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		<title>SmallCapInvestor.com: Small Cap Spotlight</title>
		<link>http://www.smallcapinvestor.com/stockresearch/spotlight</link>
		<description>Read SmallCapInvestor's expert stock market tips and analyst's reports on small cap stocks. Our daily stock market articles provide insight into small cap companies and opportunities.</description>
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		<pubDate>Tue, 04 Nov 08 06:20:28 -0500</pubDate>
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			<title>SmallCapInvestor.com: Small Cap Spotlight</title>
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			<title>Unifi: The fabric of life</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-11-04-unifi_the_fabric_of_life</link>
			<description><![CDATA[Love that new car smell? Or how that sofa cradles your body just so? Or what about that water resistant jacket you practically live in during rainy season?&nbsp; <br /> <br /> Such comforts in life are the life&rsquo;s work of fabric makers such as <strong>Unifi Inc.</strong> (NYSE:<a href="">UFI</a>). The Greensboro, N.C.-based small cap prides itself on providing a diversified line of polyester and nylon textured yarns and related raw materials that are both consumer-friendly and environmentally conscious.<br /> <br /> With about 16 brands being distributed among eight global industries, Unifi has positioned itself to endure market fluctuations such as recent rises in raw materials and operating costs as well as general economic slumps.<br /> <br /> In its latest earnings report on Oct. 30, Unifi said it narrowed its fiscal first-quarter net loss by 93% to $0.68 million, or $0.01 a share, while net sales decreased less than 1% to $169 million. <br /> <br /> &ldquo;During the quarter, volume started out ahead of plan but softened in September as the economy weakened,&rdquo; Ron Smith, Unifi&rsquo;s chief financial officer, said in a statement. &ldquo;We are reacting quickly and decisively to an uncertain market caused by the economic slowdown and significant fluctuations in our raw material prices. This price volatility, combined with softening volumes, will have a negative impact on our conversion margin in the December quarter, but we expect to see improvement as we move into the second half of our fiscal year.&rdquo; <br /> <br /> Recent declines in home and auto sales have impacted Unifi&rsquo;s volume in those segments and are expected to continue at least through the end of the year. And, while president and CEO Bill Jasper acknowledged the immediate obstacles ahead, he . . .]]></description>
			<pubDate>Tue, 04 Nov 08 06:20:28 -0500</pubDate>
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			<title>PetMed Express: Begging for attention</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-11-03-petmed_express_begging_for_attention</link>
			<description><![CDATA[Talk about an industry with a thick, warm coat: the pet business is shaking off the chill of the economy as owners, er, guardians cut back on everything but their little rascals&rsquo; well-being. And that&rsquo;s good news for <strong>PetMed Express, Inc.</strong> (Nasdaq:<a href="">PETS</a>), which mails health products directly to the doggy door. <br /> <br /> Let your own teeth rot and your broken toes mend on their own. But get your baby (no, not that one, the furry one) those drops for fleas, medicine to stave off heartworm and vitamins so he can grow to be like Rin-Tin-Tin. Freshen his breath, perfume him and swab out his ears. Who cares if the market is at the end of its leash when you&rsquo;ve got a bouncing bundle of joy at the end of yours?<br /> <br /> These are the attitudes behind PetMed Express&rsquo;s success. In its current fiscal 2009 second quarter through September, the Pompano Beach, Florida, company raised earnings per diluted share 33% to $0.25, from $0.18 in the same quarter the previous year. Net revenue in the period was $59.6 million, up from $51.5 million a year earlier, an increase of 16%. PetMed Express also repurchased about 90,000 shares of outstanding stock for $1.1 million in the second quarter.&nbsp;&nbsp; <br /> <br /> The leading pet pharmacy company is now focused on adding market share and improving reorders. Started in 1996, it delivers prescription and non-prescription pet medications and other health products for dogs, cats, and horses direct to buyers via an 800 number and through the Internet.&nbsp; <br /> <br /> The market is full of opportunity: The American Pet Products Manufacturers Association says spending in 2007 topped $41 billion, more than twice the $21 billion spent in 1996. For 2008, the association early this year projected the market at a record $43.4 billion. The pet medication market that PetMed Express competes in is estimated near $3.4 billion, with veterinarians holding the majority of market share. The dog and . . .]]></description>
