Nothing but red
U.S. stocks are sagging late this morning following a drop on Shanghai’s stock market. At 11:15 a.m. ET the Russell 2000 was down 3.46 points, or 0.41%, to 834.07. The Dow Jones Industrial Average had lost 33.32 points, or 0.25%, to 13,488.02.
Shares of VocalTec Communications Ltd. (Nasdaq: VOCL) are below the flat line despite news that the Israeli company narrowed its quarterly net loss. The net loss for the period ended March 31 was $1.8 million, or $0.25 per share, compared with a net loss of $2.0 million, or $0.43 per share, in the first three months of 2006, VocalTec said after Tuesday’s close. The receipt of several large orders drove revenues to $2.2 million, from $1.7 million a year earlier. Analyst estimates were not available. Shares are down $0.53, or 15%, to $3.08.
San Francisco-based Novacea, Inc. (Nasdaq: NOVC) is seeing its stock price soar $8.24, or 102%, to $16.30, following news of an exclusive license agreement with Schering-Plough Corp. (NYSE: GSP) to develop and commercialize the prostate cancer drug Asentar. Novacea will receive an upfront payment of $60 million, a license fee of $25 million, as well as a commitment by Schering-Plough to purchase $12 million of Novacea common stock at a predetermined price within ten days of the closing, the company announced before the opening bell. Additionally, pre-commercial milestone payments could reach $380 million.
Shares of Applied Signal Technology, Inc. (Nasdaq: APSG) are trading in negative territory on news the company’s quarterly numbers fell short of expectations. The net income for the second quarter of fiscal 2007 ended May 4 was $1.58 million, or $0.13 per share, compared with a profit of $1.52 million, or $0.13 per share, during the same period of 2006, the Sunnyvale, Calif.-based provider of digital signal processing products said after Tuesday’s close. Nine analysts polled by Thomson Financial had projected earnings of $0.14 per share. The stock is down $1.35, or 8%, to $15.62.
The Shanghai Composite Index lost 6.5% on Wednesday after China’s Ministry of Finance raised a trading transaction charge to 0.3% from 0.1% in order to calm the booming stock market.
