Tag - Titn

Small caps dove 5.43% on Wednesday, marking the second-lowest close in five years (both of those closes have taken place within the last three weeks). Today’s small-cap gainers are Carter’s Inc. (NYSE:CRI), Vascular (Nasdaq:VASC) and BGH GP Holdings (NYSE:BGH).

Other Market Watch highlights today include:

• The Russell is now down 33.4% for 2008, while the Dow is off 36.36% and the S&P 500 is down 38%.
• Concerns that consumer spending and a global growth stall will pinch corporate profits even more in the months to come clearly had a negative impact on stocks.
• Commodity firms dominated the list of worst performing sectors today, paced by metal and mining shares, coal stocks, oil and gas drillers, aluminum and gold. 
• The headline news on the commodity front was clearly crude oil, which collapsed 7.5%, or more than $5 a barrel and is now back below $67 — down some 54% from the summer peak.
• Other sectors taking a body blow today included motorcycle manufacturers, restaurants, tobacco companies and internet retail stocks.
• The slide in commodities was reflected by a huge decline in the Commodity Research Bureau Index, which tumbled 4.5% to the lowest point since August 2004.

Small Cap Gainers:

• Children's apparel market Carter's Inc. raised to "buy" from "hold;" reports solid Q3 results. Shares closed up over 13%. See (NYSE:CRI).
• Vascular jumped 15% after Q3 EPS beat the Street by 57%, as the . . .

Small-cap stocks cascaded lower Wednesday as a spree of soft earnings reports and a dreary outlook as the economy veers into recession took a toll on the market. The Russell 2000 (NYSE:IWM) closed down 28.85, or 5.43% at 501.97. This was the second-lowest close in five years, and both of those closes have taken place within the last three weeks. This also marked the fifth-largest one-day decline of the year. The Russell is now down 33.4% for 2008, while the Dow is off 36.36% and the S&P 500 is down 38%. Although the Russell and Dow averted sinking to fresh closing lows for the bear market collapse, the S&P 500 and Nasdaq 100 did set new closing lows.

Although there were isolated upside earnings surprises as the market digests a flood of key reports this week, the overriding investor sentiment right now is that the results are relatively soft and were already watered down to begin with (from an expectation standpoint). What’s more, concerns that consumer spending and a global growth stall will pinch corporate profits even more in the months to come clearly had a negative impact on stocks. Even the companies with solid profits were wary of the operating environment heading into 2009. Even McDonald’s Corp. (NYSE:MCD) — which by most accounts posted impressive results — was unable to post a positive close for the day.

Another theme that remained at play was the wipeout in commodity valuation and the impact that had on stocks with commodity themes. Commodity firms dominated the list of worst performing sectors today, paced by metal and mining shares, coal stocks, oil and gas drillers, aluminum and gold. Other sectors taking a body blow today included motorcycle manufacturers, restaurants, tobacco companies and internet retail stocks. On a depressing side note, there wasn’t even one broad S&P sector group in the plus column late this afternoon.

The slide in commodities was reflected by a huge decline in the Commodity Research Bureau Index, which tumbled 4.5% to the lowest point since August . . .

Small-cap stocks took a dive on the opening, pulled down by fears about the economy, which overshadowed the Senate’s approval of the financial rescue plan last night. At 9:58 a.m. ET, the Russell 2000 (NYSE:IWM) was down 10.67, or 1.59%, at 660.92.

Concerns about the economy were stoked Wednesday when manufacturing data slipped into recession-like levels on the ISM Manufacturing Survey and as the bottom completely fell out on vehicle sales. Then, when weekly unemployment claims soared this morning, it only added to the gloom.

The weekly claims headline figure came in at 497,000, which was way above the consensus projection of 468,000. Claims were at the highest point since September 2001 and the four-week moving average was at the highest since October 2001. The continuing claims figure was also at five-year highs, setting the stage for a potential bearish surprise on the big monthly jobs report Friday morning.