			<pubDate>Mon, 03 Nov 08 06:20:10 -0500</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-11-03-petmed_express_begging_for_attention#12579</guid>
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			<title>Allegiant Travel: Take the A Plane</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-31-allegiant_travel_take_the_a_plane</link>
			<description><![CDATA[<p>As an airline company in a small-market niche, <strong>Allegiant Travel Co.</strong> (Nasdaq:<a href="">ALGT</a>) is profiting as others suffer the industry&rsquo;s woes. Through a focus on managing capacity, Allegiant is spreading its wings despite a rough economy and high jet fuel costs. </p> <p>Based in Las Vegas, Nevada, Allegiant specializes in linking passengers from small cities to leisure spots in the United States. It serves 68 cities on 113 routes, having added 19 new routes since August. Allegiant sells stand-alone air travel or ties packages together with hotel rooms, rental cars and other travel-related services.</p> <p>Allegiant is eliminating competitors like a B-52 shooting down a flock of whirlybirds. In 2007, rivals competed on nine routes; now, that number should be one (there&rsquo;s a choice for you from Las Vegas to Fresno). By eliminating others from their modest routes, Allegiant gets more and more opportunities to grow. Some opposing airlines have gone bankrupt: ATA and Aloha, and others, including Midwest, are restructuring. <br /> Fuel prices have been a burden this year, but Allegiant still is expected to post 2008 earnings of $1.23 per share, below last year&rsquo;s $1.50. Revenues are expected at $506 million, up 40% from the previous year. The airline of obscure routes intends to see 15% to 20% compound annual growth for the next five years. <br /> </p> <p>To overcome the dragging economy and costly fuel, Allegiant has cut back on long-haul flights, reduced capacity in select markets and concentrated on raising . . . <br /> </p>]]></description>
			<pubDate>Fri, 31 Oct 08 06:20:42 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-31-allegiant_travel_take_the_a_plane#12472</guid>
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			<title>Neogen: Safety first</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-30-neogen_safety_first</link>
			<description><![CDATA[<p>Most U.S. companies are gazing into cloudy crystal balls, trying to figure out what 2009 holds for them. At <strong>Neogen</strong> (Nasdaq:<a href="http://www.smallcapinvestor.com/ticker/neog" >NEOG</a>), the first quarter of fiscal 2009 is in the books and the future doesn&rsquo;t look too shabby for this maker of food and animal safety products. </p> <p>Based in Lansing, Mich., Neogen has 26 years under its belt fulfilling &ldquo;A Mission That Matters,&rdquo; of making the world safer for people and animals. Given the headline-grabbing woes of contaminated food such as Salmonella-laden vegetables in fast-food restaurants and E. coli-tainted beef reaching supermarkets, it&rsquo;s easy to see why there&rsquo;s interest in Neogen's products. </p> <p>A report this summer from The Freedonia Group said U.S. demand for food safety products is likely to increase 6.5% a year to become a $3.2 billion market by 2012.</p> <p>Neogen operates two divisions: food safety, which markets testing products including kits to detect such substances as foodborne bacteria, spoilage and allergens; and animal safety, marketing diagnostic and pharmaceutical products, nutritional supplements, veterinary supplies and disinfectants. </p> <p>Few companies can boast a stock price rising this year, but Neogen is hanging on: up 1.32% year to date. Over the past two years, the share price has nearly doubled. Neogen stock, which is thinly traded, hit a 52-week high of $31.95 on Sept. 19, while it dropped to a low of $20.35 on Jan. 22. On Wednesday, Neogen closed at $26.90.</p> According to Thomson Reuters, of four analysts covering Neogen, two rate it a &ldquo;strong buy,&rdquo; with another calling the stock a &ldquo;buy&rdquo; and another staying neutral. Recently Stephens Inc. and Craig-Hallum Capital added coverage . . .]]></description>
