During the third quarter, TGC’s selling, general and administrative expense increased 126% to $1.06 million, from $0.47 million a year earlier.

In morning trading, TGE shares are down 1.45%, or $0.16, at $10.69. Over the last 52 weeks, shares have ranged from $7.25 to $12.55.

Big Oil has been gushing out profits the past few years, as the demand for crude continues to soar without a letup. Smaller oil has tagged along for the ride, including the suppliers of equipment and services to the oil and natural gas industries.

One such small cap is TGC Industries Inc. (Amex: TGE), which helps small to midsize oil and natural gas producers find the hidden pockets of underground riches that just a few years ago might not have been worth pursuing. It has the high-priced equipment and trained crews that can conduct the 3-D seismic surveys needed to tap deep into the earth. In recent years, it has invested heavily in the latest equipment to put the cutting-edge technologies into U.S. oil patches. 

Founded in 1967, TGC Industries is based outside of Dallas in Plano, Texas, with satellite offices in Houston and Oklahoma City. The company provides its services through two operating subsidiaries: Tidelands Geophysical, which gathers data through seismic testing; and Exploration Surveys, which collects and sells North American testing data.

The seismic testing industry remains fairly fragmented, with many smaller, independent competitors to TGC. The one big rival is Dawson Geophysical Co. (Nasdaq: DWSN), which is more than two times the size of TGC.

When BusinessWeek recently came up with its list of the top 100 growth companies, TGC was sitting at No. 3. The Dallas Morning News compiles an annual list of the hottest stocks in that region of Texas, and TGC has been at or near the top in the past few surveys – ranking second on the newspaper’s 2006 “Fast Track” list, which it led in 2004 when its sales doubled, its profits rose 900% and its share price multiplied by 200%. The company was added to the Russell Microcap Index in June 2006.

But what has TGC done for small-cap investors lately? Its 2006 revenue more than doubled, to $67.8 million, while net income increased 31%, to $8.1 million from $6.2 million for all of 2005.