The Senate approval vote was 74 to 25 and the House is widely expected to approve the rescue plan Friday, after shocking the world last week by giving the Wall Street bailout a thumbs down. This time around, a lame duck President with one of the worst approval ratings in history sent a message to the House that this rescue plan isn’t just a free ticket for investment bankers, saying it was “essential to the financial security of every American.” The newest Senate-tweaked version of Treasury Secretary Henry Paulson’s $700 billion bailout includes tax cut provisions and extended FDIC protection of bank deposits, which should be enough of a sweetener to get House Republicans to provide a nod of approval after the previous plan was narrowly defeated 228 to 205. A simple majority is required for the bill to pass the House, then move on the President for signing.

Around the world, stock markets were mixed despite the Senate’s approval, with Europe shares on the rise, while Asian equities were mixed. Swiss banking giant UBS says they will post a small profit for the quarter, which sparked a rally . . .

Shares of Titan Machinery Inc. (Nasdaq:TITN) got a jolt in morning trading after the agriculture and construction equipment store operator reported fiscal first-quarter results pre-bell that trumped the consensus on Wall Street. The Fargo, N.D.-based firm also raised its full year revenue and net income outlook on account of recent financial performance and its customers’ annual production cycles.

Shares gained 9.5%, or $2.65, to $30.55 in late morning trading. For detailed price information and recent news stories about Titan Machinery, click TITN.

Hanger Orthopedic Group Inc (Nasdaq:HGR), Titan Machinery Inc (Nasdaq:TITN) and Pioneer Southwest Energy Partners LP (Nasdaq:PSE) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

Intevac, Inc. (Nasdaq:IVAC), Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB) and LCA-Vision Inc. (Nasdaq:LCAV) are among the most actively traded companies in Tuesday's pre-market trading among those with market capitalizations under $750 million.

Titan Machinery Inc. (Nasdaq:TITN), Origin Agritech Ltd. (Nasdaq:SEED) and eFuture Information Technology Inc. (Nasdaq:EFUT) are also among the most actively traded small-cap companies in pre-market trading.

Here are the most actively traded small-cap companies in Tuesday's pre-market trading:

Raining Data Corp. (Nasdaq:RDTA), Vaalco Energy, Inc. (NYSE:EGY) and Titan Machinery Inc. (Nasdaq:TITN) were among the new 52-week highs established during Friday's trading among companies with market capitalizations or values under $750 million.

Gencor Industries, Inc. (Nasdaq:GENC), InsWeb Corp. (Nasdaq:INSW) and Clayton Williams Energy, Inc. (Nasdaq:CWEI) were also among the 52-week small-cap highs.

Here are Friday's 52-week small-cap highs:

www.titanmachinery.com
Nasdaq: TITN
Priced Dec. 5, 2007
$51.0 million proceeds
$99.2 million post-money valuation

It’s too late for the IPO; the deal was priced in December. That was back when IPOs could get priced. Given the paucity of offerings in the current market, it seems like a good time to look at what companies have been able to go public, and Titan Machinery has the honor of being the top IPO in terms of aftermarket performance in the last six months. The stock has more than doubled since the deal closed on Dec. 5 and now has a market capitalization of $258 million.

This high flier operates in a grounded industry. It’s a chain of farm-equipment dealerships headquartered in Fargo, N.D. Titan represents agricultural and construction machinery made by CNH Global (NYSE: CNH), sold under the Case and New Holland brands. Its 39 stores are in North Dakota, South Dakota, Minnesota and Iowa. Hence, most investors could go through life without ever seeing one of Titan’s operations. The company’s customers, however, have come to see it as a reliable source for the parts and equipment they need to keep their own businesses operating.

Because demand for its lines is more or less fixed, Titan’s plan is to grow through acquisition. Most of its competitors are small, operating only one or two stores, and in some cases, the owners are interested in retiring and don’t have family members who want to take over. Since the IPO, Titan acquired Ceres Equipment, a Case-New Holland dealer in Roseau, Minn., that should add $11 million in revenue. Once a business is acquired, Titan can grow profits by standardizing processes, getting volume discounts on its inventory, and advertising more efficiently.