			<pubDate>Thu, 30 Oct 08 06:20:01 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-30-neogen_safety_first#12402</guid>
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			<title>TowneBank: Ruby slippers</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-29-townebank_ruby_slippers</link>
			<description><![CDATA[Focusing on its own community is what <strong>TowneBank</strong> (Nasdaq:<a href="">TOWN</a>) is all about. While other banks travel over the rainbow in search of profits, Towne is proving there is no place like home, reaping profits by concentrating on its own back yard. <br /> <br /> Hometown efforts are keeping TowneBank above the fray. Net income grew 7% to $6.41 million in the quarter through September from the previous year. Quarterly earnings increased 4% to $0.25 per share. Year-to-date earnings were up 6% to $0.73.<br /> <br /> In releasing the third-quarter results, TowneBank said it remains focused on growth strategies in the history-rich Hampton Roads region in southeast Virginia. The bank, with market capitalization of $510 million, runs 17 banking offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach, Norfolk, Williamsburg and York County. Founded in 1998, Portsmouth, Va.-based TowneBank is the largest bank headquartered in Hampton Roads. <br /> <br /> The sound local economy is buoyed by a large year-round harbor, which provides commerce and supports military facilities, and by extensive waterfront property. Real estate has been relatively stable through the mortgage debacle: September&rsquo;s median sale price was $218,500 for existing homes, down 5.4% from August and 2.8% from year-ago, according to the Virginia Beach-based Real Estate Information Network. The median price for a new home in South Hampton Roads was down 17%, and the number of new homes sold rose to 199 from 186 a year ago.<br /> <br /> TowneBank says it has no exposure to subprime mortgages. It has increased . . .]]></description>
			<pubDate>Wed, 29 Oct 08 06:20:53 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-29-townebank_ruby_slippers#12331</guid>
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			<title>Syniverse Holdings: When in roam</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-28-syniverse_holdings_when_in_roam</link>
			<description><![CDATA[Feeling a little overwhelmed with your communications options? <strong>Syniverse Holdings Inc.</strong> (NYSE:<a href="">SVR</a>) wants its customers &mdash; and its customers&rsquo; customers &mdash; to become masters of their mobile communications universe. <br /> <br /> Based in Tampa, Fla., the company has grown over the past 21 years &mdash; the past three as a public company &mdash; to enable communications companies to provide interoperability among their voice and data networks. Syniverse sells the goods that let you &ldquo;roam&rdquo; on cell phones in the United States and in many other countries. Its back-office telecommunications technology also delivers number portability when customers switch carriers.<br /> <br /> Syniverse hasn&rsquo;t given investors many reasons to roam despite the difficult stock market. The stock is down 5.7% year to date, and down about 6% in the past three months. Syniverse has struggled to regain the 52-week high of $22.93 seen on May 19, while its recent low was recorded on Jan. 9, when shares sank to $13.50. <br /> <br /> Analysts who cover Syniverse remain positive about its prospects. Of the 11 surveyed by Thomson Reuters, two have the stock as a &ldquo;strong buy,&rdquo; five rate it a &ldquo;buy,&rdquo; and four call it a &ldquo;hold.&rdquo; On Monday, Syniverse closed at $14.69. <br /> <br /> Syniverse&rsquo;s roots go back to 1987, when it was created as GTE Telecommunication Services, a unit of GTE to work on the need for wireless telephone roaming. Two years after <strong>Verizon </strong>(NYSE:<a href="">VZ</a>) was formed from the merger of GTE and Bell Atlantic, the unit&rsquo;s managers and an investor group acquired the business, which had its initial stock offering in 2005. Since early 2006, Terry Holcombe has served as president . . .]]></description>
			<pubDate>Tue, 28 Oct 08 06:20:27 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-28-syniverse_holdings_when_in_roam#12258</guid>
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			<title>Diamond Foods: A diamond in the rough (economy)</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-24-diamond_foods_a_diamond_in_the_rough_economy</link>
			<description><![CDATA[Bagging a key competitor in the snack food aisle, streamlining costs and playing to consumers&rsquo; at-home meal needs has put <strong>Diamond Foods Inc.</strong> (Nasdaq:<a href="">DMND</a>) on track to achieve or surpass its lofty future goals despite an unstable economy.<br /> <br /> The Stockton, Calif.-based producer of culinary nuts and snack foods completed a $190 million purchase of the Pop Secret microwaveable popcorn brand from General Mills on Sept. 16 just days before reporting record fourth-quarter and fiscal 2008 earnings. The acquisition was aided by a new five-year, $250 million credit facility led by Bank of America.<br /> <br /> Experts say Pop Secret, which is worth $85 million to $90 million in annual sales, is an ideal complement to Diamond&rsquo;s current snack food portfolio.<br /> <br /> &ldquo;Pop Secret gets them into another tangential category where they can leverage existing sales infrastructure given similar buying complexes at retail,&rdquo; Mark Argento, research analyst for Craig-Hallum Capital Group, said in an email to SmallCapInvestor. &ldquo;It should generate good financial leverage over time.&rdquo; <br /> <br /> Diamond said Pop Secret is the second-largest brand in its category, commanding a 25% share in U.S. grocery stores, and its established line of 100-calorie packs plays right into Diamond&rsquo;s marketing strategy aimed toward healthier snack options.<br /> <br /> &ldquo;Pop Secret fits our acquisition criteria, and we plan to invest behind the brand to position it for long-term success,&rdquo; Michael J. Mendes, Diamond&rsquo;s chief executive officer, said in a statement. But Mendes also was quick to say that it&rsquo;s too early to tell exactly how Pop Secret will fit into those long-term plans, and the company&rsquo;s . . .]]></description>
			<pubDate>Fri, 24 Oct 08 06:20:07 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-24-diamond_foods_a_diamond_in_the_rough_economy#12126</guid>
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			<title>Bank of the Ozarks: Don&#39;t feed the alligators</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-23-bank_of_the_ozarks_dont_feed_the_alligators</link>
			<description><![CDATA[For a bank, achieving record profits requires delicate balance: one slip and into the swamp of defaults, bankruptcies and frozen credit you go. Tiptoeing past the morass is <strong>Bank of the Ozarks</strong> (Nasdaq:<a href="">OZRK</a>), which just posted new highs in net income and earnings per share.<br /> <br /> Headquartered in Little Rock, Ark., Bank of the Ozarks reported record net income of $9 million in the third quarter through September, up 7.2% from the previous year. Earnings per share were a record $0.53, up 6%. Dividends for the bank, with market capitalization of $479 million, yield 1.8%. <br /> <br /> Standout results, to be sure. But Bank of the Ozarks still needs to step carefully: real estate development and construction loans pose a risk, as they do for many regional banks. Pushed out of the residential mortgage market by other lenders, these banks turned to commercial real estate loans in recent years. As yet, write-downs of commercial real estate construction loans haven&rsquo;t come close to matching what remains on the books. These loans also are not targeted by the $700 billion bank bailout, which is aimed at relieving those who meddled in faulty mortgage loans and tangled derivative trades.<br /> <br /> To some investors, construction loans are the next unmortared block waiting to fall onto the economy. Bank of the Ozarks has loans and leases of $2.06 billion, up 13.2% from a year ago, and these include a lot of construction and development loans. At the end of December, real estate loans were 82% of total loans and leases, and . . .]]></description>
			<pubDate>Thu, 23 Oct 08 06:20:26 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-23-bank_of_the_ozarks_dont_feed_the_alligators#12059</guid>
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			<title>Usana Health Sciences: A direct sell</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-22-36930cfb27</link>
			<description><![CDATA[<p>It&rsquo;s hard to go wrong in a business where some of your best customers are also your best salespeople.</p> <p>Just ask <strong>Usana Health Sciences Inc.</strong> (Nasdaq:<a href="http://www.smallcapinvestor.com/ticker/usna">USNA</a>), a nutritional products maker based in Salt Lake City. Usana has built a global following through its direct-selling model, which contracts thousands of independent sales associates, most of whom began as Usana customers.</p> <p>For those commissioned associates, direct selling is a thriving industry totaling $30.8 billion in the United States and about $112 billion worldwide last year, according to the Direct Selling Association. But the numbers don&rsquo;t necessarily translate well for all consumer product companies, and those designated as direct sellers tend to come and go, the DSA says.</p> <p>Usana arrived in 1992 and hasn&rsquo;t gone anywhere but up. Annual revenue has more than doubled in the past five years, eclipsing $420 million in 2007. Usana credits a trusted product line and a proven marketing strategy for its continued success.</p> <p>The company made three significant announcements at its annual convention on Aug. 28: a new energy drink product called Rev3; expansion into the Philippines; and new compensation incentives for associates.</p> <p>Spurred by a challenge from CEO David Wentz, Usana scientists came up with an alternative to the sugary, &ldquo;crash-and-burn&rdquo; energy drinks common in today&rsquo;s market. The resulting Rev3 is a green-tea based drink that contains an advanced formula of antioxidants as well as Usana&rsquo;s patented olive-fruit extract, Olivol.&nbsp;&nbsp;&nbsp; </p> <p>&ldquo;This is a product that will appeal to a wide audience,&rdquo; Wentz said in . . . </p>]]></description>
			<pubDate>Wed, 22 Oct 08 06:20:43 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-22-36930cfb27#11985</guid>
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			<title>Amedisys: The right medicine</title>
			<link>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-21-amedisys_the_right_medicine</link>
			<description><![CDATA[<p>In a sick stock market, health-care companies often will outperform those in other sectors. For the past year, <strong>Amedisys Inc.</strong> (Nasdaq:<a href="">AMED</a>) has proven the right medicine to chase away at least some investor blues.</p> <p>Shares of the Baton Rouge, La.-based provider of home-health-care services have risen about 47% in the past year, and of the analysts surveyed by Thomson Reuters, eight of 13 have Amedisys at either &ldquo;strong buy&rdquo; or &ldquo;buy,&rdquo; with five at &ldquo;hold.&rdquo;</p> <p>After bottoming out Oct. 9 at $43.51, Amedisys rebounded along with the overall market on Oct. 13, climbing 15% to $51.48. Amedisys closed Monday at $53.86. </p> <p>With some 80 million baby boomers approaching senior citizen status, companies such as Amedisys expect to see booming demand for their services in the coming decades. The &ldquo;silver tsunami&rdquo; could push Medicare beneficiariesto 79 million by 2030 from 39 million in 2000. Last year, Amedisys derived 89% of its revenue from Medicare. The typical Amedisys home-health patient is Medicare-eligible and 80 to 84 years old, with many afflicted by several serious maladies.</p> <p>Founded by chairman and CEO William Borne in 1982, as of Dec. 31 Amedisys had 325 home-health agencies, 29 hospice agencies and managed a half-dozen others&nbsp; &mdash; all Medicare certified &mdash; in 30 states. </p> For 2007, revenue climbed 29% to $698 million, with net income of $13.1 million, a 70% improvement over 2006. During 2007, Amedisys completed . . .]]></description>
			<pubDate>Tue, 21 Oct 08 06:20:06 -0400</pubDate>
			<guid>http://www.smallcapinvestor.com/stockresearch/spotlight/2008-10-21-amedisys_the_right_medicine#11898</guid>
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