Pomeroy IT Solutions, Seneca Foods and Cornerstone Therapeutics among 52-week highs
Solar Stocks RSOL and SOL Lead Small Caps in Friday's Trading
Opening volume was higher in this morning's session with all the major indices, except the Dow, trading in the negative. As of press time at 10:40 A.M. Eastern the Dow is trading just positive at 8,768.67 while the Nasdaq and S&P 500 were down 0.10% and 0.04%, respectively.
Leading small cap gainers today was Real Goods Solar (Nasdaq:RSOL) up 42% on news of a $30 million contract to install a solar power program for the Freemont Union School District in California. RSOL is a commercial solar energy integrator in the California and Colorado markets.
Other gainers in this morning's session include Cadiz (Nasdaq:CDZI) up 40%; American Woodmark (Nasdaq:AMWD) up 18.9% on posting a surprise Q4 profit; and Chinese solar firm Renesola (NYSE:SOL) up 16.9%.
Small cap decliners include United PanAm Financial (Nasdaq:UPFC) down $1.02 to $2.96 for a loss of 26.1% after a notice of delisting from the Nasdaq; Hawkins (Nasdaq:HWKN) down 14.1%; Exide Technologies (Nasdaq:XIDE) down 16.2%.
No sooner do I say that the news cycle is turning negative, we get some significant upgrades in the financial sector. Goldman Sachs (NYSE:GS) got an "outperform" rating and rose 5.2%.
RBC Capital Markets called KeyCorp (NYSE:KEY) a "top pick" and the shares ramped 20%. And Fifth Third Bancorp (Nasdaq:FITB) rose 7% after it reported that it has filled the capital shortfall identified during the Treasury's "stress tests."
At least for a day, the financials re-took their leadership for the markets. Though it should be noted that the Financials ETF (AMEX:XLF) has not made a new high, and the financials are sharing the stage with energy stocks.
*****Money managers report that a lot of cash is sitting in the sidelines. Both individual and institutional investors have been slow to get back into the stock market.
Of course, that's exactly the scenario that can keep stocks moving higher. At least, so long as the economic data doesn't take a turn for the worse.
*****Citigroup reported in a research note that put options volume is picking up and so is the Volatility Index, the VIX. Investors buy put options to profit form downside moves for stock prices. Institutional investors protect gains in large portfolios with put options.
The VIX measures the cost of put options. When it rises, it means that investors see increasing risk in the stock market. Citigroup's chief technical analyst, Tom Fitzpatrick, believes the rise in the VIX is showing "strong warning signals" for the rally.
*****Bulls vs. Bears, fear vs. greed - that's what it always comes down to. Will the analysts who see better times ahead for the banks win out? Or will those who see "warning signs" be right? As always, we'll see…
*****The gains just keep coming for SmallCapInvestor PRO stocks. Since March, we've seen a 152% gain from our top oil stock, and we had Genco Shipping (NYSE:GNK) hit triple-digit territory before recent weakness took it below that threshold.
Now, one of our top China stocks is knocking on the triple-digit door. The obvious catalyst for this stock will is that it moves off the over-the-counter market and starts trading on the Nasdaq as soon as today. I expect the increased exposure to help drive the share prices higher.
This stock blew through our conservative $8 price target. The new listing and rising prices for its product will have a positive influence on shares. Our target price is being raised to $14 per share. That's about 40% higher from current prices.
I am very bullish on Chinese stocks. And SmallCapInvestor PRO now has 3 Chinese stocks in the portfolio. In fact, we just added one on Wednesday. I've put all three stocks in a brand new Special Report called "Going for Growth: 3 Top Chinese Stocks to Buy NOW." Find out how to get your copy HERE.
Calavo Growers , Hawkins and KongZhong among 52-week highs
Also included among the results: ImmunoGen Inc. (Nasdaq:IMGN), SIGA Technologies Inc. (Nasdaq:SIGA), Diedrich Coffee Inc. (Nasdaq:DDRX), Frisch's Restaurants Inc. (Nasdaq:FRS), Carmike Cinemas Inc. (Nasdaq:CKEC) and Cott Corp. (Nasdaq:COT).
