Friday's Top Performing Small Cap Stocks (RPTP, MCHX, BGMD, WWWW, RST)
Large or small, stocks are expected to take it on the chin early this week as governments wrestle with resurrecting their beaten-down economies.
The fact that gold has crossed the $1,700 mark for the first time and that Treasuries are on the rise show where investor sentiment could be headed.
Friday's Top Performing Small Cap Stocks (AIRM, CASC, ZQK, SOLR, IPSU)
Friday's Top Performing Small Cap Stocks (AIRM, CASC, ZQK, SOLR, IPSU)
What’s Wrong with this Sugar Investment? (SGG, IPSU)
How to vote with your dollars
I won’t make the foolish mistake of pushing my personal political views into this letter. My wife calls my ideas crazy, if not offensive and downright unrealistic.
So if my politics elicit disgust and confusion with my own wife, I doubt I’ll have much luck parading them in the pages of the Resource Prospector.
Who you vote for is your business.
But when it comes down to what you should vote for, I have a few things to say on the subject.
I’m talking about the way that we all conduct our personal investment portfolios, as well as the goods and services we buy.
I’ve long believed that these everyday activities are a much more important ongoing vote than any one you cast into a ballot box.
Sweet Vengeance Against the Gas Pump
In yesterday's edition, I talked about an oil services company that benefits from higher oil prices.
But higher oil prices don't just benefit oil companies. In fact, higher oil prices can sometimes hurt oil companies - because higher oil prices frequently reflect higher production costs - so while a company might get more dollars per barrel, each barrel costs it more to get out of the ground. And even though the effect is usually small, higher prices typically result in a somewhat diminished demand.
According to Enerdata, an independent energy consulting company, gasoline consumption dropped 4.5% in North America during the record high oil prices of 2008. That's certainly a significant drop, but as you're probably painfully aware, oil prices more than doubled from the previous year:
Jim Rogers says this commodity is cheap TODAY
For months, former George Soros partner and famed resource investor Jim Rogers has been trumpeting natural gas and silver investments. I've been doing the same in the Resource Prospector newsletter since launching back in March. If you've been sitting on the sidelines, there is still time to take action before these investments run away from you.
Jim Rogerswrote the book on resource investing: Hot Commodities. I urge anyone interested in the topic to go out and get yourself a copy. Right now there are 29 new and 17 used copies of this book on Amazon.
When Jim Rogers said to buy natural gas and silver three months ago, I was already urging you to do the same. Natural gas prices have since risen by more than 25% - and some of the stocks in that sector have done far better.
I've also been pounding the silver drum. Silver is now up almost 10%, but I still think there's much more upside. You can read more about silver's potential in this past issue of the Resource Prospector by clicking here.
Rogers is still bullish on silver, but he recently mentioned another cheap commodity. It's something that Americans use everyday in great quantities - over 160 pounds per person every year.
Century Aluminum, Energy Conversion Devices and Fuel Systems Solutions lead small-cap volume in pre-market
Also included among the results: Imperial Sugar Co. (Nasdaq:IPSU), Force Protection Inc. (Nasdaq:FRPT), Geron Corp. (Nasdaq:GERN), UAL Corp. (Nasdaq:UAUA), PetMed Express Inc. (Nasdaq:PETS) and Vanda Pharmaceuticals Inc. (Nasdaq:VNDA).
Imperial Sugar, Citi Trends and TIBCO Software lead small-cap volume in pre-market
Also included among the results: Atheros Communications Inc. (Nasdaq:ATHR), International Bancshares Corp. (Nasdaq:IBOC), Pinnacle Financial Partners Inc. (Nasdaq:PNFP), ValueClick Inc. (Nasdaq:VCLK), Conn's Inc. (Nasdaq:CONN) and Energy Conversion Devices Inc. (Nasdaq:ENER).
DryShips, Computer Programs And Systems and TiVo lead small-cap volume in pre-market
Also included among the results: Semtech Corp. (Nasdaq:SMTC), Cabot Microelectronics Corp. (Nasdaq:CCMP), HMS Holdings Corp. (Nasdaq:HMSY), Imperial Sugar Co. (Nasdaq:IPSU), Arkansas Best Corp. (Nasdaq:ABFS) and Focus Media Holding Ltd. (Nasdaq:FMCN).
T 3 Energy Services, Susser Holdings and General Communication lead small-cap percentage losers
Also included among the results: Old Second Bancorp Inc. (Nasdaq:OSBC), Central Pacific Financial Corp. (Nasdaq:CPF), Syms Corp. (Nasdaq:SYMS), Imperial Sugar Co. (Nasdaq:IPSU), CPI International Inc. (Nasdaq:CPII) and PHI Inc. (Nasdaq:PHIIK).
TBS International, Energy Conversion Devices and Central European Media Enterprises lead small-cap volume in pre-market
Also included among the results: Palm Inc. (Nasdaq:PALM), Herman Miller Inc. (Nasdaq:MLHR), Silver Standard Resources Inc. (Nasdaq:SSRI), Imperial Sugar Co. (Nasdaq:IPSU), Mellanox Technologies Ltd. (Nasdaq:MLNX) and Data Domain Inc. (Nasdaq:DDUP).
A M Castle, Gaylord Entertainment and First United lead small-cap percentage gainers
Also included among the results: SL Green Rlty REIT (Nasdaq:SLG), Helen of Troy Ltd. (Nasdaq:HELE), Imperial Sugar Co. (Nasdaq:IPSU), Dollar Financial Corp. (Nasdaq:DLLR), M I Homes Inc. (Nasdaq:MHO) and West Bancorp Inc. (Nasdaq:WTBA).
LaBarge, Hanesbrands and Chiquita Brands International among 52-week lows
Also included among the results: Imperial Sugar Co. (Nasdaq:IPSU), MI Developments Inc. (Nasdaq:MIM), St Mary Land & Exploration Co. (Nasdaq:SM), Northrim BanCorp Inc. (Nasdaq:NRIM), Jackson Hewitt Tax Service Inc (Nasdaq:JTX) and Bank of Marin Bancorp (Nasdaq:BMRC).
Russell dives at closing; ATAI, ARYX and IPSU lead gainers
Looks like we’re back in the slump we saw pervade October trading. Small caps plummeted 6.12% today and are now down 41% for the year. Today’s small-cap gainers are ATA Inc. (Nasdaq:ATAI), ARYx Therapeutics (Nasdaq:ARYX) and Imperial Sugar (Nasdaq:IPSU).
Other Market Watch highlights today included:
• Anything currently linked to Russia is trouble; the Russian Stock Exchange closed for two days to stem massive selling in Russian equities.
• For 2008, the Russell is now down 41%, while the Dow is off 38% and the S&P 500 is down 42%.
• Including action since mid-September, this was the eighth session sporting a loss of 5% or more.
• Energy and other commodity values remain a bearish element for many stocks right now.
• Crude oil prices in the U.S. tumbled $3.17 a barrel to $56.16, the lowest closing price since January 2007.
• Copper and aluminum prices slumped to three-year lows in overseas trading (although copper did close slightly higher in U.S. trading).
• Energy shares were a drag on the market, with the Energy SPDR Fund off 8.1%.
Small Cap Gainers:
• ATA Inc. rallied 19% as the Chinese computer testing firm reported earnings. See (Nasdaq:ATAI).
• ARYx Therapeutics swings to profit in Q3; shares up a whopping 47%. See (Nasdaq:ARYX).
• Imperial Sugar Co. jumped nearly 15% as the sugar processing firm extended a recent upside push from the October lows. See (Nasdaq:IPSU).
• Embattled Dow component General Motors Corp. was up 5.4% on talk that legislators are warming up to ideas to help provide financial assistance . . .
TARP jitters, consumer spending fears, commodity slide ignite freefall
Small-cap stocks went into freefall mode Wednesday, burdened by new plans for the troubled asset relief program (TARP), ongoing worries about corporate profitability, money flow out of equities into credit markets, further downside probing in commodities to 5-year lows and renewed concerns about consumer spending in a difficult economic environment. The Russell 2000 (NYSE:IWM) closed down 29.49, or 6.12% at 452.80, the second-lowest daily close in more than five years. For 2008, the Russell is now down 41%, while the Dow is off 38% and the S&P 500 is down 42%.
We’ve all become somewhat numb to mind-boggling daily volatility since the collapse kicked into gear, but to give some perspective, if you went back before the stock market crash began in mid-September, today’s slide would have been the largest one-day swoon of the year. Including action since mid-September, this was the eighth session sporting a loss of 5% or more.
The market was already in a fragile frame of mind this morning after Best Buy Co. Inc. (NYSE:BBY) lowered its outlook, which stirred worries about consumer spending heading toward the key holiday season. With two-thirds of the U.S. economy driven by consumer spending, a picture of rising unemployment and a dreary outlook for next year make for a troubling brew. BBY shares lost 8% on the day, while the S&P Retail Index was off 5.7%.
Then after the BBY scare, investor confidence seemed to be shaken even more by the Treasury Department’s decision to scrap the original rescue plans of using $700 billion in TARP funds to buy up toxic debt and instead divert money into more capital injections. Those investor concerns appear to be two-fold: first, there is a perception that the government still is bouncing back and forth trying to put out fires instead of having a deliberate plan of attack to help restore financial solvency. Second, there is a chance that if the government funnels billions of dollars into these financial firms it will dilute share-holder equity. The PHLX KBW Banking Index was off 6.1%.
When the TARP was first approved by Congress back on Oct. 3, the Russell was at 619.40. After putting $350 billion to “work” to rescue the market out of the credit crisis, the Russell is now at 452.80. Clearly, there is still work to be done. And the longer the market struggles the more likely it is that public frustration over . . .
Isramco, Charlotte Russe Holding and Imperial Sugar lead small-cap percentage gainers
Also included among the results: Vivus Inc. (Nasdaq:VVUS), PHH Corp. (Nasdaq:PHH), Mercadolibre Inc. (Nasdaq:MELI), GTSI Corp. (Nasdaq:GTSI), Westmoreland Coal Co. (Nasdaq:WLB) and Oneida Financial Corp. (Nasdaq:ONFC).
Here are the biggest percentage gainers among small caps:
Small caps higher on firm dollar, soft crude oil
Small-cap shares opened higher Monday, lifted by advances in overseas equity markets, a firm U.S. dollar and a dip in crude oil prices. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.86, or 0.12%, at 720.91.
The U.S. dollar was up nearly 1% against the yen into the market open, and pushed about 0.2% higher versus the euro. The firm dollar tone was linked to a $2-per-barrel pullback in crude oil futures, which came off Friday’s record highs amid profit-taking.
Financial shares could find a boost this morning from a jump in the largest European bank HSBC, which climbed about 2% overnight on profit news. Early on this morning, Citigroup (NYSE:C) was up 0.6% and Bank of America (NYSE:BAC) was up about 0.8%. Other large-caps of note included Wal-Mart (NYSE:WMT), which was up 1.2% shortly after the opening on optimism ahead of earnings. Research in Motion (Nasdaq:RIMM) jumped 2.4% on news that the company was unveiling a new BlackBerry Bold Smartphone.
A massive earthquake in China overnight caught trader attention, but a lack of details seemed to leave the market without a feeling for whether or not it would have an impact on equities in the United States.
Looking ahead to this week’s action, the economic calendar picks up steam after a relatively tame risk quotient last week. Not only will the market have to navigate through a batch of important data on retail sales, inflation and housing starts, but there is a glut of Federal Reserve speakers on the docket.
Speaking of Fed speakers, Chicago Fed President Charles Evans was the first one up to the plate this morning, saying that housing was still a drag on the economy, and that growth risks were to the downside, but inflation risk was on the upside. He said that U.S. growth should improve in the second half of the year, but . . .
The Pantry, Imperial Sugar and Britton & Koontz Capital among 52-week lows
The Pantry, Inc. (Nasdaq:PTRY), Imperial Sugar Company (Nasdaq:IPSU) and Britton & Koontz Capital (Nasdaq:BKBK) were among the new 52-week lows established during Wednesday's trading among companies with market capitalizations or values under $750 million.
Ambassadors International, Inc. (Nasdaq:AMIE), Preferred Bank (Nasdaq:PFBC) and Frequency Electronics, Inc. (Nasdaq:FEIM) were also among the 52-week small-cap lows.
Here are today's 52-week small-cap lows:
CEO: Imperial Sugar will take advantage of reduced sugar prices
Imperial Sugar Co. (Nasdaq: IPSU) CEO Bob Peiser said trends that continue to affect the company include soft industry pricing and a Mexican sugar crop that is expected to be large. Peiser made the comments during a midday conference call.
“The Mexican sugar industry is expected to harvest a large crop. This creates more competition for our refined products but helps us to the extent that Mexican imports are in the form of their standard sugar and can be used as a raw material in our refineries,” Peiser said. “We have already seen raw sugar pricing reduced because of the greater expectations of Mexican imports that can be used by refiners of the raw material.”
In late November, Imperial Sugar announced that it created a joint venture with Mexico-based Ingenios Santos, S.A. de C.V. to market sugar in Mexico. Peiser said the combined Mexico and U.S. market is 50% larger than the U.S. market alone.
Peiser said the conference call will be his last as he steps down as CEO in January. John Sheptor, the current Chief Operating Officer, will be appointed as Imperial’s new president and CEO at that time.
“I plan to reduce my involvement with the company effective Jan. 29, which is the date of our annual meeting and at that time assume the position of vice chairman for the next year,” Peiser said. “John is very qualified to provide extraordinary leadership to our associates and to work toward enhancing stockholder value. His skill sets are very complimentary to mine and are the right ones for Imperial at this time.”
Imperial Sugar Company says year-over-year comparisons don’t tell whole story
During an afternoon conference call, Imperial Sugar Company (Nasdaq: IPSU) executives tried to put the company’s recently released third-quarter results into perspective.
“In our opinion, the third quarter continues a year of good performance in the face of declining industry dynamics. A clearly exceptional performance in last year’s second half due to post-Katrina activities is a factor making year-over-year comparisons very difficult,” CEO Robert Peiser said during the call. “Except for last year, this year’s third quarter results were the best of any third quarter since I joined the company over five years ago.”
Before the opening bell, the Sugar Land, Texas-based company announced earnings of $7.6 million, or $0.64 per share, during the three months ended June 30. During the same period of 2006, the company recorded earnings of $15.2 million, or $1.30 per share. Revenues totaled $216 million, compared with $231 million a year earlier. Wall Street analysts were expecting earnings of $0.38 per share on $201.7 million in revenue.
Peiser said year-over-year comparisons are difficult because last year the sugar industry was short on capacity and enjoyed “helpful” pricing dynamics. This year, he said the industry’s capacity has been restored and market prices for sugar across many channels are considerably weaker. However, he said the sugar that the company purchased cost less than last year’s prices. Lower energy prices also helped the company make a profit, he said.
Even with lower energy and sugar costs, Peiser said the company will have a difficult time comparing with last year’s results.
At noon, Imperial Sugar announced that its board approved a quarterly cash dividend of $0.07 per share payable on August 24 to shareholders of record on August 14. Also this afternoon, Imperial Sugar announced that Greig P. DeBow, Jr. has been appointed to be the company’s vice president of consumer sales and marketing.
Imperial Sugar Company reports sour FYQ3 results
Imperial Sugar Company (Nasdaq: IPSU) reported sour results for its fiscal third quarter; but still beat analyst estimates.
For the three months ended June 30, the Sugar Land, Texas-based company reported net sales decreased 6.5% to $216.4 million, compared with $231.3 million in the same quarter last year, on account of lower sales prices on a small increase (0.6%) in volumes. One analyst polled by Thomson Financial was expecting revenue of $201.73 million.
Imperial Sugar recorded earnings for the quarter of $7.6 million, or $0.64 per share, compared with $15.2 million, or $1.30 per share in the third quarter of 2006. One analyst polled by Thomson Financial was expecting earnings of $0.38 per share.
Russell down as Imperial Sugar sales fall
Meanwhile, the Russell 2000 was down 5.60 points, or 0.69 percent, to 808.97.
