Tag - Vrad

The Russell 2000 (NYSE:IWM) is drifting higher this afternoon, buoyed by a dividend hike at large-cap benchmark IBM and reassuring data out this morning.

At 1:25 pm ET, the Russell is up 1.16%, while the Dow is down 0.04% and the S&P 500 is down 0.07%.

Earlier today consumer confidence data numbers were released, showing a rise of more than 12 points to 39.2, up from a revised 26.9 in March. Analysts were expecting a reading of 29.5. Also out today was more housing data that showed an 18.6% drop in February.

Small caps on the rise today include Virtual Radiologic Corporation (Nasdaq:VRAD), up nearly 30% after announcing first-quarter financial results.

*****I figured Citigroup (NYSE:C) would be asked to raise more cash to insulate it against further losses. But when I read that the Treasury will raise reserve requirements for all 19 banks subjected to the Treasury’s “stress tests,” it suddenly made sense.

As you know, I’ve explored a couple different stress test scenarios. In one, all banks pass the stress tests in order to convince investors that banks are healthy. In another, one or two banks are failed and made examples of, prompting the others to quickly get behind Geithner’s PPIP and dump their toxic assets at reasonable prices.

I’m a little embarrassed that I didn’t see this outcome. After all, Geithner and the Obama administration have made it painfully clear that they prefer to play softball with Wall Street at the taxpayers’ expense. How could I have thought that any bank would be singled out and be made an example?

And I suppose passing all the banks would have been a little obvious. But . . .

Virtual Radiologic Corp. (Nasdaq:VRAD), Heartland Financial USA Inc. (Nasdaq:HTLF) and Meritage Homes Corp. (Nasdaq:MTH) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Destination Maternity Corp. (Nasdaq:DEST), Parexel International Corporation (Nasdaq:PRXL), Hexcel Corp. (Nasdaq:HXL), ev3 Inc. (Nasdaq:EVVV), Quaker Chemical Corp. (Nasdaq:KWR) and Intevac Inc. (Nasdaq:IVAC).

Virtual Radiologic Corp. (Nasdaq:VRAD), BankAtlantic Bancorp Inc. (Nasdaq:BBX) and FirstFed Financial Corp. (Nasdaq:FED) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Cal-Maine Foods Inc. (Nasdaq:CALM), A Power Energy Generation Systems Ltd. (Nasdaq:APWR), James River Coal Co. (Nasdaq:JRCC), Canadian Solar Inc (Nasdaq:CSIQ), Maguire Properties REIT (Nasdaq:MPG) and WuXi PharmaTech Cayman Inc. (Nasdaq:WX).

Here are the biggest percentage losers among small caps:

Small caps have plunged late afternoon after the bailout bill failed to pass in the House overshadowing the Federal Deposit Insurance Corp.’s brokered deal for Citigroup (NYSE:C) to purchase Wachovia’s (NYSE:WB) banking operations.

At 2:07 p.m. ET the Russell 2000 (NYSE:IWM) was down 5%, or 36, to 668. 

The House of Representatives failed to pass the $700 bailout bill, shocking markets and sending the S&P to its lowest level since 1997. After the bill failed, a motion was made for reconsideration of the bill; however attempts to revive it failed. Uncertainty looms around what comes next.

"Right now the market is extremely disappointed,” Andy Busch, global foreign exchange strategist of BMO Capital Markets, said. “It’s a huge embarrassment to both the Democratic and Republican leadership in the U.S. House. This bill shouldn’t have been brought to the floor if they couldn’t have passed it in its current form. I firmly believe that this was the gun to everyone’s head that they needed to see what was out there for the people who voted against it. I believe they will bring back this bill in another form and vote on it again. It’s dead for now…but I think it’s pretty clear they want to get something done because of the disastrous affect it’s had.”

In an attempt to battle the burgeoning credit crisis globally, the Federal Reserve along with the central banks of other countries said they will work together to inject cash into the global financial system to provide relief for debilitated banks. The U.S. central bank has also received authority to pay interest on reserves held by the Fed.

“This should encourage banks to leave funds at the bank while they receive 2%,” Busch said in an email. “This will allow the Fed to expand its balance sheet without forcing Fed Funds to zero. This means they can potentially pump up the liquidity by massive amounts to assist with the credit crunch.”

In the latest chapter of the credit crisis, Citigroup will act as Wachovia’s white knight under the direction of the FDIC and acquire its banking operations. Under the terms of the deal, Citigroup will assume $42 billion in losses and provide the FDIC with $12 billion in preferred stock and warrants, while the FDIC will absorb the remaining losses. The deal also contains a provision that protects Wachovia debtholders. To finance the deal, Citigroup said it will offer $10 billion in stock and cut its quarterly dividend by half to $0.16 per share. The sale follows the Charlotte, N.C.-based bank’s . . .

