New record for Russell 2000
The Russell 2000 ended the day with a new record high close, up 6.27 points, or 0.75%, to 839.92, topping the previous record close of 834.77 on May 9. Meanwhile, the Dow Jones Industrial Average lost 2.93 points, or 0.02%, to 13,539.95.
Shares of Las Vegas-based Gaming Partners International Corp. (Nasdaq: GPIC) were among the winners following news the manufacturer of table gaming equipment reported a quarterly net loss that was not as bad as analyst expected. The net loss for the three-month period ended March 31 was $1.5 million, or $0.18 per share, compared with net income of $2.1 million, or $0.25 per share in the first quarter of 2006, the company announced after Monday’s close. Three analysts polled by Thomson Financial had projected that Gaming Partners would lose $0.22 per share. The stock added $1.55, or 15%, to end the day at $11.75.
United Financial Bancorp, Inc. (Nasdaq: UBNK) announced after Monday’s close that the United Mutual Holding Company, which holds 53.8% of its shares, will be converted from a mutual to a stock form of organization. The conversion plan has been approved by Mutual’s board. West Springfield, Mass.-based United Financial Bancorp is the holding company for United Bank. In connection with the conversion, shares of common stock of a new successor holding company will be offered for sale to depositors of the bank. The stock rose $1.14, or 8%, to $15.59.
Shares of Xinhua Finance Media Ltd. (Nasdaq: XFML) defied the small cap index’s upward momentum, falling $1.66, or 19%, to $7.10, following an announcement after Monday’s close that a U.S. law firm is looking at the Shanghai, China-based media company to determine whether it has violated federal securities laws by selling at least $300 million in stock on or about March 9, 2007. According to news reports earlier this month, Shelly Singhal, Xinhua Finance’s former CFO, was also an investment banker and stockbroker for Bedrock Securities at the time of the company’s IPO. Bedrock has been under a cease-and-desist order prior to the IPO for violating SEC regulations. That information was not disclosed when Xinhua Finance went public.
In business news, billionaire investor Kirk Kerkorian, who owns 56% of the MGM Mirage (NYSE: MGM), announced that his Beverly Hills, Calif.-based company Tracinda Corp. has bid for two of the casino’s properties.
U.S. Treasury Secretary Henry Paulson and Chinese government officials kick off two days of talks on a number of economic issues. Policy makers in Washington have long complained that China’s currency is artificially undervalued, raising the country’s exports and depressing imports.
