Russell 2000 Small Caps Lead the Indices
Small Caps making up the Russell 2000 are up 3.76% as of reporting at 1:30 P.M. Eastern today. This leads the Dow Jones Industrials, up 2.85%, and the Nasdaq, up 2.62%.
Leading small cap gainers today include U-Store-It Trust (NYSE:YSI), up 19.6%, which owns and operators self storage facilities in the United States on news of its establishment of a self storage network to include the company owned 386 facilities as well as 150 locations run with third-party partners, and plans for 250 more in the works to join the network.
Other small cap leaders include MarineMax (NYSE:HZO) up 22.64%; American Axle (NYSE:AXL) up 22.06%; Russ Berrie & Co (NYSE:RUS) up 19.6%, Celldex Therapeutics (Nasdaq:CLDX), up 32.1%; Green Plains Renewable Energy (Nasdaq:GPRE), up 32.7%.
Readers from Friday's edition will recall that GPRE was a market leader before the weekend as well. It closed on Friday at $4.40 after flirting with the $4.50 mark having opened at $3.41 in the morning. In Monday's open GPRE gapped up to start at $5.00 and as of press time is at $5.84, up 32.7% for the day.
Since the opening bell after Memorial Day, GPRE is up 107%. GPRE produces, distributes, and markets ethanol and related products in the United States. GPRE was founded in Omaha, Nebraska in 2006. GPRE recently purchased two ethanol plants previously owned by VeraSun Energy.
*****Both the Nasdaq and the S&P 500 are hitting new recovery rally highs today. Part of the reason for today's strength is the better than expected construction numbers released this morning.
The 0.8% gain in construction spending for April was the biggest gain in nearly a year. And it was far better than economists' expectations of a 1.5% drop.
This is how it will be during an economic recovery. There will be wild swings in data. Don't be surprised if construction contracts for May, and then picks up in June. Or vice versa. It really could go either way. And that won't necessarily be bad news.
Of course, it would be great to see the numbers continue to steadily improve. But that's not the way it works when an economy is recovering from the type of shocks the U.S. economy has received.
*****General Motors (NYSE:GM) ended the suspense. As expected, it filed for bankruptcy protection this morning. It's the 4th largest bankruptcy filing in US history. GM has $82 billion in assets and $172 billion in debt.
GM stock is up +20% in the early going today. I want to know why. My guess is that shorts are covering their positions. Still, I don't know why. It's expected that GM common stock will be cancelled as part of the bankruptcy proceedings.
That would mean that shorts don't have to cover their position. However, shorts may continue to incur borrowing fees from the shares they have sold. In order to be completely free of the trade, maybe covering is the way to go.
*****I've read that GM may resume trading as a new public company in 6-12 months. I don't see why it should take that long. A motivated bankruptcy judge ought to be able to deal with GMs debt faster than that.
But I will say that, depending on the terms of the bankruptcy, GM stock should be a good buy when it comes public again. GM will be stripped of one of its major stumbling blocks - pension benefits.
It's estimated that pension benefits add $1,500 in expenses for GM on each car it builds. Obviously, in today's competitive environment, that's insurmountable.
However, once these costs are gone, and GM can operate with leaner margins, the stock could be a good buy.
*****SmallCapInvestor PRO readers are enjoying their second +100% gain this year. The stock is Genco Shipping (NYSE:GNK) and it was recommended on April 9 at $14.20 a share. Please do not by the stock now. We will be taking our profits on it in the near future.
We're holding our other triple digit winner. This domestic oil and gas stock is up +130%. But the strength in oil prices means that there should be more gains coming. Look to this sector to continue providing winning small caps in the months to come.
I'm getting ready to increase our exposure to China in SmallCapInvestor PRO. The two Chinese stocks in the portfolio now are up, and China is the best growth story in the world right now (indeed, some analysts and economists are calling for China, not the U.S., to lead us to recovery). For more on SmallCapInvestor PRO, please please click HERE.
*****Graham Corp (AMEX:GHM) reported earnings on Friday. And they were not very good. The stock has lost nearly $3 over the past few days. That's plenty for me. If you bought Graham on my recommendation in Daily Profit, it is now time to take your profits. I hope you did well.
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Leading small cap gainers today include U-Store-It Trust (NYSE:YSI), up 19.6%, which owns and operators self storage facilities in the United States on news of its establishment of a self storage network to include the company owned 386 facilities as well as 150 locations run with third-party partners, and plans for 250 more in the works to join the network.
Other small cap leaders include MarineMax (NYSE:HZO) up 22.64%; American Axle (NYSE:AXL) up 22.06%; Russ Berrie & Co (NYSE:RUS) up 19.6%, Celldex Therapeutics (Nasdaq:CLDX), up 32.1%; Green Plains Renewable Energy (Nasdaq:GPRE), up 32.7%.
Readers from Friday's edition will recall that GPRE was a market leader before the weekend as well. It closed on Friday at $4.40 after flirting with the $4.50 mark having opened at $3.41 in the morning. In Monday's open GPRE gapped up to start at $5.00 and as of press time is at $5.84, up 32.7% for the day.
Since the opening bell after Memorial Day, GPRE is up 107%. GPRE produces, distributes, and markets ethanol and related products in the United States. GPRE was founded in Omaha, Nebraska in 2006. GPRE recently purchased two ethanol plants previously owned by VeraSun Energy.
*****Both the Nasdaq and the S&P 500 are hitting new recovery rally highs today. Part of the reason for today's strength is the better than expected construction numbers released this morning.
The 0.8% gain in construction spending for April was the biggest gain in nearly a year. And it was far better than economists' expectations of a 1.5% drop.
This is how it will be during an economic recovery. There will be wild swings in data. Don't be surprised if construction contracts for May, and then picks up in June. Or vice versa. It really could go either way. And that won't necessarily be bad news.
Of course, it would be great to see the numbers continue to steadily improve. But that's not the way it works when an economy is recovering from the type of shocks the U.S. economy has received.
*****General Motors (NYSE:GM) ended the suspense. As expected, it filed for bankruptcy protection this morning. It's the 4th largest bankruptcy filing in US history. GM has $82 billion in assets and $172 billion in debt.
GM stock is up +20% in the early going today. I want to know why. My guess is that shorts are covering their positions. Still, I don't know why. It's expected that GM common stock will be cancelled as part of the bankruptcy proceedings.
That would mean that shorts don't have to cover their position. However, shorts may continue to incur borrowing fees from the shares they have sold. In order to be completely free of the trade, maybe covering is the way to go.
*****I've read that GM may resume trading as a new public company in 6-12 months. I don't see why it should take that long. A motivated bankruptcy judge ought to be able to deal with GMs debt faster than that.
But I will say that, depending on the terms of the bankruptcy, GM stock should be a good buy when it comes public again. GM will be stripped of one of its major stumbling blocks - pension benefits.
It's estimated that pension benefits add $1,500 in expenses for GM on each car it builds. Obviously, in today's competitive environment, that's insurmountable.
However, once these costs are gone, and GM can operate with leaner margins, the stock could be a good buy.
*****SmallCapInvestor PRO readers are enjoying their second +100% gain this year. The stock is Genco Shipping (NYSE:GNK) and it was recommended on April 9 at $14.20 a share. Please do not by the stock now. We will be taking our profits on it in the near future.
We're holding our other triple digit winner. This domestic oil and gas stock is up +130%. But the strength in oil prices means that there should be more gains coming. Look to this sector to continue providing winning small caps in the months to come.
I'm getting ready to increase our exposure to China in SmallCapInvestor PRO. The two Chinese stocks in the portfolio now are up, and China is the best growth story in the world right now (indeed, some analysts and economists are calling for China, not the U.S., to lead us to recovery). For more on SmallCapInvestor PRO, please please click HERE.
*****Graham Corp (AMEX:GHM) reported earnings on Friday. And they were not very good. The stock has lost nearly $3 over the past few days. That's plenty for me. If you bought Graham on my recommendation in Daily Profit, it is now time to take your profits. I hope you did well.
Small-caps positive into midday; SAY, SB, and PAY lead gainers
Small-cap stocks edged into positive ground into midday trading on support from commodity names, but in general the market appeared to be in a “breather” mood after Tuesday’s manic upside push when Federal Reserve policy makers surprised the market with aggressive interest rate cuts. Some of today’s small-cap gainers are Satyam (NYSE:SAY), Safe Bulkers Inc. (NYSE:SB) and VeriFone Inc. (NYSE:PAY).
Other Market Watch highlights today included:
• Price action so far today in small caps has been pretty tame, with volume light and trading ranges tight.
• Top performers today are health care facilities, coal stocks, commercial printers, railroads, mining and metal stocks and steel companies.
• Crude oil prices held relatively steady despite a hefty 2.2 million barrel a day output cut pushed through by OPEC members.
• Real estate investment trusts (REITS) were among the poorest performers so far today, as were houseware and home furnishing stocks.
Small Cap Gainers:
• Satyam on Tuesday said it would spend $1.6 billion to purchase family-owned infrastructure companies; shareholders revolted, stock plunged 55%. Satyam's chairman backed away from the deal overnight, stock is now up 41%. See (NYSE:SAY).
• Safe Bulkers Inc. jumped 25% and is now up 165% from the November lows. See (NYSE:SB).
• VeriFone Inc. rose 24% as the electronic payment technology firm reported earnings in line with expectations and forecast profits above the projection. See (NYSE:PAY).
• Energy Conversion Devices is climbing above 10% despite a maintained "sell" rating by Citi. See (Nasdaq:ENER).
Small Cap Losers:
• MWI Veterinary Supply Inc. tumbled 19% as the distributor of animal health products erased a huge chunk of a recent rally in one fail swoop. See (Nasdaq:MWIV).
• Leggett & Platt down 10% after it cuts Q4 guidance. See (NYSE:LEG).
• MarineMax secures amendment of credit agreement; shares topple 8%. See (NYSE:HZO).
• Northstar Realty Finance Corp. down 8% on lower-than-average volume. See (NYSE:NRF).
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Other Market Watch highlights today included:
• Price action so far today in small caps has been pretty tame, with volume light and trading ranges tight.
• Top performers today are health care facilities, coal stocks, commercial printers, railroads, mining and metal stocks and steel companies.
• Crude oil prices held relatively steady despite a hefty 2.2 million barrel a day output cut pushed through by OPEC members.
• Real estate investment trusts (REITS) were among the poorest performers so far today, as were houseware and home furnishing stocks.
Small Cap Gainers:
• Satyam on Tuesday said it would spend $1.6 billion to purchase family-owned infrastructure companies; shareholders revolted, stock plunged 55%. Satyam's chairman backed away from the deal overnight, stock is now up 41%. See (NYSE:SAY).
• Safe Bulkers Inc. jumped 25% and is now up 165% from the November lows. See (NYSE:SB).
• VeriFone Inc. rose 24% as the electronic payment technology firm reported earnings in line with expectations and forecast profits above the projection. See (NYSE:PAY).
• Energy Conversion Devices is climbing above 10% despite a maintained "sell" rating by Citi. See (Nasdaq:ENER).
Small Cap Losers:
• MWI Veterinary Supply Inc. tumbled 19% as the distributor of animal health products erased a huge chunk of a recent rally in one fail swoop. See (Nasdaq:MWIV).
• Leggett & Platt down 10% after it cuts Q4 guidance. See (NYSE:LEG).
• MarineMax secures amendment of credit agreement; shares topple 8%. See (NYSE:HZO).
• Northstar Realty Finance Corp. down 8% on lower-than-average volume. See (NYSE:NRF).
Aladdin Knowledge Systems, MarineMax and Avis Budget Group among 52-week lows
Aladdin Knowledge Systems Ltd (Nasdaq:ALDN), MarineMax, Inc (Nasdaq:HZO) and Avis Budget Group (Nasdaq:CAR) are among the new 52-week lows in Wednesday's trading among companies with market capitalizations under $1 billion.
Also included among the results: Kronos Worldwide Inc (Nasdaq:KRO), Summit Financial Group Inc (Nasdaq:SMMF), Citizens First Bancorp Inc (Nasdaq:CTZN), Park-Ohio Holdings Corp (Nasdaq:PKOH), Codorus Valley Bancorp Inc (Nasdaq:CVLY) and ICO Inc (Nasdaq:ICOC).
Here are the new 52-week lows among small caps:
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Also included among the results: Kronos Worldwide Inc (Nasdaq:KRO), Summit Financial Group Inc (Nasdaq:SMMF), Citizens First Bancorp Inc (Nasdaq:CTZN), Park-Ohio Holdings Corp (Nasdaq:PKOH), Codorus Valley Bancorp Inc (Nasdaq:CVLY) and ICO Inc (Nasdaq:ICOC).
Here are the new 52-week lows among small caps:
MarineMax sinks 23% on climbing crude prices
MarineMax Inc. (NYSE:HZO) plunged 23% Wednesday and sank to a 52-week low as the price of oil climbed to more than $142 per barrel. The recreational boat retailer operates 90 stores that sell new and used boats. The Clearwater, Fla.-based company has felt the impact of record high gas prices and the sluggish economy that has brought down U.S. travel. MarineMax's stock is down more than 67% for the year, as owning and fueling a boat has grown costlier. On Wednesday, MarineMax fell on above-average volume to $5.02, about $1.50 below Tuesday’s close.
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Aladdin Knowledge Systems, Avis Budget Group and MarineMax lead small-cap percentage losers
Aladdin Knowledge Systems Ltd (Nasdaq:ALDN), Avis Budget Group (Nasdaq:CAR) and MarineMax, Inc (Nasdaq:HZO) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.
Also included among the results: Fuel Systems Solutions Inc (Nasdaq:FSYS), Pyramid Oil Co (Nasdaq:PDO), Royale Energy Inc (Nasdaq:ROYL), Temecula Valley Bancorp Inc (Nasdaq:TMCV), Thomas Weisel Partners Group Inc (Nasdaq:TWPG) and Horsehead Holding Corp (Nasdaq:ZINC).
Here are the biggest percentage losers among small caps:
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Also included among the results: Fuel Systems Solutions Inc (Nasdaq:FSYS), Pyramid Oil Co (Nasdaq:PDO), Royale Energy Inc (Nasdaq:ROYL), Temecula Valley Bancorp Inc (Nasdaq:TMCV), Thomas Weisel Partners Group Inc (Nasdaq:TWPG) and Horsehead Holding Corp (Nasdaq:ZINC).
Here are the biggest percentage losers among small caps:
MarineMax stock hits new low on slashed outlook for 2007
MarineMax Inc. (NYSE: HZO) said early today that its earnings per share for fiscal 2007 would likely be less than half of what it initially projected.
The Clearwater, Fla.-based recreational boat retailer now expects its earnings per share for the year ending Sep. 30 to be in the range of $0.45 to $0.65, down from previous expectations of $1.40 to $1.50.
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The Clearwater, Fla.-based recreational boat retailer now expects its earnings per share for the year ending Sep. 30 to be in the range of $0.45 to $0.65, down from previous expectations of $1.40 to $1.50.
