The deadlock in Washington over reducing the federal deficit and extending the government’s spending limit, along with the European economic train wreck, have weighed heavily on investors this week. Small cap stocks have taken their lumps too.
However, there were some bright spots Tuesday, even as the Russell 2000 Index lost 0.45 percent and the Standard & Poor’s Small Cap 600 shed 0.33 percent. The other major U.S. stock indexes also bounced around all day and finished less than 1 percent in the red for the session.
Late in the day, online travel company Orbitz caught fire for no readily apparent reasons. Orbitz jumped 30 percent, as did Radiant Systems, the maker of point-of-sale terminals and kiosks used in the hotel and retail industries, which is being acquired by NCR for $1.2 billion.
Two small caps that aren’t in the Russell 2000 or S&P 600 also posted substantial gains:
Shares of eOn Communications (Nasdaq: EONC), which builds VoIP and other networks, finished 30 percent higher. Last month the company reported that it turned profitable in its fiscal third quarter, after becoming the majority owner of Cortelco Systems Puerto Rico. A look at its financials shows that Cortelco is behind the profit.
EntreMed (Nasdaq: ENMD), a pharmaceutical company that is developing various cancer treatments, closed up 18 percent, but shares are down 51 percent this year. The company is struggling financially, and last week immediately drew $1.1 million from a new $7.5 million credit facility.
Tuesday’s Top Performing Small Cap Stocks (Data provided by Google Finance)
Orbitz Worldwide (NYSE: OWW): Shares of the online travel company popped late in Tuesday’s trading session. Late Monday, OWW announced a private-label partnership with Virgin Australia.
Radiant Systems (Nasdaq: RADS): The company, which sells its point-of-sale terminals and kiosks to the hospitality and retail sectors, is being acquired by NCR for $1.2 billion.
Clean Energy Fuels (Nasdaq: CLNE): This T. Boone Pickens-backed operator of natural gas fueling stations in North America rose after Northland Capital Markets analysts upped it to outperform. Chesapeake Energy announced plans to invest $150 million in CLNE to roll out more liquefied natural-gas fueling spots at Pilot-Flying J truck stops.
BioMimetic Therapeutics (Nasdaq: BMTI): Shares of the developer of regenerative therapies in the body rebounded from Monday’s 52-week low. BMTI has struggled since May when concerns arose over regulatory approval of its bone graft treatment. Last week, JP Morgan analysts cut the stock to neutral.
Infinity Pharmaceuticals (Nasdaq: INFI): The drug discovery and development company, which has a cancer treatment in the pipeline that relies on the corn lily (skunk cabbage) plant, hit a 52-week high and is up 47 percent year-to-date.