Russell 2000 edges up
April 10 (SmallCapInvestor.com) –Stocks are moving sideways in midday trading today with oil prices stabilizing at about $62 a barrel. Among small caps, news of financial problems is hurting shares of SatCon Technology Corporation (Nasdaq: SATC) , while an upwardly revised revenue forecast lifted software maker DivX, Inc. (Nasdaq: DIVX) .
At 1.45 PM the Russell 2000 had gained 2.92 points, or 0.36 percent, to 814.56. The Dow Jones Industrial Average was up 0.73 points, or 0.01 percent, to 12,569.97.
Shares of electronics and motors developer SatCon Technology Corporation are sagging on news the company has received a “going concern” opinion from an auditor, an indication of financial difficulties. Auditors have continued their existing “going concern” opinion in the most recently filed Form 10K report, the Boston-based company said after Monday’s close. SatCon said its cost cutting efforts and focus on producing technology for the alternative energy market should help the company. Shares are down $0.09, or 7.09%, to $1.18.
San Diego-based DivX, Inc. moved into positive territory after revising upward its forecast for the first quarter of 2007 due to strong consumer demand for its products. Revenue for the quarter ended March 31, 2007, is projected between $19.8 million and $20.2 million and earnings are expected to be flat, the video compression software maker said after Monday’s close. Analysts are looking for revenue of $18.69 million. Previously the company had projected revenue of $17.3 million and $19.3 million and earnings slightly below the figure for the last quarter of 2006. Shares are up $2.72, or 13.53%, to $22.82.
Shares of Biopharmaceutical company Emisphere Technologies Inc. (Nasdaq: EMIS) are up following news Michael V. Novinski has been appointed President and CEO. Mr. Novinski will replace interim head Lewis Bender and will assume his new duties in early May, Tarrytown, N.Y.-based Emisphere said before the start of trading. The stock price has added $0.82, or 25.63%, to $4.02.
The price of oil has stabilized at just above $62 a barrel despite an announcement Monday by Iran that it has begun enriching uranium on an industrial scale. President Mahmoud Ahmadinejad said his country is now capable of enriching nuclear fuel using 3,000 centrifuges.
By Alex Alexandrov
