Stocks climbing
Indices are cautiously creeping into positive territory ahead of the Federal Reserve’s imminent decision on interest rates. Among specific small caps, shares of LMI Aerospace, Inc. (Nasdaq: LMIA) are falling on news of a lower quarterly net income, while Super Micro Computer, Inc. (Nasdaq: SMCI) settled a patent infringement lawsuit.
At 2:08 p.m. ET the Russell 2000 was up 1.38 points, or 0.17 percent, to 832.28. The Dow Jones Industrial Average had added 29.66 points, or 0.22 percent, to 13,338.73.
Shares of Super Micro Computer, Inc. are moving up on news the San Jose-based company has settled litigation between it and Rackable Systems, Inc. (Nasdaq: RACK). The result confirms the integrity of the design, manufacture and sales of Super Micro’s full product line, the company said before the opening bell. A patent infringement lawsuit trial was set to begin on August 13, 2007. The settlement will have no financial effect on Super Micro. Shares are up $0.53, or 5%, to $11.03.
St. Louis-based LMI Aerospace, Inc., a maker of aircraft structures, reported that its net income declined on a year-on-year basis. The net income for the quarter ended March 31 was $2.2 million, $0.20 per share, compared with $2.3 million, or $0.27 per share, for the first quarter of 2006, the company said after Tuesday’s close. Analysts were looking for earnings of $0.26 per share. LMI Aerospace said higher sales were offset by an increase in employee expenses and a one-time $170,000 bad debt expense from a corporate jet customer. The stock has lost $.051, or 2%, to $19.94.
Israeli IT company BluePhoenix Solutions Ltd. (Nasdaq: BPHX) has opened an off-shore center in St. Petersburg, Russia. A definitive agreement to acquire a company employing 150 developers was signed today, BluePhoenix said before the start of trading. The initial investment will be followed by additional payments based on a three year performance formula. The company said the acquisition of the Russian office will result in annual savings of $3 million. Shares are up $1.11, or 13%, to $9.60.
In economic news, the price of oil has hit a seven week low of just above $61 on news weekly U.S. oil stocks increased by 5.6 million barrels last week. Analysts were expecting a modest rise of just 400,000 barrels.