Virtual Radiologic Corp. (Nasdaq:VRAD) lost more than a quarter of its value this morning after the company announced it expects to report lower-than-expected revenue and earnings per share for 2008.

The Minneapolis, Minn.-based provider of teleradiology services said at 9:00 AM ET it now expects to report earnings per share in the range of $0.46 to $0.52 on revenue of $102 million to $104 million.

Analysts polled by Thomson First Call on average were expecting Virtual Radiologic to report earnings per share of $0.72 on revenue of $109.5 million.

The firm blamed a decline in procedure counts at customer facilities in September for the shift.

By late morning, Virtual Radiologic is at $8.30, down $3.34 from Friday’s close, and hovering close to its 52-week low of $8.25. The stock has traded as high as $24.61 in the past year.

For detailed price information and news stories on Virtual Radiologic, click VRAD.

Small-cap stocks went into rally mode Tuesday, quickly reclaiming lost ground from Monday’s downward spiral as crude oil tanked and consumer sentiment perked up from the abyss. The Russell 2000 (NYSE:IWM) closed up 18.44, or 2.65%, at 714.55, generating the 10th-largest one-day rally of the year. This also marked the fourth one-day gain in July of 2% or more. The only other month this year that saw that many 2% rally days was in March — when the market forged an important bottom.

During the session, crude oil prices shed more than $3 dollars a barrel, retreating below $121 while approaching three-month lows. By the close, crude was off $2.54 dollars to $122.19. Concern about the demand side of the equation continues to discourage energy bulls, and OPEC president Chakib Khelil said that crude oil prices could tumble to the $70- to $80-range if the U.S. dollar strengthens and if political tensions ease in the Middle East. The U.S. dollar jumped to four-week highs against the euro, heating up talk that the short dollar/long energy hedge fund trade was still being unwound. The greenback was on a roll against the yen, rising to four-week highs, while gaining about 0.6%.

The recent collapse in crude oil prices (crude is off some 17% from the July peak) has been a welcome sign to stock market investors who worried that persistent gains in the energy market would have crippled consumer spending and thwarted any recovery attempts in the U.S. economy — especially with the housing market still reeling.

Speaking of the housing situation, the Case-Shiller Home Price Index came out today. To no one’s surprise, the Index slipped to record low levels and suggested that home prices were at four-year lows. However, the report was in line with expectations, the data is for the May time frame, and was completely overshadowed by the consumer confidence report, which came in well above expectations. The headline figure for consumer confidence was at 51.9, which easily topped the analyst forecast of 50. It should be noted that 51.9 is still a low number historically, but with crude oil sinking, the dollar surging and several key economic numbers still on tap this week, a good sentiment figure simply made it even more difficult for the shorts to . . .

Providence Service Corp (Nasdaq:PRSC), PC Connection, Inc (Nasdaq:PCCC) and PLX Technology Inc (Nasdaq:PLXT) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Taylor Capital Group Inc (Nasdaq:TAYC), Virtual Radiologic Corp (Nasdaq:VRAD), Harmonic Inc (Nasdaq:HLIT), Cognex Corp (Nasdaq:CGNX), Zoran Corp (Nasdaq:ZRAN) and Pyramid Oil Co (Nasdaq:PDO).

Here are the biggest percentage losers among small caps:

Small cap stocks pushed higher in Tuesday afternoon, erasing some of Monday’s sizable drop as crude oil prices fell and investors digested a rise in consumer confidence. At 2:14 p.m. ET, the Russell 2000 (NYSE:IWM) was up 15.61, or 2.24%, at 711.72 while the Dow was up 176.60, or 1.59%, to 11,307.68.

The consumer confidence report clocked in at 51.9, which was above the forecast of 50 and which sparked a quick jump in the U.S. dollar while extending the morning rally in equities. Consumer spending makes up more than two-thirds of U.S. economic activity. Earlier this morning, investors reacted tepidly to the Case-Shiller Home Price Index, which slipped at a record pace to minus 15.8% in May.

Crude oil futures were pushing lower this afternoon, which provided some support to the stock market. In recent trading, crude oil fell $2.84 to $121.89 a barrel. OPEC president Chakib Khelil said that current prices for crude were “abnormal” and that prices could fall to $70 to $80 dollars in the long-term picture if the U.S. dollar strengthens and political tensions ease. The greenback was up this afternoon against both the euro and the yen.

