Tech sector hurts stocks
April 18 (SmallCapInvestor.com) – Stocks are generally sagging this morning on disappointing news from tech sector giants Yahoo! and IBM. Among small caps, shares of Millennium Cell Inc. (Nasdaq: MCEL) are up on news of a strategic partnership to develop hydrogen fuel cell technology, while videophone developer WorldGate Communications, Inc. (Nasdaq: WGAT) faces delisting.
At 10:38 AM the Russell 2000 was down 2.79 points, or 0.34 percent, to 826.17. The Dow Jones Industrial Average had lost 13.74 points, or 0.11 percent, to 12,759.30.
Eatontown, N.J.-based hydrogen battery technology company Millennium Cell Inc. has formed a strategic partnership with high tech manufacturing and engineering services company Kuchera Defense Systems. The two companies will co-develop hydrogen fuel cartridges that KDS will then manufacture and sell to the military and commercial markets, Millennium Cell said before the opening bell. Shares are up $0.02, or 2.20%, to $0.93.
Videophone developer WorldGate Communications is in negative territory following news that it has received a notice from Nasdaq that it is not in compliance with certain requirements for continued listing. On April 11, 2007, the company was warned it faces delisting because it violates the rule that it have a market value of at least $35 million, or minimum equity of $2.5 million, or $500,000 of fiscal year net income from continuing operations, Trevose, Pa.-based WorldGate said after Tuesday’s close. It has until April 26 to respond. Shares are down $0.09, or 10.34%, to $0.77.
Shares of biotechnology company Celsion Corporation (AMEX: CLN) are gaining ground following news it has entered into an asset purchase agreement with Boston Scientific Corporation (NYSE: BSX). Medical devices maker Boston Scientific will purchase Celsion’s Prolieve assets for $60 million, Columbia, Md.-based Celsion said before market open. Prolieve is a microwave-based system for the treatment of benign prostatic hyperplasia. Under the terms of the agreement, Celsion will receive $30 million at the close of the deal and two annual installments of $15 million. Shares are up $0.44, or 9.98%, to $4.85.
Search engine giant Yahoo! (Nasdaq: YHOO) reported an 11% drop in first-quarter profit late Tuesday, with a rise in revenue offset by higher expenses. Net income was $0.10 per share compared with $0.11 per share in the first quarter of 2007.
International Business Machines Corp. (NYSE: IBM), the world’s biggest computer services company, reported late Tuesday that first quarter service signings were below Wall Street’s expectations of $11.5 billion to $12 billion. Analyst Goldman Sachs responded by downgrading the Armonk, N.Y.-based company to “neutral” from “buy.”