Stein Mart, Bank of Kentucky Financial and Kirklands among 52-week highs
Great Southern Bancorp, STEC and Loral Space & Communications among 52-week highs
Also included among the results: Hawkins Inc.(Nasdaq:HWKN), Medifast Inc.(Nasdaq:MED), Pervasive Software Inc.(Nasdaq:PVSW), Diedrich Coffee Inc.(Nasdaq:DDRX), Ardea Biosciences Inc.(Nasdaq:RDEA) and ESB Financial Corp.(Nasdaq:ESBF).
Microsemi, Dynamex and Layne Christensen among 52-week lows
Also included among the results: Breeze Eastern Corporation (Nasdaq:BZC), Hawkins Inc (Nasdaq:HWKN), GMX Resources Inc (Nasdaq:GMXR), T 3 Energy Services Inc (Nasdaq:TTES), i2 Technologies Inc (Nasdaq:ITWO) and Berry Petroleum Co (Nasdaq:BRY).
Hawkins, Hawaiian Holdings and DXP Enterprises among 52-week highs
Here are the new 52-week highs among small caps:
Russell 2000 falls even more
The Russell 2000 (NYSE: IWM) has sunk even deeper into negative territory following news of record low U.S. homebuilder confidence. At 2:26 p.m. ET, the small-cap index had retreated 16.86 points, or 2.19%, to 752.64. The Dow Jones Industrial Average (INDU) had fallen 154.70 points, or 1.17%, to 13,022.09.
Trading began on a bearish note following news that investment bank Goldman Sachs Group, Inc. (NYSE: GS) downgraded financial services giant Citigroup Inc. (NYSE: C) to “sell” from “neutral” on fears that it could suffer up to $15 billion in write-downs on collateralized debt obligations over the next two quarters.
The fact that the largest U.S. bank has been dealt a blow and added to the list of casualties scared investors and served as a reminder that the subprime mess is still working its way through the system and has the potential to inflict more pain.
The financial sector has been feeling the sting of the meltdown in the subprime mortgage sector, which began after the U.S. housing prices started to stagnate in the second quarter of 2006.
Speaking of housing, the National Association of Home Builders reported after the start of trading that its index of builder confidence stayed at a record low level for the second month in row in November.
Builder confidence in the market for new single-family homes held at October’s upwardly revised level of 19, the trade association announced. That’s the lowest reading since tracking started in January 1985.
“The message from today’s report is that builders do not see any significant change in housing market conditions as compared to last month,” said NAHB chief economist David Seiders in a statement. “While they continue to work down inventories of unsold homes and reposition themselves for the market’s eventual recovery, they realize it will be some time before market conditions support an upswing in building activity.”
Cardinal State Bank (Durham, NC) leads Friday small-cap percentage gainers
Chemical company ShengdaTech Inc. (Nasdaq: SDTH) said it expects net income of about $23 million in fiscal year 2007. The guidance is 31% higher than the China-based company’s $17.5 million net income in 2006.
Yadkin Valley Financial Corp. (Nasdaq: YAVY) announced it is buying Cardinal State Bank (Nasdaq: CSNC) for about $41.8 million, or $17.62 per share, in cash. Yadkin expects to complete the deal in the fourth quarter of 2007.
Silverleaf Resorts, Inc. (Nasdaq: SVLF) raised its full-year profit guidance, citing boosted Vacation Interval sales and interest income.
Australian investment firm Babcock & Brown Ltd. (ASX: BNB) announced it is buying laundry services business Coinmach Service Corp. (AMEX: DRA) for $713 million.
Hawkins, Inc. (Nasdaq: HWKN) reported a profit of $1.8 million, or $0.18 per share, for the fourth quarter ended April 1, compared with a $1.3 million profit, or $0.13 per share, a year earlier.
These are the biggest percentage gainers in Friday's trading among companies with market capitalizations under $500 million:
Another day of gains
The Russell 2000 added 4.01 points, or 0.48 percent, to 832.88, less than a point below its record close on April 26. The Dow Jones Industrial Average closed in record territory for the fourth day on a row, adding 23.24 points, or 0.18 percent, to 13,264.62.