Traders will keep a close watch on the financial arena again today following news overnight that Merrill Lynch (NYSE:MER) announced plans to write-down $5.7 billion in debt and raise $8.5 billion in capital through new stock sales. In the afternoon session, MER shares were up some 2%. Also within the financial spectrum, Citigroup (NYSE:C) was the target of negative analyst comments overnight, but is still up 2.75% this afternoon.

Teleradiology service provider Virtual Radiologic Corporation (Nasdaq:VRAD) fell more than 21% to a 52-week low in today’s trading after posting disappointing second-quarter results after Monday’s close. For the quarter ended June 30, revenue was $25.9 million, up from $21.2 million in the year-ago quarter. Adjusted net income was $2.2 million, or $0.13 per share, compared with $1.3 million, or $0.08 per share, for the same period a year earlier. Analysts were looking for $0.15 to $0.17 per share on revenues of $26.8 million, Thomson Financial reported.

Minnetonka, Minn.-based Virtual Radiologic is at $9.81 at 11:57 a.m. ET, down $2.60 from Friday’s close. Just after the opening, the stock fell to a 52-week low of $9.10. Trading volume is at nearly six times the average number of shares.

Small-cap stocks turned a sleepy morning erosion into a full-blown afternoon debacle, as worries about the financial system renewed concerns about any near-term economic recovery and sparked money flow away from equities. The Russell 2000 (NYSE:IWM) closed down 14.23, or 2%, at 696.11.

The trigger for today’s sell-off appeared to be news that FDIC regulators seized two small banks that failed over the weekend, and sold them off to Mutual Omaha Bank. The immediate beneficiary of these systemic financial worries was the Treasury market, with bond and notes lifted by safe-haven flows out of stocks. The yield on the benchmark 10-year note tumbled over 2% as cash 10s rallied.

With nearly one-fourth of the S&P 500 reporting earnings this week, the early-week focus was expected to be squarely on the profit picture, giving the market time to shift into “macro-economic” gear later this week ahead of Friday’s big employment release. However, key earnings numbers were mixed today, and failed to generate enough of a positive story to counter the bank failure news. It should be noted that volume in most financial instruments — stocks, bonds and currencies combined — was light, which suggests some uneven positioning as investors either wait for some of this week’s heavy economic calendar to play out, or as they hold out for more convincing signs of a turn in the earnings news.

Looking ahead to Tuesday’s session, the market gets the first taste of economic data this week, first with the Case Shiller Home Price Index at 9:00 a.m. ET, then from Consumer Confidence data at 10:00. The Case Shiller data is somewhat dated, but the confidence report is for the July time frame.

Crude oil prices were modestly higher throughout the session, which also played into investor concerns about the growth and inflation outlook heading toward all these key economic reports this week. Crude oil futures gained about $1.50 dollars a barrel today, or about 1.2%, pushing close to $125 by the end of the U.S. trading session. Attacks by Nigerian rebels on pipelines lifted energy prices, but concern . . .

FieldPoint Petroleum Corp (Nasdaq:FPP), Pyramid Oil Co (Nasdaq:PDO) and New Oriental Energy & Chemical Corp (Nasdaq:NOEC) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Spire Corp (Nasdaq:SPIR), BMB Munai Inc (Nasdaq:KAZ), Tri-Valley Corp (Nasdaq:TIV), Cascal NV (Nasdaq:HOO), Virtual Radiologic Corp (Nasdaq:VRAD) and Community Partners Bancorp (Nasdaq:CPBC).

Here are the biggest percentage gainers among small caps:

Columbia Bancorp (Nasdaq:CBBO), Optium Corp (Nasdaq:OPTM) and Benihana Inc(Nasdaq:BNHNA) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Adept Technology Inc (Nasdaq:ADEP), Fuel Tech Inc (Nasdaq:FTEK), Cardica Inc (Nasdaq:CRDC), Pamrapo Bancorp (Nasdaq:PBCI), Virtual Radiologic Corp (Nasdaq:VRAD) and Cathay General Bancorp (Nasdaq:CATY).

Here are the biggest percentage losers among small caps:

United Community Banks Inc (Nasdaq:UCBI), Medis Technologies Ltd (Nasdaq:MDTL) and Virtual Radiologic Corp (Nasdaq:VRAD) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $750 million.

UCBH Holdings Inc (Nasdaq:UCBH), Lifetime Brands Inc (Nasdaq:LCUT) and Susser Holdings Corp (Nasdaq:SUSS) are also among the new 52-week lows.

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

Virtual Radiologic Corp (Nasdaq:VRAD), Aldila Inc (Nasdaq:ALDA) and Steak n Shake Company (Nasdaq:SNS) are among the new 52-week lows in Thursday's trading among companies with market capitalizations under $750 million.