Titan Machinery Inc. (Nasdaq: TITN) has miles to sow before it sleeps. Cows and chickens and pigs need to be fattened, bread needs baking and the agro-fuel alliance keeps raiding the silo. Titan is doing its part: it has planters, combines, tractors, sprayers and, oh, one more way to profit from the boom in agriculture.

As one of the country’s largest dealers of new and used agricultural equipment, Titan owns 38 retail stores and two outlets in North Dakota, South Dakota, Minnesota and Iowa. Headquartered in Fargo, N.D., Titan’s sales are dominated by equipment from Case IH Agriculture and New Holland Agriculture; about 85% of revenue comes from agriculture, with the rest from construction equipment.

After 27 years in the business, Titan went public in December. Quite an auspicious outing: share prices have more than doubled since. That’s no mystery, considering record 2007 net farm income. Exports were up, helped by the weak dollar, and year-end stocks of key commodities were low. For 2008, USDA expects net income to rise 4.1% to $92.3 billion — 51% above the 10-year average. In all, it should be an exceptional year for producers, particularly those of corn, soybeans and wheat, the primal elements of the Midwest.

Acquisitions have helped as well. Titan in January bought Avoca Implement and Greenfield Implement, two Case IH farm equipment dealerships in southwest Iowa. In February, Titan acquired Ceres Equipment Inc., a farm equipment dealer of Case IH and New Holland brands in Roseau, Minn.

The purchase of Ceres continues management’s focus on gradually expanding its served area, said analyst Robert McCarthy at Robert W. Baird & Co. in a research note this month. “Titan’s ample balance sheet capacity can support considerable further acquisition activity.”

McCarthy estimated that Titan had a cash balance of $36 million at the end of fiscal 2008, on Jan. 31. He continued to recommend purchase, maintaining his initial “outperform” rating made in January and his $26 price target. Baird & Co. co-managed Titan’s IPO.

The Russell 2000 (NYSE: IWM) futures have risen sharply and the small-cap index will likely open higher.

With no major economic releases scheduled for today, investors are focused on news from the corporate sector.

Bullish news came out of IT giant International Business Machines Corp. (NYSE: IBM), which reported better-than-expected preliminary quarterly results this morning. The Armonk, New York-based company said that it expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above Wall Street’s consensus estimate of $2.60 per share.

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:

• A.S.V., Inc. (ASVI), up 44% on news it is being purchased by Terex Corp. (TEX) for about $488 million.
• DRDGOLD Ltd. (DROOY), up 14%.
• Titan Machinery Inc. (TITN), up 10%.

Biggest percentage losers:

• AspenBio Pharma, Inc. (APPY), down 5%.
• Netscout Systems, Inc. (NTCT), down 3%.
• Steven Madden, Ltd. (SHOO), down 1%.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices fell today on more financial problems and fears of a consumer slowdown. The small-cap index dropped 15.56 points, or 2.16%, to 704.65. The Dow Jones Industrial Average (INDU) retreated 246.79 points, or 1.92%, to 12,606.30.

On a year-to-date basis, the Russell 2000 has lost 8.01%, while the Dow is off 4.96% and the S&P 500 has shed 4.59%.

The bears were in the driver’s seat today as news of more pain at major financial firms sparked worries that the subprime mortgage mess could take its toll on the American consumer.

Small-cap stocks opened with a drop and never looked up on news that Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, may incur $15 billion in losses from investments in securities backed by mortgage loans.

Mortgage lenders nationwide frequently packaged loans and sold them as securities to financial companies, and as a result both parties have suffered billions in losses as U.S. home prices started to stagnate in the second half of 2006 and many borrowers defaulted on their loans and went into foreclosure.

Adding to the gloom was New York-based credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

MTC Technologies Inc. (Nasdaq: MTCT), Titan Machinery, Inc. (Nasdaq: TITN) and Xerium Technologies Inc. (NYSE: XRM) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers: