The following is a list of today’s winners and losers within the Russell Microcap Index.

Today was options expiration and it made for dull trading. The S&P 500 finished up 2.74 at 921, the Dow Industrials finished down 16.85 at 8,538XXX. The Nasdaq was the strong index, it finished the day up 19.75 at 1,827 on a Goldman Sachs (NYSE:GS) upgrade of Microsoft (Nasdaq:MSFT). 

Oil prices fell below $70. But even better, gasoline futures dropped below $2 after inventory data showed a huge surplus. That suggests prices at the pump may start to head lower.

Large cap oil stocks like Exxon-Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were down in the 1% range, but several micro-cap oil & gas exploration stocks were up. Brigham Exploration (Nasdaq:BEXP) was up 4.36%, Kodiak Oil (AMEX:KOG) was up 7% and Cano Petroleum (AMEX:CFW) was up 3.5%.

The Russell 2000 finished much like its large-cap brethren, with a minimal 3.16 point gain.

Top small cap winners for the day included TerreStar (Nasdaq:TSTR) up 30%, Sealy (NYSE:ZZ) up 20.5% and Smith and Wesson (Nasdaq:SWHC) up 21.9%.

Small cap decliners of note include A-Power Energy (Nasdaq:APWR) down 12%, E*Trade (Nasdaq:ETFC) down 11% and Cost Plus (Nasdaq:CPWM) down 13%.

So now the government is actually going to subsidize car sales with up to $4,500 in incentives for car buyers who get rid of cars that get 18 mpg or less.  

I understand that the auto industry is hurting. And I also get that more efficient cars help reduce our dependence on foreign oil. But is it appropriate to use tax payer dollars to fund auto purchases?  

Perhaps if we were talking about something that is a necessity, like farming, subsidies make some sense. After all, we need farmers. I think we have to consider cars a luxury, or at least a discretionary purchase.  

Not only that, but a car subsidy can only create temporary demand. And given the precipitous drop in car sales (10 million vehicles will be sold this year as opposed to 16 million in 2007), it's highly unlikely any momentum can be created. Not with unemployment on the rise. And not with home values still falling.  

*****Increasing demand based on stimulus spending is a temporary fix. The government is just buying time hoping that the economy will recover. But many of the signs of recovery are based in stimulus spending.  

*****Analysts are now acknowledging that oil has been rallying on a falling dollar and on expectations of price inflation. Of course, the potential for price inflation is, once again, directly related to government stimulus spending.  

The massive amounts of Treasury bonds that have been and will be sold are boosting interest rates and driving the value of the U.S. dollar down. So any asset priced in dollars is rising in price. Like oil. Mind you, that doesn't mean its value is rising, just its price.
 
At some point, higher oil prices will affect the prices of other goods. But as I've noted before, it's likely to be a while before producers are able to raise prices in the current economic environment. Remember, it wasn't until 2007 that inflation really started to become an issue.  

*****Another catalyst for commodity prices in general is supply. Global demand is down, credit has been difficult to get, and miners and producers have not been investing in increasing supply.  

That sets the stage for supply/demand imbalances when economic growth returns.  
We'll be discussing these topics and our bullish outlook for commodity stocks in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6 pm. It's free to attend, you can sign up HERE.  

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, has his latest video chart analysis ready for you. Last Friday, Jason absolutely nailed this week's trading. I hope you find this week's analysis just as useful. Here's the LINK.  

After a brief slump in morning trading spurred by the surge in crude prices, small caps have steadily risen during the Monday afternoon session. At 1:52 p.m. ET, the Russell 2000 (NYSE:IWM) was up 5.28, or 0.72%, at 738.89.

Crude oil have skyrocketed to more than $137 a barrel in afternoon trading. Investors reacted nonchalantly to Saudi Arabia’s announcement that it would increase production. In other commodity trading, the U.S. dollar is down against both the yen and the euro.

“Saudi Arabia has offered to increase oil production, as the world’s biggest oil exporter moves to address global fears that prices are spiraling out of control, according to the London Times. They said they would increase production by 200,000 barrels a day next month and this comes on top of a 300,000 increase in June,” Andy Busch, foreign exchange strategist for BMO Capital Markets, wrote in an email. “Together, the increases would take production above 10 million barrels a day in Saudi Arabia. Then, CNBC reports that they will have difficulty meeting this new level and a North Sea drill rig fire causes oil to go up.”

Earlier this morning, the NY Manufacturing Survey came in below expectations, which put the market on the defensive before the crude oil price spike delivered a knockout punch for stocks. The manufacturing report came out at minus 8.68 for June, well below the median forecast for a dip of 2, and eroding from last month’s figure of minus 3.23.

Lehman Bros. (NYSE:LEH) kept the financial sector on investors’ minds after announcing a $2.8 billion loss for the second quarter. Lehman’s early Monday announcement met its pre-announcement issued last week. In other large-cap financial news, American International Group (NYSE:AIG) was down some 1%, after announcing that the CEO will be replaced. Also on the large-cap front, General Electric (NYSE:GE) shares were off 0.5% after being downgraded overnight . . .

Though major stocks are trading generally higher, small caps have continued sliding in midday Monday trading. A drop in crude oil prices and a better-than-expected report on pending home sales for April was not enough to rally small-cap stocks. At 1:37 p.m. ET, the Russell 2000 (NYSE:IWM) was down 4.11, or 0.56%, at 736.26.

Crude oil prices were off more than $2 dollar a barrel into midday trading, slipping to $136.34 a barrel in recent action. The price decline is a welcome sign following Friday’s historic surge in energy prices and national pump prices breaking the $4 barrier over the weekend.

Small-cap investors were encouraged by a better-than-expected report on April pending home sales in early trading, but gains were lost shortly thereafter. Pending home sales rose 6.3% in April, according to the National Association of Realtors. Analysts anticipated a dip of 0.3%.

A big acquisition deal among large-cap insurers also boosted investor psychology. Willis Group Holdings (NYSE:WSH), the world’s third-largest insurance brokerage, announced a deal to buy rival Hilb, Rogal and Hobbs Co. (NYSE:HRH) for $1.7 billion, news that sent HRH shares soaring some 44% on the opening.

In Monday midday trading, the U.S. dollar was up against the yen and the euro. The greenback slid during last week’s trading as European central bankers talked up rate hikes after Fed Chairman Ben Bernanke spoke about a desire to strengthen the dollar. In recent trading against the euro, the U.S. dollar was up to $1.5637.

Andy Busch, BMO Capital Markets’ foreign exchange strategist, said investors are watching oil and food prices as inflation indicators.

“In normal business cycles when the unemployment goes up, we focus on indicators that provide us insight into spotting a turnaround like housing or auto sales or durable goods,” Busch said. “However in the financial markets, we're focusing more on inflation from energy and food than on whether the economy has bottomed. So things . . .

Small-cap stocks were unable to sustain a mild opening upside brush as support from a dip in crude oil prices was countered by concerns over the credit crunch impact on financial companies. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.31, or 0.04%, at 740.05.

Crude oil prices were off some $3 dollar a barrel into the U.S. stock market open, slipping below $136 dollars a barrel, a welcome sign following Friday’s dramatic surge in energy prices and national pump prices breaking the $4 barrier over the weekend.

A mild uptick in equity index prices took place after April pending home sales were reported up 6.3%, well above the forecast for a dip of 0.3%.

A big acquisition deal among large-cap insurers also boosted investor psychology. Willis Group Holdings (NYSE:WSH), the world’s third-largest insurance brokerage, announced a deal to buy rival Hilb, Rogal and Hobbs Co. (NYSE:HRH) for $1.7 billion, news that sent HRH shares soaring some 44% on the opening.

The U.S. dollar was firm versus the yen into the stock market opening, gaining some 1.3% and up about 0.5% against the euro. The greenback took a big hit late last week, as European central bankers talked up rate hikes after Fed Chairman Ben Bernanke spoke about a desire to strengthen the dollar, which told foreign exchange traders that the world’s policy leaders were not in step with each other.

Stock markets around the world took a hit overnight, catching up with the big slide in U.S. equities from Friday. Japan shares were off 2.1%, Taiwan down 1.8%, Singapore down 1.9% and Bombay slumped 3.2%. Markets in Hong Kong, China and Australia were closed for holidays. However, European stocks were tame given the global rout in play.

The fact that European stocks were able to hold together relatively well overnight supported U.S. stocks this morning, as did the oversold condition from Friday’s big slide, according to Scott Fullman, director of derivatives with WJB Capital Group. “The market has been difficult to call because of volatility and the close ties to crude oil prices,” Fullman said in a phone interview with SmallCapInvestor.com. He suggested looking at trades to hedge against a potential downturn in stocks amid a . . .

Small-cap shares pushed higher shortly after the opening, underpinned by decent earnings news and a lack of follow through on the safe-haven trade that dominated action Tuesday. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.32, or 0.45%, at 738.97.

The fact that stocks were able to look past yet another record high in crude oil prices was impressive, as most of the overnight news was tilted toward the bearish angle for equities. Crude oil prices climbed past $130 dollars a barrel, but it appeared that move had already been priced into the “fear” quotient during Tuesday’s decline.

In addition to the rally in crude oil, the U.S. dollar took a hit overnight, sinking about 0.7% versus the euro, and 0.3% against the yen. The greenback did appear to trim those losses when the stock market edged higher after the open.

The market has very much been tied to investment flows of late, and there is some thought that the market is underinvested in stocks with huge cash on the sideline. As that cash starts to chase the rally off the March lows, it could be enough to power the market higher, but it’s a tenuous play given strapped discretionary spending for consumers. Days of extremely light volume suggest that the sideline players . . .

Shares of Cost Plus Inc. (Nasdaq:CPWM) are flat following news before the start of trading that the specialty retailer of casual home living and entertaining products has partnered with Golden West Brewing Company Inc. to launch a new organic beer. The all-malt beer will be released in March.

Some of Oakland, Calif.-based Cost Plus’s 299 stores sell food and beverages.

At 2:55 p.m. ET, the stock had climbed $0.08, or 2%, to $3.56. For detailed price information and recent news stories about Cost Plus, click CPWM.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting modest declines on news of poor December retail sales.
 
At 10:57 a.m. ET, the small-cap index was down 4.72 points, or 0.66%, to 707.40. The Dow Jones Industrial Average (INDU) had lost 29.67 points, or 0.23%, to 12,705.64.

Small-cap stocks started the day in negative territory but quickly recovered as investors apparently weighed news of disappointing December retail sales against news of a government report that showed an unexpected decline in weekly jobless claims.

The bearish pre-market mood was due to news of weak December sales at the major U.S. retailers. The main culprits appear to be the early Thanksgiving holiday, which moved some shopping days to November, as well as the deep discounts that many retailers offered to lure in shoppers.

Small-cap retailers also failed to impress, with music and apparel seller Hot Topic, Inc. (Nasdaq: HOTT) reporting that December same-store sales dropped 6.2%, leading the company to lower its fourth-quarter earnings guidance.

Similarly, Watsonville, Calif.-based boating supply retailer West Marine, Inc. (Nasdaq: WMAR) announced fourth-quarter results that disappointed analysts, while Cost Plus, Inc. (Nasdaq: CPWM) said that holiday same-store sales declined.

On the bright side, apparel retailer Eddie Bauer Holdings, Inc. (Nasdaq: EBHI) announced that fourth-quarter same-store revenue rose 4.8%.

Retailer of casual home living Cost Plus, Inc. (Nasdaq: CPWM) reported same-store sales for the holiday season declined, but said holiday sales were the best since 2004.

Same-store sales for the holiday period decreased 3.4%, compared with a 6.9% decrease for the same period last year. Despite the decline, the company said it delivered the best holiday same store sales performance since fiscal 2004 and said there are signs of improvement in the direction of the same-store sales trend.

Net sales for the quarter ended Jan. 5, 2008 were $300.7 million, compared with $301.6 million for the same quarter in fiscal 2006. Eleven analysts polled by Thomson were forecasting on average $382.43 million in sales for the quarter.

Shares of Cost Plus (CPWM) gained $0.35, or 9.16% to $4.17 out of the gate. Shares of Cost Plus have been trading in the range of $2.86 to $11.27 for the past 52 weeks.
 

Cost Plus, Inc. (Nasdaq: CPWM) shares are climbing in afternoon trading after a regulatory filing revealed after Friday’s closing that a Danish entrepreneur has taken a 14.9% stake in the home products retailer. Jakup Jacobsen, who already owns a sizeable investment in retailer Pier 1 Imports, Inc. (NYSE: PIR), owns the Iceland-based retail holding company Lagerinn and also is a global licensee for Swedish home-furnishings retailer Jysk.

In a filing with the Securities and Exchange Commission, Jacobsen revealed that he owns about 3.3 million shares for $41.9 million. As of Dec. 6, the company has approximately 22 million shares outstanding. Jacobsen also holds 1,213 Cost Plus shares for his child.

In today’s trading, CPWM shares were up 16.17%, or $0.71, at $5.10. Over the last 52 weeks, shares have ranged from $2.86 to $11.39.

The Russell 2000 (NYSE: IWM) fell today as economic worries and concerns about the U.S. housing sector took to the forefront. The small-cap index dropped 14.87 points, or 1.97%, to 739.06. The Dow Jones Industrial Average (INDU) let go 172.65 points, or 1.29%, to 13,167.20.

On a year-to-date basis, the Russell 2000 is down 6.14%, while the Dow has gained 5.55% and the S&P 500 has advanced 2.07%.

The U.S. housing sector continues to agonize financial institutions with bets on securities backed by subprime mortgages and will probably continue reporting losses; the overall economic situation is not rosy.

That’s what we found out today, so it’s no doubt the bears dominated trading.

Stocks fell out of the opening on news that Citigroup Inc. (NYSE: C) announced has lowered its ratings on nine U.S. banks. The New York-based company, the largest U.S. bank, said that it expects those banks to see more losses stemming from the purchase of securities backed by subprime mortgage loans.

Home prices began to stagnate in the second half of 2006, leading to a wave of foreclosures and delinquencies as cash-strapped borrowers were unable to pay their mortgages. The squeeze was hardest on those with poor credit histories who took advantage of lax lending standards and secured loans that quickly overwhelmed their ability to make payments.

The housing situation is not getting any better.

The National Association of Homebuilders reported that builder confidence in the market for new single-family homes remained at a record low for a third consecutive month in December. The NAHB/Wells Fargo Housing Market Index stayed at 19 this month, its lowest level since the measure was introduced in 1985.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling on news that U.S. home builder confidence remains low. At 2:58 p.m. ET, the small-cap index was down 10.06 points, or 1.33%, to 743.87. The Dow Jones Industrial Average (INDU) had retreated 159.08 points, or 1.19%, to 13,180.77.

The bears have been running the show today, ever since Citigroup Inc. (NYSE: C) announced before the start of trading that it has lowered its ratings on nine U.S. banks. The New York-based company, the largest U.S. bank, said that it expects those banks to see more losses stemming from the purchase of securities backed by subprime mortgage loans.

The financial sector has been bleeding in the wake of the meltdown in the subprime sector, which started this summer. Home prices began to stagnate in the second half of 2006, leading to a wave of foreclosures and delinquencies as cash-strapped borrowers were unable to pay their mortgages.

Speaking of the housing sector, the picture remains dire.

Builder confidence in the market for new single-family homes remained at a record low for a third consecutive month in December, according to the National Association of Homebuilders after the start of trading.

The NAHB/Wells Fargo Housing Market Index stayed at 19 this month, its lowest level since the measure was introduced in 1985. Readings below 50 indicate that more builders view market conditions as poor rather than favorable.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices dropped on news that the Fed lowered its target interest rate 0.25%. The small-cap index let go 24.93 points, or 3.15%, to 766.27. The Dow Jones Industrial Average (INDU) lost 294.26 points, or 2.14%, to 13,432.77.

On a year-to-date basis, the Russell 2000 is down 2.69%, while the Dow has advanced 7.68% and the S&P 500 has added 4.31%.

Stocks sank today as investors were apparently disappointed after the U.S. Federal Reserve decided to lower its target for the federal funds rate 0.25% to 4.25%.

“Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending,” the Federal Open Market Committee said at about 2:15 p.m. ET, in a statement accompanying the decision. “Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time.”

Wall Street was expecting the reduction, with some voices calling on the central bank to act more boldly to prevent the possibility of the U.S. economy falling into recession due to declining house prices and fallout from the meltdown in the subprime mortgage sector.

Small-cap stocks, which opened on a bullish note and were holding on to modest gains, reacted to the news by going on a steep descent.

The Russell 2000 (NYSE: IWM) is posting gains as investors hold their breath ahead of the U.S. Federal Reserve’s decision on interest rates. At 2:01 p.m. ET, the small-cap index was up 3.81 points, or 0.48%, to 795.01.The Dow Jones Industrial Average (INDU) had added 33.09 points, or 0.24%, to 13,760.12.

Stocks are in positive territory as investors wait for the Fed to announce its decision on monetary policy. Financial markets are expecting to see the federal funds rate lowered at least 0.25%. More bullish voices are calling for a decline of 0.50% or even 0.75%.

The U.S. central bank’s target interest rate now stands at 4.5%. In its latest two meetings, the Fed lowered the rate a cumulative 0.75% in order to help the U.S. economy get through a rough patch caused by declining home prices and the financial aftershocks of the subprime mortgage meltdown.

“The U.S. economy is now in the danger zone,” says a report released today by forecasting company Global Insight. The Boston, Mass.-based firm’s “Top-10 Economic Predictions for 2008” shows the U.S. economy showing no growth in the last quarter of 2007 and weak growth during the first six months of 2008.

The Russell 2000 (NYSE: IWM) is higher as investors anticipate the U.S. Federal Reserve will lower its target interest rate.
 
At 10:41 a.m. ET, the small-cap index had climbed 1.86 points, or 0.24%, to 793.06. The Dow Jones Industrial Average (INDU) had declined 20.64 points, or 0.15%, to 13,706.39.

Small-cap stocks are posting modest gains as investors focus their attention on the U.S. Federal Reserve, which is meeting today to decide on monetary policy. Financial markets have recently taken the view that a 0.25% cut in the federal funds rate, the rate at which commercial banks make overnight loans to each other, is a sure bet.

The target interest rate currently stands at 4.5%. The U.S. central bank will announce its decision at 2:15 p.m. ET.

A cut will help boost the economy, which some economists say could fall into recession due to the ongoing slump in the housing sector and the credit squeeze.

Also helping the bulls are solid earnings news from major players.

Telecommunications giant AT&T Inc. (NYSE: T) said that it will buy back up to $15.2 billion of shares. The San Antonia, Texas-based company also said that it expects to see growth in fiscal 2008 earnings.

Shares of Cost Plus Inc. (Nasdaq: CPWM) have fallen to a new 52-week low after the specialty retailer of casual home living and entertaining products reported after Thursday’s close that its second-quarter net loss widened.

The net loss for the three months ended August 4 was $18.0 million, or $0.81 per share, compared with a loss of $14.2 million, or $0.64 per share, a year earlier. Sixteen analysts polled by Thomson Financial were expecting the Oakland, Calif.-based company to report a smaller net loss of $0.65 per share.

Net sales of $215.2 million also missed Wall Street’s projections. Analysts were calling for net sales of $217.28 million. Cost Plus booked sales of $215.3 million during the same period of 2006.

The company, which operated a total of 296 stores in 34 states as of early August, reported that same-store sales for the quarter decreased 7.6%, compared with a 3.2% decrease last year.

Cost Plus attributed the wider loss to stolen or missing inventory.

Superconductor Technologies, Inc. (Nasdaq: SCON), Carolina National Corp. (Nasdaq: CNCP) and I.D. Systems, Inc. (Nasdaq: IDSY) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Cost Plus, Inc. (Nasdaq: CPWM), Novacea, Inc. (Nasdaq: NOVC) and Isramco, Inc. (Nasdaq: ISRL) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Odd as it may sound, water has become a growth market. I’m referring, of course, not to good, old-fashioned tap water, but rather designer flavored waters that are featured prominently on grocery and health food store shelves. The market for flavored water grew 50% annually between 2001 and 2004 (the latest year for which data were available). Industry analysts forecast the flavored water market will grow to $800 million by 2009, from $168 million in 2004, a greater than four-fold rise.

Sales of flavored water and other non-carbonated drinks are expected to surpass soft drink sales by 2010. This is because consumer tastes are shifting away from traditional sugary soft drinks to healthier “New Age” beverages, which include sodas made from “natural” ingredients, fruit juices and fruit drinks, energy and health drinks, ready-to-drink teas, sports drinks and bottled waters. New Age beverages are distinguished from mainstream beverages by less sugar, less carbonation and natural ingredients.

According to Beverage Marketing Corporation, wholesale dollar sales in the New Age beverage segment were approximately $16.9 billion in 2005. Consumer awareness of the health risks of too much sugar, studies evidencing the athletic performance benefits of proper hydration, and a variety of new beverages/serving sizes are fueling robust sales in the New Age beverage category.

The overall U.S. market for packaged beverages is immense, with total sales estimated at $270 billion in 2005. Sales volume grew 6% annually between 2002 and 2005. Carbonated beverage sales were estimated at $66 billion, or 25% of the total beverage market. Following many years of respectable growth and beginning in 1999, carbonated beverages began to post six consecutive years of less than 1% annual growth and then consumption declines. Despite a declining sales trend, the market for carbonated beverages remains significant, in terms of both volume and sales, and market share remains far larger than any other beverage category.

Two companies that will benefit from the popularity of flavored water and other New Age beverages are Reeds, Inc. (OTCBB: REED) and Jones Soda Co. (Nasdaq: JSDA).

Morgan Keegan & Co today upgraded casual home living and entertaining product retailer Cost Plus, Inc. (Nasdaq: CPWN) to a rating of “market perform” from “under perform.” 

“We view the valuation as appropriate given the struggles the company faces in rejuvenating sales and earnings,” Morgan Keegan analyst Laura Champine wrote in a research note.

Shares of the California based company have tumbled 29% since the beginning of 2007 and currently trade at less than 1x tangible book value of $12.71.

Cost Plus was recently eliminated from the Russell 2000 Index, and Champine said this may have contributed to recent weakness of the stock.

Although shares of the retailer have plunged this year, Champine notes that the road ahead for Cost Plus shares could be a volatile one rooted in short-term sentiment changes. Lately there has been speculation that the specialty retailer may be bought out. This speculation is validated in a filing by Red Mountain Capital Partners, which entered into a confidentiality agreement with the company in April. No updates have been made since this agreement was made public.

Atlanta-based Web.com, Inc. (Nasdaq: WWWW), a website hosting company, reported it is being acquired by Website Pros Inc. (Nasdaq: WSPI) for about $129 million in a cash and stock deal.

Spectrum Control, Inc. (Nasdaq: SPEC), a maker of electronic components for communications and aerospace equipment, said after Tuesday’s closing bell it expects third-quarter earnings per share to be up more than 57%.

Morgan Keegan upgraded home products retailer Cost Plus, Inc. (Nasdaq: CPWM) to “market perform” from “underperform.”

Shares in Playboy Enterprises, Inc. (NYSE: PLA) are up after the entertainment company announced it is opening a 40,000-foot club in Macau in 2009 as part of a plan to expand into China.

These are the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $500 million:

Stocks ended the day down sharply due to fears that hedge funds that have invested in sub-prime mortgages will need to be bailed out. The Russell 2000 weathered the sell-off relatively unscathed, falling 5.06 points, or 0.60%, to finish at 834.75. The Dow Jones Industrial Average shed 185.58 points, or 1.37%, to 13,360.26.

Stocks were already heading south this afternoon and news that investment bank Bear, Stearns & Co. (NYSE: BSC) has assumed the $3.2 billion loans to its hedge fund in order to stop creditors from seizing assets only made things worse.

Shares of Cost Plus Inc. (Nasdaq: CPWM) reached a new 52-week low after UBS cut the company’s target price to $7 from $10.

Shares of the specialty retailer of casual home living and entertainment products slid 6.63% or $0.55, to a reach a new low of $7.74. Shares had been trading in a 52-week range of $7.86 to $14.69 before today.
 
“We remain concerned with prospects for Cost Plus World Market and its shares,” UBS analyst Brian Nagel wrote in a research note. “To reflect our continued lack of confidence in the ability of Cost Plus to recover successfully in an increasingly challenging macro environment we are again lowering our EPS forecasts and price target for CPWM.”

Nagel now expects fiscal year 2007 earnings to clock in at a loss of $1.10, widening from an originally forecasted loss of $0.69 and a Street forecast of a loss of $0.90. These numbers compare with a loss of $0.81 last year.

The new lower EPS forecasts are based on continued sales declines, diminishing merchandise margin in the near term and lack of expense leverage. Specifically, Nagel cites an increasingly challenging environment for home fashion retail and internal shortcomings as major difficulties that weigh on the company.

Shares of Inphonic Inc. (Nasdaq: INPC) took a beating on news that DeutscheBank downgraded the stock on poor subscriber growth. This news was on the heels of missed analyst estimates.

Shares of Cost Plus Inc. (Nasdaq:CPWM) fell to a 52-week low on Friday, after a UBS analyst cut his price target on the stock to $7 from $10.

Scrap metal recycler and lead fabricator Metalico Inc. (AMEX: MEA) announced that institutional investors will buy $36.7 million of its common stock in a private placement. In association with the private placement, Metalico will also issue 5.2 million shares of common stock at $7 per share.

These are the biggest percentage losers in Friday’s trading among companies with market capitalizations under $500 million:

The Russell 2000 small cap index is holding on to its early gains in thin trading as investors look to the three-day weekend.  At 2:41 p.m. ET the Russell 2000 had gained 4.20 points, or 0.51%, to 828.00.  The Dow Jones Industrial Average was up 45.02 points, or 0.33%, to 13,486.15.

Shares of IDM Pharma Inc. (Nasdaq: IDMI) are rising on news of positive analyst coverage.  Brokerage house Cantor Fitzgerald expects that the stock price of the Irvine, Calif.-based company will quadruple over the next year, according to news reports after the opening bell.

Cost Plus Inc.’s (Nasdaq: CPWM) stock was down on heavier-than-normal volume this morning despite being upgraded to “Hold” from “Sell” by AG Edwards.

The Oakland, Calif.-based specialty retailer announced late Thursday fiscal fourth quarter and full-year 2006 financial earnings results that missed analysts’ estimates.

For the fourteen-week fourth quarter ended Feb. 3, Cost Plus reported net income of $7.5 million, or $0.34 per share, on revenue of $396.7 million.

Twelve analysts polled by Thomson First Call had estimated earnings per share of $0.84 on revenue of $395.9 million for the fourth quarter.

The following small-cap companies were making news in after-hours trading Wednesday:

Avici Systems Inc. (Nasdaq: AVCI) plunged $3.04, or 22.5%, to $10.50 on unusually heavy volume after the routing systems provider announced plans to transition away from core router development to focus on its new product initiative, Soapstone Networks. The company also announced a special dividend of $2 per share and released its first quarter financial results, which included a profit of $6 million, or $0.42 a share.