Russell 2000 going strong
The Russell 2000 small cap index is posting strong gains and U.S. stocks react to news of a stronger-than-expected rise in consumer confidence in May. At 11:32 a.m. ET the Russell 2000 was up 7.24 points, or 0.92%, to 837.57. The Dow Jones Industrial Average was up 26.90 points, or 0.20%, to 13,534.18.
Shares of CT Communications, Inc. (Nasdaq: CTCI) are surging following news the Concord, N.C.-based telecommunications company will be purchased by Windstream Corp. (NYSE: WIN). The two companies have entered into a definitive agreement that all outstanding shares of CT Communications will be purchased for a price of $31.50 per share in cash, Windstream said before the opening bell. The acquisition is expected to close in the second half of 2007, following approval by regulators and CT Communications’ shareholders. The stock has added $9.67, or 45%, to $31.25. That’s close to the company’s 52-week high of $31.44.
Nashua, N.H.-based Nashua Corp. (Nasdaq: NSHA) has begun an offer to repurchase up to 1.9 million shares of its common stock in a tender offer at a price of $10.50 per share, the manufacturer of thermal specialty papers said before the start of trading. The repurchase will be financed with loans from LaSalle Bank National Association and Bank of America. If Nashua repurchases all 1.9 million shares, it will have bought 30% of its currently outstanding shares. The stock is up $1.05, or 12%, to $9.87.
Shares of Columbus McKinnon Corp. (Nasdaq: CMCO) have added $2.64, or 10%, to $29.79, on news the maker of hoists, cranes, chain, conveyors, material handling systems reported quarterly results that beat analysts’ expectations. Net income for the fiscal 2007 fourth quarter ended March 31 was $11.1 million, or $0.58 per share, compared with $47.8 million, or $2.53 per share, in the same quarter of 2006, the Amherst, N.Y.-based company reported after market open. Five analysts surveyed by Thomson Financial were forecasting earnings of $0.48 per share.
In economic news, American consumers became more confident in May despite declining home prices and higher gasoline prices. The consumer confidence index rose to 108.0 in May from a revised level of 106.3 in April, the Conference Board announced after the start of trading. Economists were expecting the index to rise to 105 in May from April’s original reading of 104.