HMN Financial Inc (Nasdaq:HMNF), Nexity Financial Corp (Nasdaq:NXTY) and First Regional Bancorp (NYSE:FRGB) are also among the new 52-week lows.

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

Shares of Virtual Radiologic Corp. (Nasdaq:VRAD) are falling following news after the close on Tuesday that it has purchased rival Diagna Radiology for $6 million in cash and an additional $2.2 million in potential earn-out payments to be made over two years.

Minneapolis-based Virtual Radiologic, which provides teleradiology services to radiology practices and medical centers, said that it expects the acquisition to contribute between $3.0 million and $3.5 million in annual revenue during 2008.

At 2:48 p.m. ET, the stock was down $1.00, or 6%, to $16.34.

The following small-cap companies (market capitalizations or values under $750 million) are broadcasting events on Thursday, March 20.

Here are the companies ordered chronologically (all times ET):

"Bad, ugly times are priced into the market," says Jim Oberweis, Jr., editor of The Oberweis Report. The advisor is focused on growth stocks and is known for his Octagon Strategy, which assesses growth stocks based on eight primary metrics, including growth expectations, financial stability and valuation.

Perhaps the most critical of these concerns is that a stock's price-to-earnings multiple not exceed its growth rate. In other words, if the P/E is 30, the stock must be showing 30% annual growth. This steadfast focus on growth at a reasonable  price has led to a top long-term performance record for Oberweis.

"Fear of the future is what drives stocks lower and when the market is near the bottom, it doesn't usually feel like better times lie ahead,” he says. “But when everyone is betting on bad times, even mediocre improvements can lead to powerful rallies."

One sign that adds to Oberweis' current bullishness is the move by Wall Street firms to lay off employees. "Fears have been brought to life by layoffs at Goldman Sachs (NYSE: GS), Merrill Lynch (NYSE: MER), Morgan Stanley (NYSE: MS), Lehman Brothers (NYSE: LEH) and Bear Stearns (NYSE: BSC),” he says.

To be precise, he says, the last time the "Wall Street Man and the Common Man met in line at the unemployment office" was in mid-2002, after the dot-com bust had crushed the investment banks and shaken technology firms alike.”

He says that at that time, the investment industry shrank, confidence sagged and layoffs ensued, but as it turns out, it was a good time to be buying stocks.

To many, a picture is worth a thousand words. For Virtual Radiologic Corporation (Nasdaq: VRAD) and NightHawk Radiology Holdings (Nasdaq: NHWK), two of the nation’s leading diagnostic imaging companies, a picture can be worth a thousand diagnoses.

Diagnostic imaging, which allows doctors to “see” inside a patient’s body using images, is forecasted to grow in volume 15% annually to over 500 million procedures by 2009, according to business research and consulting firm Frost & Sullivan. Although there is increased demand, the number of radiologists is growing only 2% annually, and hospitals and clinics must rely on third-party contractors to supplement their in-house radiology staff and assist with around-the-clock coverage, which is great news for Virtual Radiologic and NightHawk.

Newly public Virtual Radiologic is the second largest U.S. provider of diagnostic imaging services. Its customers include radiology practices, hospitals, clinics and imaging centers. The company employs board-certified radiologists and provides its services nationwide and around-the-clock through a scalable communications network based on an encrypted broadband Internet connection and proprietary workflow management software. Virtual Radiologic currently has 121 radiologists under contract.

Its radiology practice and hospital customers pay the company directly; the small cap doesn’t rely on third party reimbursement. Diagnostic imaging services are provided to 457 customers and 787 medical facilities, including 736 hospitals (13% of all U.S. hospitals). Over the past year, customers under contract have grown 35% and medical facilities served has increased 32%. Same-site volume growth averaged 24% in 2005, 20% in 2006 and 17% in the first nine months of 2007. Contract renewals are high, at 98%. 

Between 2004 and 2006, Virtual Radiologic’s revenues grew more than three-fold to $54 million from $13 million. The company’s revenues grew 127% year-over-year in the first nine months of 2007 and net income (before preferred dividends and redeemable convertible preferred stock accretion) increased to a $2.2 million gain from a $1.8 million loss. The company closed an initial public offering of 4.6 million shares at $17 per share in November. Analysts expect Virtual Radiologic to be profitable in 2008 and to produce 25% annual growth over the next five years. My $22 target for Virtual Radiologic Corporation compares with Tuesday’s closing price of $16.19. Over the last 52 weeks, shares have ranged between $16.04 and $26.97.